Pyramid: Green Shoots in El Salvador

Mobile penetration in El Salvador is expected to climb to 136% by 2015, Pyramid says

June 22, 2011

2 Min Read

CAMBRIDGE, Mass. -- Mobile penetration in El Salvador is expected to climb to 136 percent by 2015, shifting the focus from voice services to value-added services, according to a new report from Pyramid Research (www.pyr.com).

El Salvador: Value-Added Services and Mobile Data Are Green Shoots in a Saturated Market offers a precise profile of the country’s telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and monitors the introduction and spread of new technologies.

Download an excerpt or purchase the report here.

Mobile penetration in El Salvador closed 2010 at 127 percent, one of the highest in Latin America. “With the prediction that it will climb to 136 percent by the end of 2015, mostly by mobile broadband subscriptions, mobile operators face strong growth prospects for mobile data services, particularly connectivity,” says Jose Manuel Mercado, Senior Analyst at Pyramid Research and author of this report. “Content is also an untapped opportunity, but for operators, there is strong competition. In the fixed segment, fixed broadband and the integration of pay-TV services clearly has room for expansion,” he adds.

“Fixed voice will remain flat over the next five years, totaling $407 million by the end of 2015,” indicates Mercado. Broadband revenues, on the other hand, are expected to expand at a CAGR of 14.1 percent. “Increasing PC penetration, a reduction in tariffs and the shift to digitalization will all contribute to help increase demand for connectivity. Pyramid Research anticipates that prepaid TV will gain traction in the short term and will help operators reach areas where it is more efficient than deploying fixed infrastructure,” notes Mercado.

“With data services becoming more important in the mobile segment, vendors must keep a close eye on further 3G expansions,” says Mercado. Operators estimate capex to revenues to be at around 13 to 14 percent in 2011, thanks to the economic recovery. “Pyramid believes that as the market expands, operators will keep adding capacity,” he adds.

El Salvador: Value-Added Services and Mobile Data Are Green Shoots in a Saturated Market is part of Pyramid Research's Latin America Intelligence Report Series and is priced at $990. Download an excerpt or purchase the report here. For more information, contact Jarka Justova or Lorena Marani (for those in Latin America).

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