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VoIP, pay-TV, fixed broadband to boost Uruguayan telecom services

Voice-over-Internet Protocol, pay-TV and fixed broadband will be the main driver for the Uruguayan telecom services market. Pyramid Research expects the market to grow 16.5% this year, achieving $1.4 billion in revenues, an increase from the $1.3 billion generated in 2011. The research firm also forecasts a compound annual growth rate of 4.3% between 2011 and 2016, reaching $1.6 billion in total revenues.

Pyramid noted that VoIP services are expected to post a CAGR of 44.8% over that time frame, while pay-TV could see 8.1% CAGR and fixed broadband a CAGR of 5.6%.

The fixed-broadband segment generated 9.3% of total telecom revenues in 2011 and Pyramid Research expects that market to account for 9.8% in 2012, and nearly 10% by 2016. The firm added that revenues from traditional fixed telephony and the dial-up Internet segments will progressively decrease due to a fixed-mobile migration.

According to Pyramid analyst Eulalia Marín-Sorribes, the increase in fixed-broadband connections across Uruguay has been mainly supported by rapid growth in broadband subscriptions from the residential segment, helped by initiatives such as the Plan Ceibal or Antel’s Servicio Universal Hogares. The latter, launched in May 2011, is aimed at connecting every Uruguayan home to the Internet via a digital subscriber line.

Marín-Sorribes added that the new fiber-optic submarine cable between Uruguay and Argentina is expected to increase Internet bandwidth in Uruguay, helping boost broadband speeds and reduce prices.

Voice services are expected to see a decrease in the share of service revenues from 55% in 2011 to 49% in 2016. As voice loses ground, data services are expected to see an increase from 30% in 2011 to 34% in 2016, supported by digital inclusion schemes such as the Cei bal Plan.

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