China Telecom 2000

Market Studies

Latin America - Overviews & Company Profiles - Second Edition

Release: 2003

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Overview:


Economic activity in the region was down by 0.5% in 2002. As a result, per capita GDP growth for the Latin American and Caribbean region as a whole was negative (-1.9%) for the second year in a row. The hardest hit economies have been Argentina, Uruaguay and Venezuela.

Economic problems in most of the Central and South American region are causing major local and international companies to reassess their investments. Capital expenditure by the major fixed-line companies in the region is falling as fixed-line operators that have invested heavily in the region are finding themselves in financial trouble. Devaluation in the major economies of Argentina and Brazil, the global telecoms crisis, the lack of basic infrastructure and high levels of poverty throughout the region is making it increasingly difficult for operators to maintain workable revenues per user:

The optimistic market projections for 2002 in the telecommunications industry were not realised. Operators and equipment vendors are experiencing a slowdown as most Latin American countries experience economic difficulties. Major international investors are assessing further investment and risk management as they experience the global downturn in the markets and in some countries, limits on foreign investment. The start of 2003 sees some of the major economies in financial crisis, this is particularly so in Argentina, Venezuela and Uruguay. Growth in Brazil has been driven by liberalisation in the telecom sector, but it too is being affected by the slowing of world GDP growth, and particularly of that in the US. The US holds a 40% market share of all imports of telecommunications equipment into Brazil.

Demand for telecom services in Central and South America continues to increase and the Internet market is an important part of this growth. Growth of the Internet is not only introducing a new era of interactive services, but also driving market deregulation in the region. It is said that the Internet is having a probable effect on liberalisation in nearly all Latin American countries. Demand for Web hosting and Internet data centre services is growing rapidly. Improvement in basic telecom infrastructure has enabled the growth of Internet services, and along with the reduction in the cost of personal computers, has led to escalating demand of high-speed Internet services.

Following 2000 and 2001 rapid growth in subscriber numbers, acquisitions and spectrum licensing, wireless operators are keen to consolidate and concentrate on ARPUs. ARPUs have fallen as heavy competition in the region has driven rates down. Investment by new international entrants into the wireless market is unlikely as those already in the region try to work with the risky economic climates existing in 2002 and on into 2003. Revenues for 2002, were down by around 2% but forecasters see a rise of around 13% in 2003. Teledensity increased with the total subscriber numbers for Latin America and the Caribbean reaching 100 million at the close of 2002.


Table of Contents

 
1. Executive summary, Market overview and analysis 
1.1 Executive summary 
1.2 Market overview and analysis 2003 
1.2.1 Key trends 
1.2.2 Market overview 
2. Telecommunications market 
2.1 Overview 
2.2 Telecommunications growth 
3. Regulatory environment 
3.1 Introduction 
3.2 Foreign operators 
3.3 Regulatory reforms 
3.4 Type of deregulation 
3.5 Privatisation 
3.6 Settlement rates with the USA 
4. Telecommunications infrastructure 
4.1 Overview 
4.2 Wireless Local Loop 
4.3 International 
4.3.1 Submarine cable systems 
4.3.2 International satellite systems 
5. Major players in the market 
5.1 Overview 
5.1.1 Telmex 
5.1.2 Telemar Norte Leste (Telemar) 
5.1.3 Embratel 
5.2 Major international operators 
5.2.1 Telefonica 
5.2.2 Equant 
5.2.3 AT&T Latin America 
5.2.4 BellSouth International 
5.2.5 WorldCom Inc 
5.2.6 Telecom Italia 
5.2.7 Verizon 
6. Data, Internet and E-Services 
6.1 Market overview 
6.2 Regulatory issues 
6.3 Public data communications services 
6.3.1 Overview 
6.3.2 ISDN 
6.3.3 VSAT networks 
6.4 Internet 
6.4.1 Market overview 
6.4.2 ISP market 
6.5 Broadband networks and services 
6.5.1 Broadband market overview 
6.5.2 Cable modems 
6.5.3 ADSL 
6.5.4 Wireless broadband services 
6.6 Content and e-services 
6.6.1 E-commerce 
6.6.2 E-government 
6.6.3 E-communications 
7. Wireless Communications 
7.1 Market overview 
7.2 Mobile technologies 
7.2.1 Digital 
7.2.2 TDMA 
7.2.3 Third generation mobile 
7.3 Major mobile operators 
7.3.1 America Movil 
7.3.2 Telefonica 
7.3.3 Telecom Italia Mobile 
7.3.4 Millicom International Cellular 
7.3.5 BellSouth International 
7.3.6 Portugal Telecom 
7.4 Major equipment suppliers 
7.4.1 Qualcomm Inc 
7.4.2 Ericsson 
7.4.3 Motorola 
7.4.4 Nokia 
7.5 Mobile services 
7.5.1 Prepaid services 
7.5.2 Wireless data services 
7.6 Paging 
7.7 Trunk mobile radio 
8. Broadcasting 
8.1 Market overview 
8.2 Market characteristics 
8.3 Digitial TV 
8.4 Pay TV and cable TV 
8.4.1 Overview 
8.4.2 Cable telephony 
8.5 Satellite TV 
8.5.1 DTH 
8.5.2 Multichannel Multipoint Distribution Service 
8.5.3 Major players broadcasting in the satellite market 
8.5.4 Satellite operators 
8.6 Interactive TV 
8.7 TV content 
8.7.1 Programming in Latin America 
9. Company profiles 
9.1 América Móvil 
9.1.1 Company information 
9.1.2 Subsidiaries 
9.1.3 Other developments 
9.1.4 Contact details 
9.2 Bell Canada 
9.2.1 Company information 
9.2.2 Parent company – Bell Canada Enterprises (BCE) 
9.2.3 The network 
9.2.4 Products and services 
9.2.5 Other developments 
9.2.6 Contact details 
9.3 BellSouth International 
9.3.1 Company information 
9.3.2 Subsidiaries 
9.3.3 Other developments 
9.3.4 Contact details 
9.4 Brasil Telecom SA 
9.4.1 Company information 
9.4.2 Network 
9.4.3 Operations 
9.4.4 Services 
9.4.5 Other developments 
9.4.6 Contact details 
9.5 Diveo Broadband Networks Inc 
9.5.1 Company information 
9.5.2 Subsidiaries 
9.5.3 The network 
9.5.4 Services 
9.5.5 Other developments 
9.5.6 Contact details 
9.6 Empresa Brasileira de Telecomunicações SA (Embratel) 
9.6.1 Company information 
9.6.2 Subsidiaries 
9.6.3 Network 
9.6.4 Operations 
9.6.5 Services 
9.6.6 Other developments 
9.6.7 Contact details 
9.7 Grupo Iusacell 
9.7.1 Company information 
9.7.2 Operations 
9.7.3 Services 
9.7.4 Other developments 
9.7.5 Contact details 
9.8 Impsat Fiber Networks, Inc 
9.8.1 Company information 
9.8.2 Subsidiaries 
9.8.3 Network 
9.8.4 Operations 
9.8.5 Services 
9.8.6 Other developments 
9.8.7 Contact details 
9.9 Tele Norte Leste Participações SA 
9.9.1 Company information 
9.10 Telecom Américas Ltd 
9.10.1 Company information 
9.10.2 Subsidiaries 
9.10.3 Other developments 
9.10.4 Contact details 
9.11 Telecom Argentina SA 
9.11.1 Company information 
9.11.2 Subsidiaries 
9.11.3 Operations 
9.11.4 Services 
9.11.5 Other developments 
9.11.6 Contact details 
9.12 Telefónica Latinoamérica SA 
9.12.1 Company information 
9.12.2 Major subsidiaries 
9.12.3 Other subsidiaries and affiliates 
9.12.4 Services 
9.12.5 Contact details 
9.13 Telmex 
9.13.1 Company information 
9.13.2 Subsidiaries and affiliates 
9.13.3 Operations 
9.13.4 Services 
9.13.5 Other developments 
9.13.6 Contact details 
10. Glossary of Abbreviations 
Exhibit 1 – Latin America countries 
Exhibit 2 – Regional satellite systems 
Exhibit 3 – Drivers of high-speed Internet 
Exhibit 4 – Regulatory status of VoP in selected countries – 2002 
Exhibit 5 – GSM networks in Latin America - 2002 
Exhibit 6 – América Móvil at a glance 
Exhibit 7 – América Móvil’s major subsidiaries – 2002 
Exhibit 8 – América Móvil’s major affiliates – 2002 
Exhibit 9 – Bell Canada at a glance 
Exhibit 10 – BellSouth International at a glance 
Exhibit 11 – Brasil Telecom SA at a glance 
Exhibit 12 – Diveo at a glance 
Exhibit 13 – Summary of services offered 
Exhibit 14 – Embratel at a glance 
Exhibit 15 – Embratel subsidiaries – 2002 
Exhibit 16 – Brasilsat B-series satellites 
Exhibit 17 – Iusacell at a glance 
Exhibit 18 – Iusacell subsidiaries 
Exhibit 19 – Impsat Fiber Networks at a glance 
Exhibit 20 – Impsat’s major subsidiaries – September 2002 
Exhibit 21 – Tele Norte Leste Participações SA at a glance 
Exhibit 22 – PSTN subsidiaries prior to reorganisation 
Exhibit 23 – TNL subsidiaries and affiliates – February 2003 
Exhibit 24 – Telecom Américas at a glance 
Exhibit 25 – Subsidiaries – December 2002 
Exhibit 26 – Telecom Argentina at a glance 
Exhibit 27 – Subsidiaries – June 2002 
Exhibit 28 – Telefónica Latinoamérica SA at a glance 
Exhibit 29 – Telefonica SA at a glance 
Exhibit 30 – Telefónica Group companies – 2002 
Exhibit 31 – Major subsidiaries – 2002 
Exhibit 32 – Telmex at a glance 

Table 1 – Fixed lines in service in selected countries – 2002 
Table 2 – Internet users in selected countries – 2002 
Table 3 – Estimated ADSL subscribers – 2003 
Table 4 – Mobile subscribers and penetration – 1998-2000; 2002; 2003 
Table 5 – Latin America market statistics - 2001 
Table 6 – Cellular revenues – 2000-2002; 2006 
Table 7 – Fixed-line growth – 1999-2002 
Table 8 – Fixed lines in service in selected countries – 2002 
Table 9 – Top 10 fixed-line operators by fixed telephone lines - 2002 
Table 10 – Verizon Latin America ownership - 2002 
Table 11 – Internet and computer penetration in selected countries - 2002 
Table 12 – Internet population by region – September 2002 
Table 13 – Internet users per region – 1999-2002, 2005 
Table 14 – Internet hosts in major countries - 2001 
Table 15 – Broadband households in Latin America - 2001-2007 
Table 16 – ADSL subscribers in Latin America – 2001-2006 
Table 17 – DSL lines in Latin America – January 2002 
Table 18 – Latin America Internet service provider markets - 2002 
Table 19 – Top 25 broadband service providers Latin America – 2002 
Table 20 – Cable modems in selected countries – 2001-2003 
Table 21 – DSL users in selected countries – January 2002 
Table 22 – ADSL subscribers in Latin America – 2001-2006 
Table 23 – Brazil ADSL deployment by company – 2001-2002 
Table 24 – Argentina ADSL deployment by company – 2001-2002 
Table 25 – Mexico ADSL deployment by company – 2001-2002 
Table 26 – E-commerce sales by country - 2001 
Table 27 – E-commerce revenues for Latin America – 2001, 2003, 2005 
Table 28 – Online banking users at selected Brazilian banks - 2000 
Table 29 – Online banking users in Mexico – 2000-2001, 2005 
Table 30 – Mobile subscribers - 1998-2002, 2010 
Table 31 – Cellular subscribers in Latin America by country – September 2002 
Table 32 – Top 10 cellular operators ranked by subscribers - September 2002 
Table 33 – Latin America network standards - 2001 
Table 34 – Predictions for network standards - 2007 
Table 35 – Subscribers by technology - 2002 
Table 36 – America Movil shareholders – June 2002 
Table 37 – Summary of wireless operations – September 2002 
Table 38 – Summary of wireless operations – September 2002 
Table 39 – Summary of wireless operations – June 2002 
Table 40 – BellSouth Latin America wireless operations – September 2002 
Table 41 – Wireless data users by technology - 2000-2007 
Table 42 – Wireless data market by country - 2001 
Table 43 – Estimated SMS volume South America – 2001-2002 
Table 44 – Active wireless Internet and PC Internet users – 2000-2005 
Table 45 – Homes connected for Cable TV – 2000-2002 
Table 46 – Pay TV subscribers - 1999-2002 
Table 47 –Pay TV subscribers by country – 2000, 2006 
Table 48 – Pay TV operator revenues - 2000, 2006 
Table 49 – Cable TV subscribers in selected countries – 2001-2002 
Table 50 – Households with cable TV - 2000 
Table 51 – Cable subscribers – 1995-2002 
Table 52 – DBS subscribers - 2000-2006 
Table 53 – Major players and subscriber numbers - 2001 
Table 54 – Consolidated revenue – 1996-2002 
Table 55 – Revenue breakdown by segment – 2002 
Table 56 – Subscribers by subsidiary – 2001-2002 
Table 57 – Telcel revenue overview – 1997-2002 
Table 58 – Telcel prepaid and postpaid subscribers – 1996-2002 
Table 59 – Telcel operating statistics – 1996-2001 
Table 60 – Comcel operating statistics – 2000-2002 
Table 61 – Conecel operating statistics – 2000-2002 
Table 62 – Sercom operating statistics – 2000-2001 
Table 63 – TracFone operating statistics – 2000-2002 
Table 64 – Subscribers per service – 2002 
Table 65 – Revenue overview - 1997-2002 
Table 66 – Revenue by segment - 2002 
Table 67 – Revenue overview – 1997-2002 
Table 68 – Subsidiaries, customers and PoPs (proportionate to ownership) – December 2002 
Table 69 – Movicom BellSouth, Argentina – operations overview – 1999-2002 
Table 70 – Brazil – operations overview – 1999-2002 
Table 71 – BellSouth Chile – operations overview – 1999-2002 
Table 72 – BellSouth Colombia – operations overview – 2000-2002 
Table 73 – BellSouth Ecuador – operations overview – 1999-2002 
Table 74 – BellSouth Guatemala – operations overview – 2000-2002 
Table 75 – BellSouth Nicaragua – operations overview – 1999-2002 
Table 76 – BellSouth Panama – operations overview – 1999-2002 
Table 77 – BellSouth Peru – operations overview – 1999-2002 
Table 78 – Movicom BellSouth, Uruguay – operations overview – 1999-2002 
Table 79 – Telcel BellSouth, Venezuela – operations overview – 1999-2002 
Table 80 – Revenue overview – 1998-2002 
Table 81 – Revenue by segment – 2002 
Table 82 – Access lines– 1998-2002 
Table 83 – Public telephones – 1998-2002 
Table 84 – DLD market share – December 2002 
Table 85 – Residential customers ADSL plans 
Table 86 – ADSL customers – 2001-2002 
Table 87 – Revenue overview – 1996-2002 
Table 88 – Revenue by segment – 2002 
Table 89 – Network overview – 1999-2002 
Table 90 – Fixed lines and cellular access lines in use – 1996-2001 
Table 91 – Domestic long-distance traffic – 1996-2001 
Table 92 – International traffic – 1996-2001 
Table 93 – Revenue overview – 1996-2002 
Table 94 – Revenue by segment – 2002 
Table 95 – Cellular subscribers – 1996-2002 
Table 96 – Revenue by segment – nine months to September 2002 
Table 97 – Revenue overview – 1996-2001 
Table 98 – Revenue by segment – 2001 
Table 99 – Data and value-added services breakdown – 2001 
Table 100 – Revenue by operating subsidiary – 2001 
Table 101 – Number of customers and annual change – 1996-2002 
Table 102 – Revenue overview – 1996-2002 
Table 103 – Revenue by segment – 2002 
Table 104 – Network overview – 1996-2002 
Table 105 – ADSL subscribers – 2001-2002 
Table 106 – Revenue overview – 2001-2002 
Table 107 – Revenue breakdown by segment – 2002 
Table 108 – Subscribers by subsidiary – 2001-2002 
Table 109 – Regional market share – March 2002 
Table 110 – ATL subscribers – 2001-2002 
Table 111 – Tess subscribers – 2001-2002 
Table 112 – Telet subscribers – 2001-2002 
Table 113 – Americel subscribers – 2001-2002 
Table 114 – Operating revenue – 1998-2002 
Table 115 – Revenue by segments – 2002 
Table 116 – Telecom Personal subscribers – 1999-2002 
Table 117 – Núcleo subscribers – 1999-2002 
Table 118 – Domestic fixed-line telephone network – 1997-2002 
Table 119 – Internet subscribers – 1999-2002 
Table 120 – Operating revenue – 2000-2002 
Table 121 – Operating revenue by company – 2002 
Table 122 – Lines in service by subsidiary, incl ADSL, ISDN and PBX– 1999-2002 
Table 123 – ADSL overview by subsidiary – 2000-2002 
Table 124 – Traffic by subsidiary– 2000-2002 
Table 125 – Revenue by subsidiary– 2000-2002 
Table 126 – CANTV network – 1999-2002 
Table 127 – Revenue overview – 1996-2002 
Table 128 – Revenue by segment – 2002 
Table 129 – Lines in service – 1996-2002 
Table 130 – Telephone service overview – 1999-2002 
Table 131 – Data and Internet overview – 2000-2002