Market Trends of Colombia Telecom Industry
This section covers the major market trends shaping the Colombia Telecom Market according to our research experts:
Rising demand for Fixed Broadband Services
- The increase in FTTH (fiber-to-the-home) broadband services will positively drive the growth of the telecom market. For instance, Telefonica Colombia's (Movistar) FTTH network reached the milestone of one million homes. Movistar FTTH network is expected to pass 1.2 million homes by the end of the current year.
- For instance, Claro Colombia invested USD25 million to connect an additional 20 municipalities to its fiber-to-the-home (FTTH) network. Such initiatives will bring new growth opportunities for the telecom market.
- Colombian telecom players are expanding their network capacity with wireless deployments. For instance, Eurona will provide free wifi coverage to users of the Medellin metro in Colombia. Wifi service is available in the airports of Bogota (El Dorado), Cartagena de Indias (Rafael Nunez), and Pereira (Matecana).
- Fixed broadband penetration is expected to increase during the forecast period, driven by ongoing efforts by the government to expand fixed broadband coverage and services across the country, particularly in rural areas. According to the Ookla Speedtest Global Index, Colombia ranked 41st with a median fixed broadband download speed of 87.24 Mbps this October.
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Rising demand for OTT and PayTv Services
- The revenue from PayTV services is anticipated to drop in the next five years due to a steady decline in DTH subscriptions and emerging competition from OTT service providers.
- For instance, Telefonica Colombia (Movistar) signed an agreement with DirecTV to acquire the group's 4G broadband assets in Colombia. DirecTV serves approximately 200,000 internet clients in Colombia, of which 60% have their service packaged with a TV subscription.
- Increasing mobile subscribers will significantly increase the demand for OTT (over-the-top) services. OTT service providers such as Netflix, Amazon Prime, and Disney+ offer customers subscription on-demand videos (SVOD), thus creating new growth opportunities for the telecom market.
- According to the Ookla Speedtest Global Index, Colombia ranked 104th with a median mobile download speed of 10.99 Mbps this October. OTT services will further increase mobile data consumption.
- During the COVID-19 outbreak, people adopted work-from-home practices and spent more time watching videos, games, and other forms of entertainment at home. Thus, OTT service providers offering on-demand videos will further drive the market's growth.
