This Frost & Sullivan research service titled Colombian Telecommunications Services Markets provides drivers and restraints, a market forecast, and a competitive analysis. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: Local telephony, long distance telephony, broadband and Internet access, data communications services, mobile telephony, VoIP, and pay TV services.

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Market Overview

Mobile Telephony and Broadband Services Drive Market Growth

Thanks to the explosive penetration of mobile telephony and broadband services, the Colombian telecommunication services market has witnessed high and stable growth rates in recent times. Even though the mobile telephony market has achieved a penetration of over 70 percent, there still exists ample space to grow in the low income segment, which is being targeted by operators through prepaid schemes and handset subsidies. Going forward, voice services will continue to be the main source of revenues, but others such as MMS and data mobile services are expected to grow in popularity and have a much higher participation in revenues.

With regard to broadband and Internet access services, growth is likely to be accelerated by the country’s economic progress, more affordable PCs, and the Government’s social programs for digital inclusion. Moreover, broadband prices continue to fall as a result of increasing competition and this trend is likely to further spur subscriber growth. "Regarding the different broadband technologies, DSL holds the highest number of subscribers, followed very close by cable connections," notes the analyst of this research service. "On the other hand, the dial-up segment is fast loosing ground is likely to almost disappear by 2012.

VoIP Segment Likely to Grow Fastest

Quite significantly, the voice over Internet Protocol (VoIP) segment is likely to emerge as the fastest growing market segment, followed by the broadband and Internet access segment. During the forecast period, the VoIP segment is projected to grow at a compound annual growth rate (CAGR) of 77.0 percent and the number of lines is expected to grow from 22,560 to 504,509. Notwithstanding this, the mobile telephony segment is expected to continue to be the leading revenue generator in the Colombian total telecommunications market. The growth of this segment will be driven by the adoption of value-added services and the acceptance of new mobile applications, such as mobile TV.

Given the increasing competition and the overwhelming need to maintain healthy average revenue per unit (ARPU), it will be vital for market participants to offer bundled solutions and triple play, as well as integrated packages of telecommunications and IT solutions," says the analyst. "Having a structured offering of technological convergence is a global trend in telecommunications, and is rapidly changing the course of the Colombian market.