Excerpt Costa Rica: Liberalization Will More Than Double Mobile Subscribers by 2015
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1 Excerpt Costa Rica: Liberalization Will More Than Double Mobile Subscribers by 2015 This report is part of Pyramid Research s series of Latin America Country Intelligence Reports August 2010 Edition Jose Magana Senior Analyst
2 Report highlights The telecommunications market in Costa Rica generated $905m in 2009, a 14.4% expansion compared with 2008, as the mobile sector continued its expansion and adoption of broadband and pay-tv services remained largely unaffected by the economic crisis. Going forward, we expect growth to come mostly from mobile services, with mobile data expanding 32.6%. Fixed broadband will expand at a CAGR of 11% while IPTV, pushed by ICE, may grow 60.2%. ICE is counting on advanced services to differentiate from new competition. Traditional pay-tv services will grow 7.9% due to by bundling with broadband and VoIP. Costa Rica: Liberalization Will More Than Double Mobile Subscribers by 2015 offers a precise, incisive profile of the country s converged telecommunications, media and technology sectors based on proprietary data from our research in the Costa Rican market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies. Published annually, this executive study provides a comprehensive view of the Costa Rican communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risks factors. Key findings of the report include: Mobile penetration of the population closed at 52% in 2009, one of the lowest rates in Latin America and not consistent with the income level of the population. We forecast that after liberalization, mobile penetration will advance to 136% by 2015 with prepaid subscriptions accounting for 79% of the total. Fixed voice will slightly decline over the next five years, totaling $164m by the end of Broadband revenue, on the other hand, will expand at a CAGR of 11% over the same period to generate $124m in 2015, the highest amount in Central America. Pay-TV services will grow at a CAGR of 7.9% over the next five years with residential penetration approaching 50% by Cable will remain the most important technology. 2
3 Revenue (US$ millions) Report highlights (cont d) COSTA RICA COMMUNICATIONS MARKET REVENUE, $1,600 $1,400 Pay-TV Broadband Internet Dial-up Internet $1,200 $1,000 $800 Fixed VoIP Fixed circuit-switched voice Mobile data Mobile voice $600 $400 $200 $0 2008A 2009A 2010E 2011E 2012E 2013E 2014E 2015E 3
4 Table of contents Executive summary Market and competitor overview Costa Rica in a regional context Economic, demographic and political context Regulatory environment Demand profile Service evolution Competitive landscape Major market players Segment analysis Mobile services Fixed services Pay-TV Convergence Identifying opportunities 4 ID# 884
5 About Pyramid Research Advising Leaders in the Global Communications Industries on Emerging Markets and Services Opportunities Pyramid Research ( offers practical solutions to the complex demands our clients face in the global telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for more than 100 countries a distinction that has remained unmatched for nearly 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry s most comprehensive market data, trusted research and insightful technology analysis. How We Cover Communications Markets Our highly structured analysis closely examines the performance, technology trends, macroeconomic and regulatory environment, of service providers and equipment vendors in each of the more than 90 countries we cover. Using a bottom-up approach, we size market demand across services and countries, and conduct end-user surveys to validate adoption trends and anticipate shifts in demand. Our commitment to intensive, direct interviewing of regulatory authorities, service providers and manufacturers complemented with end-user data ensures the most reliable portrait of every market we examine. Office locations World Headquarters 10 Canal Park Cambridge, MA Tel: Fax: North America 1100 Dexter Ave North Seattle, WA Tel: Fax: Latin America 1925 Brickell Ave, D-204 Miami, FL Tel: Fax: EMEA UBM, Ludgate House 245 Blackfriars Road London, SE1 9UY United Kingdom Tel: Fax: Asia-Pacific Room 801, AXA Centre 151 Gloucester Road Wanchai, Hong Kong Tel Fax This Country Intelligence Report on Costa Rica is priced at $990 and can be purchased online here or through Jennifer Baker via at jbaker@pyr.com or telephone at To learn more about Pyramid Research s product offerings and how they can be of service to your company, please contact sales@pyr.com or visit us on the Web at 5 T1002-3
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