Press release
Nicaragua: National Fiber-Optic Network and Increasing Demand for 3G and 4G Connectivity Support Growth in the 2016-2021 Period
With an estimated PPP-adjusted GDP per capita of $5,430 in 2016, Nicaragua is one of the least developed economies in Latin America, just above neighboring Honduras. During 2016, its telecom and pay-TV services market generated an estimated $725.5m, which puts Nicaragua at the bottom of the Central American regional ranking. Moving forward, GlobalData projects that during the 2016-2021 period, total telecom and pay-TV services revenue will expand at a 1.3% CAGR, supported by an increasing demand for data services, both mobile and fixed, and the growing adoption of pay-TV services.
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Nicaragua: National Fiber-Optic Network and Increasing Demand for 3G and 4G Connectivity Support Growth in the 2016-2021 Period," a new Country Intelligence Report by Pyramid Research, provides an executive-level overview of the telecommunications market in Nicaragua today, with detailed forecasts of key indicators up to 2021. Published annually, the report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, mobile and pay-TV sectors, as well as a review of key regulatory trends.
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The Country Intelligence Report provides in-depth analysis of the following -
- Regional context: telecom market size and trends in Nicaragua compared with other countries in the region.
- Economic, demographic and political context in Nicaragua.
- The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
- A demand profile: analysis as well as historical figures and forecasts of service revenue from the fixed telephony (including VoIP), broadband, mobile voice, mobile data and pay-TV markets.
- Service evolution: a look at changes in the breakdown of overall revenue between the fixed/pay-TV and mobile sectors and between voice, data and video from 2016 to 2021.
- The competitive landscape: an examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
- In-depth sector analysis of fixed telephony, broadband, mobile voice, mobile data and pay-TV services: a quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
- Main opportunities: this section details the near-term opportunities for operators, vendors and investors in Nicaraguas telecommunications and pay-TV markets.
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Scope
- The Nicaraguan telecom and pay-TV market generated an estimated $725.5m in revenue during 2016, 3.1% more than the previous year. Despite the fixed Internet segment being the fastest growing, the mobile voice segment continues to be the biggest revenue contributor as of year-end 2016.
- During the 2016-2021 period, we expect mobile voice will maintain its status as the largest revenue generator in the market, although it will reduce its weight as the market becomes more data-centric: Revenue from the fixed Internet and mobile data segments will expand at CAGRs of 8.7% and 6.1%, respectively, supported by increasing demand for Internet connectivity via 3G and 4G networks, as well as the implementation of public initiatives to improve the geographical coverage of fixed broadband networks across the country.
- From a revenue perspective, the Nicaraguan telecom and pay-TV market is highly concentrated with two regional players accounting for more than 95% of total revenue generated in 2016. Local incumbent Claro, which operates in the fixed, mobile and pay-TV segments, is the largest player, mainly facing competition from Movistar, which has a strong presence in the mobile segment, and Russian operator Yota, offering residential WiMAX Internet services in select parts of the country.
- The Nicaraguan telecom sector has experienced very few advances in terms of regulation over the past decade, and this is currently limiting growth opportunities in the market. The country needs to implement a new regulatory framework that replaces the outdated telecom law from 1995 and reflects the changes that the market has undergone in the past 20 years. This will help promote competition and investment in new infrastructure, which can help lift penetration levels.
- Nicaragua continues to exhibit one the lowest fixed-line penetration rates in the region, substantially below the Latin American average. Broadband penetration is also among the lowest, standing at just 4.4% at the end of 2016 (vs. 12.4% for Latin America). Nicaraguas low penetration rates are the result of insufficient levels of investment in fixed telecom infrastructure over the years, a situation that we expect to improve over the forecast period thanks to the implementation of several national broadband development projects aimed at improving the populations access to telecom infrastructure.
Reasons to buy
- This Country Intelligence Report offers a thorough, forward-looking analysis of Nicaraguas telecommunications and pay-TV markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying Pyramid Researchs Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Nicaraguas mobile communications, fixed telephony/VoIP, broadband and pay-TV markets, including the evolution of service provider market shares.
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Nicaraguas telecommunications and pay-TV markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Nicaragua.
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