Ecuador
remains one of the least developed telecom countries
in South America
Isabelle Paradis
April 2010
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According to the information released by HOT TELECOM
(www.hottelecom.com) in its latest report “Ecuador
Telecom country profile”, Ecuador is one of
the least developed telecom markets in South America
(after Bolivia, Paraguay and Peru). The country
had a fixed line penetration of 14.2% and 2.0 million
fixed subscribers at the end of 2009 and the government
hopes, through the newly created CNT, to increase
fixed penetration to 19% by the end of 2010.
The country’s mobile market is by far the
most dynamic telecom sector, after broadband, with
an average growth rate of 32.5% between 2005 and
2009. With a penetration rate of 96.3% however,
we can expect mobile expansion to start slowing
as early as 2010 with a forecasted single-digit
growth rate of 8.0%.
Ecuador is lagging well behind when it comes to
Internet. Its penetration rate is very low at 2.4%
and its growth has been stagnating in the last year
with only 17,000 new subscribers in 2009. The number
of Internet customers therefore reached 337,000
and the number of users 1.8 million at the end of
that year. The growth trend is not expected to increase
drastically in the next few years, as PC penetration
remains low and the poverty level is still high.
The broadband sector on the other hand has been
rising exponentially over the last 5 years, with
an average growth rate of 97.5%. In 2009 alone,
the number of broadband customers increased by 89.1%
to reach 295,000. At that time, broadband penetration
stood at 2.1% and represented 87.5% of all Internet
connections in the country. ‘If the current
growth trend continues, we can expect broadband
connections to represent 100% of Ecuador’s
Internet customers by the end of 2010’ HOT
TELECOM’s President Isabelle Paradis said.
Find out more about the Ecuador fixed, mobile and
Internet markets in HOT TELECOM’s new 32-page
Ecuador country profile: http://www.hottelecom.com/ec-copr.html