An item in Tuesday's Global Mobile Daily reminded me of comments I made back in August last year regarding one of the actors in Ecuador's mobile market, Alegro PCS, a state-owned CDMA MNO aligned with incumbent wireline operators Andinatel (which serves the Ecuadorean interior region) and Pacifictel (which offers services in the ten coastal provinces).
I noted back then that Alegro PCS was lagging far behind its two GSM rivals in terms of market share. At that time, I observed that according to Informa Telecoms & Media's World Cellular Information Service, Alegro's share of subscriptions shrank from 4.03% down to 3.00% in the period March 2008 to June 2008, losing further ground to Telefonica-backed Movistar Ecuador and América Móvil-owned Porta. Since then, the situation has worsened further for the state-backed cello, whose share of the market stood at just 1.31% by December last year, according to WCIS.
Tuesday's news concerned intervention which might save beleaguered Alegro from disappearing altogether. This comes in the form of reported offers for prospective strategic partnerships from Uruguay's Antel, and Venezuela's Movilnet, both of which are also owned by the Governments of their respective countries. For me, this is interesting in light of conversations I had in Caracas back in April 2008. I was visiting the Venezuelan capital as part of a tour intended to boost and diversify the participation at our Americas Com event, the latest iteration of which will take place at the end of June this year in Rio de Janeiro. In Caracas I got the impression that Movilnet and its parent company CANTV, entities renationalised by President Hugo Chávez's government in 2007, were looking hard at development partnerships with telcos in politically sympathetic states such as Cuba and, I think, Nicaragua. From what I heard in Caracas, it certainly sounded as though the Chávez Government intends to use CANTV and Movilnet to drive forward its social policies. I won't pretend to know as much about Ecuadorean politics as (the little) I have picked up regarding Venezuela. However, it is my understanding that Ecuador's Prsident Rafael Correa Delgado is a self-described "humanist and Christian of the left".
I am therefore not massively surprised to hear of Venezuela's state-owned telco coming to the aid of a similar company in what I assume to be a friendly country for President Chávez. Uruguay, too, is currently led by a left-leaning President, Tabaré Vázquez.
I came back from last April's trip with a slightly better understanding of life in South America, 75% of whose inhabitants now live under left-of-centre governments. I started to wonder about the links which might be forged bewtween these governments and how this would affect the region's telecoms landscape. The interest of Antel and Movilnet in coming to the rescue of troubled Alegro PCS looks like a development of this kind.
However, it might be the case that neither of these companies will become involved in the Ecuadorean MNO. Another interested party, according to the GMD story is Indonesia's Telekomunikasi Indonesia (Telkom).
We will know within 60 to 90 days, according to the report. Whichever company prevails, they will need to provide capital estimated at US$200 million to help improve operational efficiency at Alegro PCS.
This is all of interest to me because one of my final tasks here at Informa Telecoms & Media - before moving on to pastures new in March - is to pass on what I know about the Latin American telecoms scene to the colleagues gearing up for another successful Americas Com.
Showing posts with label Ecuador. Show all posts
Showing posts with label Ecuador. Show all posts
20 Aug 2008
Looking forward to hearing more on IPTV from carriers in CEE and Latin America
I read a Telecom Asia piece on the train into London this morning, which mulls over the idea of whether IPTV poses more questions than it currently offers answers. The writer asks whether it is "a rewarding new category, like SMS, or a dazzling non-event like the videophone? Is it more vendor snake oil, or an important new product? Is it purely defensive or will it one day deliver real income? Will it be overtaken by YouTube and online TV? Does IPTV even matter?"
I am not close enough to the discussion to presume to offer any answers of my own here, but I'm looking forward to my team and I gleaning the views of telcos on two continents next month. The first opportunity to do so will be my own trip to Rio de Janeiro to host our annual Americas Com conference and exhibition, 9-10 September. Later the same month, we're hosting the CEE Com event in Prague (17-18 September). At both conferences, we expect there to be a lot of talk around IPTV. In both cases we've made the effort to confirm the participation of triple-players from the cable space as well as telco carriers rolling out IPTV services.
We ran the Latin America event under the 'GSM Americas' banner for more than a decade, taking full advantage of the regional boom in mobile services and the tech vendors' desire to assembe big crowds of cellular carrier execs under one roof on an annual basis. For reasons I discussed last week, we've felt for a while now that it's imperative for us to broaden the appeal, bringing on board representatives of the purely wireline businesses, execs from integrated operators (i.e. with both fixed line and mobile network assets/services) whose brief covers the whole business - as well as our loyal crowd of MNO people. Certainly in terms of signing up a speaker panel that reflects this diversity, we have been successful. So as well as hearing from MNOs such as Movistar Chile, Claro Brasil, Iusacell and Ancel, delegates will draw lessons from wireline businesses such as Ecuador's ETAPA, Colombia's ETB Telecom and Bolivian telecoms co-ops COTEL and COTECO.
Not a day passes without my receiving more news of IPTV licensing wrangles around South America. So I am pleased that a number of the presentations in Rio will bear down on the business models, technology choices, regulatory enablers/inhibitors and more. Notable talks focused on this area will come from Mexico's Alestra and a cabler from that country, Cablecom.
In Prague, we've dedicted a good chunk of both conference days to discussing IPTV and telco-media convergence more broadly. Speakers addressing these themes will include:
I am not close enough to the discussion to presume to offer any answers of my own here, but I'm looking forward to my team and I gleaning the views of telcos on two continents next month. The first opportunity to do so will be my own trip to Rio de Janeiro to host our annual Americas Com conference and exhibition, 9-10 September. Later the same month, we're hosting the CEE Com event in Prague (17-18 September). At both conferences, we expect there to be a lot of talk around IPTV. In both cases we've made the effort to confirm the participation of triple-players from the cable space as well as telco carriers rolling out IPTV services.
We ran the Latin America event under the 'GSM Americas' banner for more than a decade, taking full advantage of the regional boom in mobile services and the tech vendors' desire to assembe big crowds of cellular carrier execs under one roof on an annual basis. For reasons I discussed last week, we've felt for a while now that it's imperative for us to broaden the appeal, bringing on board representatives of the purely wireline businesses, execs from integrated operators (i.e. with both fixed line and mobile network assets/services) whose brief covers the whole business - as well as our loyal crowd of MNO people. Certainly in terms of signing up a speaker panel that reflects this diversity, we have been successful. So as well as hearing from MNOs such as Movistar Chile, Claro Brasil, Iusacell and Ancel, delegates will draw lessons from wireline businesses such as Ecuador's ETAPA, Colombia's ETB Telecom and Bolivian telecoms co-ops COTEL and COTECO.
Not a day passes without my receiving more news of IPTV licensing wrangles around South America. So I am pleased that a number of the presentations in Rio will bear down on the business models, technology choices, regulatory enablers/inhibitors and more. Notable talks focused on this area will come from Mexico's Alestra and a cabler from that country, Cablecom.
In Prague, we've dedicted a good chunk of both conference days to discussing IPTV and telco-media convergence more broadly. Speakers addressing these themes will include:
- Nikolai Beckers, CEO, MAKEDONSKI TELEKOMUNIKACII, MACEDONIA
- Nedžad Rešidbegović, General Director, BH TELECOM, BOSNIA
- David Masat, CCO, České Radiokomunikace, Czech Republic
- Michal Táborský, Director of IPTV Services, TELEFÓNICA O2 CZECH REPUBLIC
- Jakub Brzeczkowski, TV/VOD director - EEMEA REGION - CONTENT DIVISION,
FRANCE TELECOM GROUP
Forced to choose between attending the Rio and Prague events, I have had to book my ticket for Brazil for entirely sensible business reasons. Cynical readers might think that I am ducking out the European autumn just to enjoy a few days of the South America spring. The thought never crossed my mind. None of the pictures I plan to post here from Rio will be of beaches or tourist sites, I promise. I shall only show you images of a packed conference room and exhibition area.
12 Aug 2008
Looking ahead to insights from Ecuador at this year's Americas Com
Yesterday's Cellular News arrived in my inbox, bringing to my attention another WiMAX deployment in Latin America, this time by Ecuadorian state-owned carrier, Pacifictel. Airspan are supplying the base stations and CPE. I would be interested to know if there are plans for Pacifictel's sister company Andinatel to select the same kind of equipment and offer similar services, mainly because of a few snippets my team picked up while trying to secure the participation of Ecuadorean telcos at our imminent Americas Com conference and exhibition (September 9-10, Rio de Janeiro). We try to avoid asking telco executives to talk on very generic subjects, preferring to link each prospective speaker with something genuinely novel and value adding for the hundreds of telecoms sector delegates we gather from across South and Central America.
In the case of these two state-owned telcos from one of only two countries in South America not to share a border with the host country of the conference (ten points for telling me the other one without using Wikipedia!), we learned that plans are afoot at least to investigate the logic and processes around merging what are currently quite separate businesses. In case it's not obvious from the companies' names, Andinatel serves the Ecuadorean interior region while Pacifictel offers services in the ten coastal provinces. The companies are also aligned with Alegro PCS, a CDMA mobile operator (also state-owned), which lags far behind its two GSM rivals in terms of market share. According to Informa Telecoms & Media's invaluable World Cellular Information Service, Alegro's share of subscriptions shrank from 4.03% down to 3.00% in the period March 2008 to June 2008, losing further ground to Telefonica-backed Movistar Ecuador and América Móvil-owned Porta, whose website seems to be announcing the availability of 3G services.
When talking to industry-watchers about what Andinatel and/or Pacifictel might add to an already compelling conference agenda, we picked up on merger talk. Confirmed by a Telegeography story, we learned about about reports in the country's La Hora newspaper detailing a strategic planning consortium/council which plans to design a unified corporate policy and manage the operators' infrastructure. These plans apparently include integrating the mobile business into a future merger.
Back in April, I had the considerable pleasure of visiting telcos in Argentina, Venezuela, Bolivia and Paraguay. In the latter two countries, we visited a number of cooperative-owned LECs and the state-owned incumbent fixed-line operator respectively. I was struck by the relatively modest scale of these organisations and wondered privately whether the Bolivian telecoms sector especially might not benefit from some level of consolidation. Currently, the competitive landscape in wireline looks like this: Entel is the incumbent long-distance carrier (and is associated with Entel Movil, an MNO), but the co-ops do better in terms of the local exchange market. Each major city/region is home to its own telecoms co-op. We visited two of the more significant ones away from the country's capital. Given that we've enjoyed some success in attracting the Bolivian co-ops to this year's Americas Com, I thought it might be instructive for them (and other relatively smaller telcos from similarly fragmented markets) to learn more about the proposed Andinatel-Pacifictel-Alergo merger.
While we remain unsure of whether any of this trio will be sending representatives, we did manage to secure the participation of ETAPA, a telco based in the country's third largest city, Cuenca. ETAPA General Director Boris Piedra will join the panel of speakers, speaking about the company's efforts to bridge the digital divide between the information society haves and have-nots. I really look forward to learning about this in more detail at the event - and I must admit, I'm also looking forward to another benefit of attending Americas Com in Rio - getting away from this thoroughly miserable on-off English summer...
In the case of these two state-owned telcos from one of only two countries in South America not to share a border with the host country of the conference (ten points for telling me the other one without using Wikipedia!), we learned that plans are afoot at least to investigate the logic and processes around merging what are currently quite separate businesses. In case it's not obvious from the companies' names, Andinatel serves the Ecuadorean interior region while Pacifictel offers services in the ten coastal provinces. The companies are also aligned with Alegro PCS, a CDMA mobile operator (also state-owned), which lags far behind its two GSM rivals in terms of market share. According to Informa Telecoms & Media's invaluable World Cellular Information Service, Alegro's share of subscriptions shrank from 4.03% down to 3.00% in the period March 2008 to June 2008, losing further ground to Telefonica-backed Movistar Ecuador and América Móvil-owned Porta, whose website seems to be announcing the availability of 3G services.
When talking to industry-watchers about what Andinatel and/or Pacifictel might add to an already compelling conference agenda, we picked up on merger talk. Confirmed by a Telegeography story, we learned about about reports in the country's La Hora newspaper detailing a strategic planning consortium/council which plans to design a unified corporate policy and manage the operators' infrastructure. These plans apparently include integrating the mobile business into a future merger.
Back in April, I had the considerable pleasure of visiting telcos in Argentina, Venezuela, Bolivia and Paraguay. In the latter two countries, we visited a number of cooperative-owned LECs and the state-owned incumbent fixed-line operator respectively. I was struck by the relatively modest scale of these organisations and wondered privately whether the Bolivian telecoms sector especially might not benefit from some level of consolidation. Currently, the competitive landscape in wireline looks like this: Entel is the incumbent long-distance carrier (and is associated with Entel Movil, an MNO), but the co-ops do better in terms of the local exchange market. Each major city/region is home to its own telecoms co-op. We visited two of the more significant ones away from the country's capital. Given that we've enjoyed some success in attracting the Bolivian co-ops to this year's Americas Com, I thought it might be instructive for them (and other relatively smaller telcos from similarly fragmented markets) to learn more about the proposed Andinatel-Pacifictel-Alergo merger.
While we remain unsure of whether any of this trio will be sending representatives, we did manage to secure the participation of ETAPA, a telco based in the country's third largest city, Cuenca. ETAPA General Director Boris Piedra will join the panel of speakers, speaking about the company's efforts to bridge the digital divide between the information society haves and have-nots. I really look forward to learning about this in more detail at the event - and I must admit, I'm also looking forward to another benefit of attending Americas Com in Rio - getting away from this thoroughly miserable on-off English summer...
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