Movistar will continue to earn highest ARPU in 2010 (Colombia)Colombia’s lowest mobile rates among the Latin American countries leads to higher penetration rate. A 50% cut in mobile termination charges further reduced the average price per minute of mobile calls by up to 30% in the first quarter of 2008. Drop has affected operator’s ARPU but the cut was partly paid off by increase traffic. América Móvil’s Comcel is the leading cellular company in Colombia, followed by Telefónica’s Movistar and Millicom-controlled Colombia Móvil (trading as Tigo).
Operators Subscribers (Million)
Comcel (AMX) 25.195
Movistar Colombia (TEF) 8.755
Tigo Colombia (MICC) 3.263
Notable highlights of Colombia Mobile Forecast include:
- The wireless penetration level in Colombia will continue increasing and it will reach 88.7% in 2010. The number of total subscribers in the country will increase from our projected 35.7 million in 2008 to 40.2 million in 2010.
- Comcel, will see a stabilization of its market share over the forecast period. Comcel’s market share by subscribers will be 65.8% in 2010. Tigo Columbia (the 3rd largest operator) will see an increase in its market share at the expense of Movistar Colombia (the 2nd largest operator). Tigo Colombia will see its market share increase from our projected 9.3% to 10.5% while Movistar’s market share decreases from 24.6% to 23.8% over the 2008-2010 forecast period.
- Back in 4Q06, Tigo Colombia replaced Movistar as the operator with the highest ARPU in Colombia. It is expected that this trend will continue during the forecast period, with Tigo Colombia registering the highest ARPU of US$ 14.49 per month in 2010. Comcel will continue to receive the lowest ARPU among operators in Colombia at US$ 11.03 per month in 2010. Overall, Colombia will be the market where consumers pay the second lowest ARPU in Latin America, after Peru, with average ARPUs of US$ 11.81 per month forecasted in 2010.
- Expecting relative stability in EBITDA margins across the operator space with Comcel having the highest EBITDA margins at 53.2% in 2010.
