A new research report has revealed that operators in Ecuador are aggressively expanding their 3.5G HSPA coverage because they are all looking to mobile broadband as a way to sustain future growth.
As per researchers, Ecuador’s telecommunications market is one of extremes. The country’s highly penetrated mobile market boasted a 107% mobile subscription rate at year-end 2010, while the fixed market remains at 14.5% narrowband penetration unfavorably with the Latin American average of 16.7%. Ecuador’s broadband penetration only 2.7%, less than half of the regional average of 7.2%.
They added that though under penetrated fixed, broadband and pay-TV markets might suggest faster growth rates, a sometimes complicated regulatory environment – as evidenced by the 2008 renewal of Porta and Movistar’s cellular licenses – as well as limited competition, will maintain the growth rates at modest levels.
Given Ecuador’s relatively low fixed broadband penetration, operators see mobile broadband as the primary vehicle for meeting unmet demand for broadband connectivity in Ecuador. Due to the limited coverage, low connection speeds and high tariffs researchers believe that mobile operators will take the bulk of the traditionally fixed broadband opportunity in Ecuador. Porta, Movistar and Alegro are all actively pushing their mobile broadband platforms as an alternative to fixed broadband.