El Salvador's Fixed and Mobile Data Markets Will Double by 2014

El Salvador's fixed and mobile data markets will double in size by 2014 as mobile data services, fixed broadband, and pay-TV drive growth, according to a new report from Pyramid Research. El Salvador ranks 12th in Latin America in terms of market size, with the telecom industry expected to generate $1.5 billion in 2009, notes Jose Magana, analyst and author of the report.

"Mobile services and broadband have been the engine for growth with penetration of the population closing at 100 percent and 2 percent, respectively, in 2008," he says. "Pyramid expects that the Salvadorian telecommunications markets will see most growth from mobile data services, fixed broadband, and pay-TV, all of which are underpenetrated segments as of 2009," he adds.

Data services will grow at a CAGR of 21 percent over the next five years with both fixed and mobile broadband posting double-digit expansion over the forecast period. "Mobile data services is expected to grow at a CAGR of 22.6 percent over the next five years, thanks to infotainment services such as music, ringtones, mobile video, and mobile Internet," Magana comments. "Pyramid anticipates operators will focus their efforts on promoting data services as 3G handsets will account for 36 percent of the total base by 2014 from 4 percent in 2009," he says.

The fixed market is showing steady signs of transformation toward broadband. "Broadband penetration will advance from 3.0 percent in 2009 to 7.7 percent in 2014, driven by a constant price decline pushed by the uptake of bundled packages," says Magana. The report finds that fixed operators are promoting triple and quadruple plays to encourage adoption and increase loyalty.

Posted to the site on 31st May 2009