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Puerto Rico's Telecom Market to Double its Data Revenue by 2014

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With the voice market shrinking, telecom operators face an opportunity to expand data services in Puerto Rico, as data revenue is expected to more than double by 2014 despite the deep economic contraction, according to the latest report from Pyramid Research.

Despite the deep economic contraction that Puerto Rico is facing, we see interesting opportunities in mobile data services, mobile content, and prepaid fixed services, notes Jose Magana, analyst at Pyramid Research and author of the report. "Several years of economic contraction and operators focusing on the more lucrative postpaid segment have constrained subscription's growth, but Pyramid expects penetration to advance to 84 percent by 2014," says Magana.

The recent incursion of big telecom operators, such as AT&T and T-Mobile, looking to expand beyond the U.S. in the mobile market may also put additional pressure on tariffs but will spur offerings in data services, such as mobile Internet and infotainment content. "Pyramid forecasts infotainment content to gain share in the total data market at the expense of messaging while connectivity revenue grows thanks to uptake in mobile Internet and datacards," says Magana. "Data as a percentage of ARPS will advance to more than 30 percent by 2014 from 18 percent in 2009," he adds.

In the fixed segment, Pyramid expects broadband to expand at a CAGR of 16.7 percent to generate $390 million by 2014. "Broadband will also encourage subscribers to migrate to cheaper VoIP plans and will hasten a decline in PSTN lines," Magana explains.

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Tags: cagr  Puerto Rico