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Mobile Telephony
ContributionLatin America
Caribbean Economies
toand the
This study was developed by Convergencia Research, from GSM Latin America Inc.’s request.
Neither GSM Latin America nor GSM Association nor their Members or Associate Members, are responsible for any use that might be made of this publication.
The views expressed in this publication are the sole responsibility of the author(s) and do not necessarily re� ect the views of GSM Latin America, GSM Association, their Members or Associate Members.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 3
Contents
FIRST PART: “OBJECTIVES AND METHODOLOGICAL APPROACHES”
I. IntroductionII. ObjetivesIII. ScopeIV. Theoretical Frame IV.I. Model “A”. Macroeconomical Impact.IV.II. Model “B”. Productive Structure and Value Chain.IV.III. Model “C”. Contribution to connectivity.
SECOND PART: “GLOBAL CONTRIBUTION OF MOBILE TELEPHONYTO LATIN AMERICA AND THE CARIBBEAN ECONOMIES”
1. Mobile Telephony Contribution to Gross Domestic Product2. Mobile Telephony Contribution to National investment 3. Mobile Telephony Contribution to combat In� ation 4. Mobile Telephony Contribution to Employment 5. Mobile Telephony Contribution to Connectivity
THIRD PART: “MOBILE TELEPHONY CONTRIBUTION TOLATIN AMERICA AND THE CARIBBEAN ECONOMIES BY COUNTRY”
1. Argentina2. Brazil3. Chile4. Colombia5. Ecuador6. Peru7. Uruguay8. Venezuela9. Costa Rica10. El Salvador11. Guatemala12. Panama13. Mexico14. Jamaica15. Puerto Rico16. Dominican Republic17. Trinidad & Tobago
ANNEXES:
I. Consulting and Data sources II. Working Group
4 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Objectives andMethodological Aproaches
6 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
First Part:
I. IntroductionThe Mobile Telephony industry has grown considerably during the last years. Its in� uence on all orders, both social and economic has become more important each day.
Latin America and the Caribbean are not unaware to this phenomenon in which Mobile Telephony has even exceeded Fixed Telephony in number of lines in service, covering geographical areas and economic segments until now excluded.
Beyond the social service provided by Mobile Telephony, governments have implanted in some cases tributary policies and speci� c regulations that partly limit mobile development. In other cases, governments have not considered the direct and indirect total bene� cial impact on GDP, on employment, on investments and on wealth given by this industry in each one of the nations to design policies that allow reaching all its growth potential.
II. ObjetivesAs mentioned earlier in the introduction, it is extremely important to be aware of Mobile Telephony contribution to Latin America and the Caribbean economies in order to de� ne policies tending to generate conditions that motivate the bene� cial impact of the industry.
Therefore, GSM Association Latin America has commissioned to an independent consultant a study on direct and indirect economic contribution of Mobile Telephony in 17 countries of Latin America and the Caribbean.
General objectives:
To estimate direct, concrete contribution from mobile services to each country’s • GDP and to show their relative importance comparing it with the economic sectors’ contribution of those same countries.To estimate the direct generation of • employment from mobile services.To estimate direct, concrete contribution from mobile services• to each country’s wealth and investment.To show the • indirect contribution generated in each country by mobile business value chain through its direct suppliers on employment, on beginning new businesses and on taxes collection.
The results in all the cases are presented by:
Country• Zones (South America, Central America & Mexico and the Caribbean). • Region (Total: 17 countries of Latin America and the Caribbean).•
III. ScopeThe study covers 17 countries from Latin America and the Caribbean; divided into eight from South America, � ve from Central America & Mexico and four countries from the Caribbean.
South AmericaArgentina
BrazilChile
ColombiaEcuador
PeruUruguay
Venezuela
Central America and MexicoCosta RicaEl SalvadorGuatemala
PanamaMexico
The CaribbeanJamaica
Puerto RicoDominican RepublicTrinidad & Tobago
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 7
Objectives and Methodological Aproaches
The 17 selected countries, as a whole, represent 96. 5% of GDP and the 90.0% of Latin America’s and the Caribbean population.
The eight Latin America’s selected countries represent 98. 7% of GDP and sum 95. 8% of the inhabitants. The � ve selected countries from Central America & Mexico represent 98. 4% of GDP and sum 91. 2% of the inhabitants. Finally, the four selected countries from the Caribbean represent 73. 5 % of GDP and the 44. 6 % of the region’s inhabitants excluding Cuba.
IV. Theoretical FrameIn order to ful� ll with the objective stated, two models have been designed to measure the economic contribution of Mobile Telephony; a third model has also been designed to measure contribution to connectivity.
IV.I. Model “A”. Macroeconomic Impact.
At the macroeconomic level the most representative variables have been studied in Model “A” to measure the Mobile Telephony contribution to the economies of each one of the countries covered by this study.
Investment (wealth)
Direct Employment
Gross Domestic Product Employment
Indirect Employment
Total Employment
Gross Fixed Capital Formation
Sales Demand for Goods
and Services to
other Industries
Mobile Telephony
National Economy
Zone Economy
Regional Economy: 17 countries of Latin America and the Caribbean
Inflation
Model “A”: Macroeconomic Impact of Mobile Telephony
8 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
First Part:
IV.I.I. Gross Domestic Product (GDP)
Why GDP? GDP represents the total value of all � nal goods and services produced within a country over a speci� ed period of time. It is the most important macro - economic magnitude for estimating an economy’s productive capacity.
What are our objectives? To understand the six-year period 2001 – 2006 of GDP behavior .• To know GDP conformation and identify the industries that contribute most in each country.• To estimate the Mobile Telephony contribution to GDP.• To compare the mobile industry contribution with other industries contribution to each country’s GDP.•
What methodologies were used and what sources were consulted?An economic analysis was carried out through the collection of each country’s Of� cial Statistics and Measurement.• Economic and � nancial information of the Industry’s main companies were collected.• The information was complemented with surveys and interviews to experts.• To assure comparisons and conclusions consistency among industries and countries, homogeneous currencies were • employed and data was normalized.
IV.I.II. National Investment
Why Gross Fixed Capital Formation?A good measurement of a country wealth is the Gross Fixed Capital Formation. This represents the acquisition of capital assets of an economy; understanding that these are the production means to produce other goods.
Fixed capital assets are: machinery and equipment, transport equipment, dwelling and non - residential buildings and its enlargements and/or improvements, infrastructure works, cultivated assets and intangible produced assets (software, patents, etc.).
What are our objectives?To know Gross Fixed Capital Formation of each country in the six -year period 2001 – 2006.• To estimate the capital assets that the Mobile Telephony industry uses and comparing it with the national investment • generated by the rest of the economy.To reason regarding Mobile Telephony contribution to national investment.•
What methodologies were used and what sources were consulted?An economic analysis was carried out through the collection of each country’s Of� cial Statistics and Measurement.• Economic and � nancial information of the Industry’s main companies were collected. • To assure comparisons and conclusions consistency among industries and countries, homogeneous currencies were • employed and data was normalized.
IV.I.III. In� ation
Why In� ation?The in� ation is a rise in the general level of prices of goods and services in an economy. To measure this increment, different indexes that measure the average growth of a basket of goods have been created. The Consumer Price Index (CPI) is the most worldwide used and disclosed measure which indicates the variation expressed in percentage in the average price of goods and services that a typical consumer acquires.
Most countries from Latin America and the Caribbean have suffered important periods of in� ation to the detriment of their economies.
Meanwhile, the strong competition among the mobile sector operators over the last years has resulted in a constant prices reduction of the service and its average revenue per user (ARPU) in those countries where general economy stability has existed; and much lower increases than those from the rest of the general basket of prices where in� ation has existed. Mobile prices and
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 9
Objectives and Methodological Aproaches
ARPU of Mobile Telephony have remained sFigure or even decreased in countries that have experienced relatively low in� ation rates.
On the other hand, in countries with signi� cant levels of in� ation the traf� c termination tariff from � xed to mobile has not followed the increment level that other goods and services observed. This has generated complications to companies that have experienced, as a consequence of in� ation, increments in their productive structures (incorporations of goods, expenses and wages) without the corresponding adjustment in their levels of revenues.
What are our objectives?To detail the CPI evolution of each country in the six- year period from 2001 - 2006. • To observe the CPI main components evolution in the same period.• To know the average prices evolution of prepaid minute and postpaid minute of mobile telephone service.• To know the ARPU evolution (Average Revenue per User). The monthly average revenue per user that a Mobile • Telephony company obtains. Revenues are composed by the number of billed minutes multiplied by its price. Then, the increase in ARPU may be generated by an increase in the number of minutes used by user or by the price modi� cation of those minutes. ARPU is a metric used worldwide and it uni� es concepts in order to make comparisons that involve Prices.To make comparisons between the increase in the average revenues per user (ARPU) and the rest of the economy • prices.To conclude about the cost behavior of mobile telephones with respect to In� ation.•
What methodologies were used and what sources were applied?A progressive economic analysis was carried out through the collection of statistical data generated by Governments of� cial organisms and by private studies.Regarding prices evolution of the mobile telephone service, as it was possible, the analysis was divided in prepaid and postpaid. Weighted averages were estimated for both prices based on the information provided by the companies and/or regulatory entities. Indexes and prices were homogenized to compare them among different industries and countries.
IV.I.IV. Employment
Why employment?Latin America and the Caribbean are world regions where unemployment levels still remain very high. The Mobile Telephony invation has generated employment to millions of people worldwide. It is essential to estimate how the industry contributes to unemployment mitigation through workforce demand.
What are our objectives?To estimate the number of people directly employed by Mobile Telephone companies.• To estimate the number of people undirectly employed by Mobile Telephone companie.•
What methodologies were used and what sources were consulted?Information provided by the Mobile Telephony main companies and representative companies of other industries, Mobile Telephony providers, was collected. The information was complemented with surveys and interviews to experts.
10 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
First Part:
IV.II. Model “B”. Productive Structure and Value Chain
End Users
Mobile Operators
Productive Goods Operating Expenses
Acces Hardware
Sites
Troncal Network
Systems
Terminal Equipments
Buildings
Other Goods
Access and Interconnection
Network Rental
Dealers
Advertising
Maintenance and Repairs
Suppliers
Other Expenses
Sales to End Users
Demand for Goods and Services to Providers
Taxes Productive Goods Operating Expenses Employment
Model “B”: Productive Structure and Value Chain
First Link of Value Chain
Why Productive Structure and Value Chain?Mobile Operators “Productive Structure” is de� ned as:
Investment in Productive Goods.• Operating Expenses (services) to develop their activity.• Their Human Resources (employment).•
The Value Chain of a Mobile Operator is de� ned as the interrelation that produces economic effects among:End users of mobile telephone service.• Mobile Operator.• Productive Goods and Services Providers that facilitate the development of the Mobile Telephony activity.• Employees.• Government.•
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 11
Objectives and Methodological Aproaches
Mobile Telephony demands goods and services to other sectors of the economy based on its Productive Structure. At the same time, these sectors demand goods and services to others, and so forth generating Value Chains that embrace the whole economy activity. The Value Chain link contribution generated specially by an industry is not directly observable by any macro - economic magnitude.
What are our objectives?Model “B” shows the Mobile Telephony contribution generated on other industries and economy sectors based on its Productive Structure and its Value Chain composition.
Speci� cally:What contribution does mobile telephony generate in the development of other industries from an economic • perspective? (Goods and Services Demand - OPEX and CAPEX). To quantify contribution to GDP from the Demand for goods and services perspective (OPEX and CAPEX).• What contribution does mobile telephony generate in the work force demand in other industries. •
What methodologies were used and what sources were consulted?An economic and � nancial study will be carried out regarding the application of analysis techniques of counFigure states.
Regarding the work process:The present study scope is limited to the analysis of the said � rst chain link. This is:•
- Productive Goods Providers: Network, Sites, Troncal Network, Systems, Telephones Equipment, Buildings, etc.- Services Providers that generate Operating Expenses: Interconnection and Access, Dealers, Advertising, Maintenance
and Repairs, etc. - Employees: This point is described and analyzed in Model “A” context - Macroeconomic Impact of Mobile Telephony.
However, the indirect employment generated by purchasing Goods and Services from its Suppliers is analyzed.The Mobile Telephony companies that operate in each country are identi� ed.• Considering the market share of these companies; in the analysis were included all those companies, that added, • explain more than 70% of each country’s Mobile Telephony market. The Productive Structure of each company was evaluated one by one.• Main Goods and Services Providers were detected and related with their respective industries.• From the Productive Structure the Value Chain generated by these companies is drawn and quanti� ed. This allows • understanding the interrelation among industries that Mobile Telephony proposes.Results were added at country level to standardize a Value Chain that represents all the companies.•
Regarding the data bases in which our study is sustained, these are the economic and � nancial information of the main Mobile Telephony companies and their Goods and Services Providers. Closed surveys were also carried out and reinforced through interviews to the companies’ responsibles.
12 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
First Part:
IV.III. Model “C”. Contribution to Connectivity
USERS
Mobile TelephonyFixed Telephony
Internet
Why Contribution to Connectivity?Today Mobile Telephony is giving services to population’s sectors and geographical areas of Latin America and the Caribbean where Fixed Telephony companies have not arrived. Therefore, it contributes to reduce the communication divide regarding facilities that today exists.
What are our objectives?The idea is to estimate the contribution to connectivity that today Mobile Telephony carries out and to compare it with other ways of communication used, as Fixed Telephony and Internet.
Speci� cally:To know the number of lines of Fixed Telephony users and the number of Mobile Telephony lines.• To know the number of Internet Connections.•
What methodologies were used and what sources were consulted?A quantitative economic study was carried out through statistics and of� cial data. Information provided by the companies and regulatory organisms of Mobile, Fixed Telephony and Internet were also used.
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
14 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
1. Mobile Telephony Contribution to Gross Domestic Product
1.1. Regional GDP EvolutionFigure 1.1.1. Region: Average Variation Rate Gross Domestic Product (Constant ) 2001-2006
Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -10,9% 8,8% 9,0% 9,2% 8,5% 25,2%Brazil 2,7% 1,1% 5,7% 2,9% 3,7% 17,1%Chile 2,2% 3,9% 6,0% 5,7% 4,0% 23,7%Colombia 1,9% 3,9% 4,9% 4,7% 6,8% 24,2%Ecuador 4,2% 3,6% 7,9% 4,7% 4,3% 27,3%Peru 5,2% 3,9% 5,2% 6,4% 8,0% 32,2%Uruguay -11,0% 2,2% 11,8% 6,6% 7,0% 16,0%Venezuela -8,9% -7,8% 18,3% 10,3% 10,3% 21,1%South America -1,8% 2,5% 8,6% 6,3% 6,6% 23,3%Costa Rica 2,9% 6,4% 4,3% 5,9% 7,9% 30,5%El Salvador 2,3% 2,3% 1,8% 2,8% 4,2% 14,1%Guatemala 3,9% 2,5% 3,2% 3,5% 4,9% 19,2%Panama 2,2% 4,2% 7,5% 6,9% 8,1% 32,4%Mexico 0,8% 1,4% 4,2% 2,8% 4,8% 14,6%Central America & Mexico 2,4% 3,4% 4,2% 4,4% 6,0% 22,2%Jamaica 1,1% 2,3% 0,9% 1,4% 2,6% 8,6%Puerto Rico 0,9% 0,1% 3,1% 0,3% 0,7% 5,1%Dominican Republic 5,0% -0,4% 2,7% 9,2% 10,7% 29,9%Trinidad & Tobago 7,9% 14,4% 8,8% 8,0% 12,0% 62,5%The Caribbean 3,7% 4,1% 3,9% 4,7% 6,5% 26,5%Average Region 0,7% 3,1% 6,2% 5,4% 6,4% 23,7%Source : Economic Commission for Latin America and the Caribbean Statistical (CEPAL- ECLAC) Organism and National Central Banks
As a whole, the region’s 17 countries under study represent 96.5% of all Latin America and the Caribbean Gross Domestic Product (GDP); In 2006 GDP growth averaged 6.4% in the region. Although, these are preliminary � gures presented by the Economic Commission for Latin America and the Caribbean (CEPAL), Central Banks and Of� cial Statistical Organisms of each one of the countries; the rate is considered to be very close to the real one.
The good news for the region is that it has experienced a growth rate for the third consecutive year higher than 5% and has considerable overcome the uncertainty and crisis years of this decade beginning. This happened in all Latin America, but Argentina, Venezuela and Uruguay were more deeply impacted.
The region simple average growth has generated an accumulated rate of 23.7% in the � ve-year period 2001-2006. Subtotals per zone show similar evolution indicators: Latin America increased 23. 3%, Central America and Mexico 22. 2% and the Caribbean 26. 5%.
This evolution in the region economies is not an isolated fact; on the contrary, it is produced in a worldwide generalized growth context. Although, the region growth rates are high as for their own historical development it is important to point out that are lower to those observed in other developing regions like the case of some Asian countries. Beyond the region’s good evolution, it can not be ignored the low growth rates registered by the two main economies of the area, Brazil and Mexico that, as a whole, represent approximately 63% of the Total Gross Product; situation that generates a smaller increment in the region.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 15
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 1.1.2. Region: Average Variation Rate Constant Gross Domestic Product 2001-2006
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks
23,7%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Trin
idad
& T
obag
o
Pana
ma
Peru
Cos
ta R
ica
Dom
inic
an R
ep.
Ecua
dor
Arge
ntin
a
Col
ombi
a
Reg
ion
Aver
age
Chi
le
Vene
zuel
a
Gua
tem
ala
Braz
il
Uru
guay
Mex
ico
El S
alva
dor
Jam
aica
Puer
to R
ico
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
The growth observed in some Latin American countries is outstanding. Argentina and Venezuela have generated very important growths after the crisis period. Growth rates higher than 8% in the case of Argentina were observed in the last four years of study. In 2004 Venezuela grew 18.3% to sustain increases higher than 10% in the years to come. It is also important to mention the sustained and sFigure growth of other countries with better accumulated evolution, although at lower annual rates, as the cases of Colombia, Ecuador and Peru.
The evolution of Panama and Costa Rica in Central America is outstanding. Both countries accumulated in six years growth rates higher than 30%. On the other hand, in the Caribbean; Trinidad & Tobago showed the most important growth of the zone (62. 5%) while Dominican Republic generated a rate close to 30%.
1.2. Regional GDP Composition by Activity Sector
Figure 1.2.1. Region: GDP Composition by Activity Sector 2001-2006% Participation 2001 2002 2003 2004 2005 2006
Agriculture, Forestry, fishing and Hunting 8,4% 8,0% 8,1% 7,9% 7,9% 8,0%Mining and Quarrying 4,8% 6,3% 6,7% 6,9% 6,7% 7,1%Manufacturing Industry 17,7% 17,0% 16,9% 17,1% 17,1% 17,1%Electricity, Gas and Water 2,6% 2,7% 2,6% 2,6% 2,6% 2,5%Construction 5,2% 5,3% 5,2% 5,3% 5,4% 5,4%Trade, Restaurant and Hotels 16,0% 15,6% 15,5% 15,7% 15,9% 15,4%Transport and Communications 9,3% 9,5% 9,7% 9,9% 10,3% 10,5%Financial and Business Services 15,8% 15,9% 15,6% 15,4% 15,4% 15,6%Personal Services and others 20,2% 19,8% 19,6% 19,2% 18,9% 18,4%Source : CEPAL (ECLAC) Statistical Organism and National Central Banks
The regional GDP composition by Activity Sector remained sFigure with no major changes in the six year period under analysis.
The manufacturing industry is still the most important economic sector. It contributed with 17.1% of the regional GDP in 2006; followed in the second place by Financial, Real State and Business Services (15.6%), and in the third place by Trade, Restaurants and Hotels (15.4%). More than 48% of regional Product is grouped among these three sectors. The category “Personal Services sector and others” considers the activity of national governments; its analysis has been excluded from this study.
16 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Mining and Quarrying are standed out among the sectors that have improved their participation in the Gross Regional Product; it has increased by 1.5 its activity participating with 4.8% in 2001 to 7.1% in 2006. On the other hand, Transport and Communication Services sector that includes the Mobile Telephony activity has grown 1.1 times participating with 10.5% of Regional Gross Product in 2006; it is the second sector that has increased most its contribution to GDP in Latin America over the last � ve years, behind mining and oil sectors. The Mobile Telephony taking off is the base of this phenomenon.
Figure 1.2.2. Region: Average Variation Rate of GDP by Activity Sector 2001-2006Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Agriculture, Forestry, Fishing and Hunting 0,3% 4,6% 2,0% 3,4% 3,1% 20,9%Mining and Quarrying -1,0% 9,1% 5,1% 2,7% 6,9% 26,6%Manufacturing Industry -0,2% 2,9% 6,2% 5,4% 7,7% 21,9%Electricity, Gas and Water 3,6% 2,1% 2,7% 3,8% 4,3% 19,6%Construction -1,5% 3,9% 6,1% 8,8% 13,8% 35,1%Trade, Restaurant and Hotels -1,8% 2,6% 7,4% 6,6% 6,8% 22,8%Transport and Communications 3,0% 4,9% 8,4% 8,8% 8,9% 37,5%Financial and Business Services 1,6% 2,2% 5,1% 5,4% 6,3% 23,3%Personal Services and others 1,2% 2,2% 3,1% 3,3% 3,6% 14,9%Source : CEPAL (ECLAC) Statistical Organism and National Central Banks
As it was mentioned, the simple accumulated average growth of the region has been of 23.7% in the six-year period, 2001-2006.The analysis per Activity Sector shows that Transport and Communications have generated the most signi� cant growth with an accumulated rate of 37.5%, even higher than the real state boom. The importance of this result lies in that the Mobile Telephony activity is included by this sector and it has grown more than 200% in this period like it is observed in the next chapters; it is the major engine of this industry’s added growth rate. The countries that have observed the highest accumulated growth in Transport and Communications are:
Costa Rica 71,4%Panama 63,2%Guatemala 49,6%Argentina 47,2%Venezuela 45,6%
Construction has been the second largest development sector registering a growth of 35.1%; although, the accumulated variation of the countries where this activity has grown most is much higher causing a true real estate impact and economic development. The following countries have registered the highest growth:
Trinidad & Tobago 83,8%Colombia 83,6%Panama 66,8%Argentina 65,9%Peru 46,5%
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 17
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
1.3. Mobile Telephony Contribution to Regional GDP The Mobile Telephony contribution to Gross Regional Product is analyzed in this chapter from a supply and demand perspective for goods and services to national economies.
Supply of goods and services includes the Total Sales that Mobile Telephony operators carried out (voice transmission, data, and added value services and handsets sale).
Demand for goods and services includes the Total Expenses incurred by the operators in order to carry out their operation (OPEX, the acronym in English for Operating Expenditure) and investment in � xed assets (CAPEX, the acronym in English for Capital Expenditures); it does not include amortization or depreciation, � nancial expenses (interest, expenses and commissions), neither taxes except for the Value Added Tax.
The analysis includes the operator companies that offered services between 2001 and 2006. The amounts of Sales (Supply) as OPEX and CAPEX (Demand) contain the Value Added Tax, that is to say, amounts at � nal consumer’s price in order to facilitate comparisons with � gures of GDP and Investment of each country.
Figure 1.3.1. Region: Evolution of Mobile Telephony Supply and Demand for Goods and Services 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
59.008
46.570
34.372
25.23920.64020.397
17.860 17.52221.515
30.334
51.286
43.139
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
2001 2002 2003 2004 2005 2006
US
$ M
illio
ns
Accumulated Supply ’01 to ‘06
206.225Accumulated
Demand ‘01 to ‘06
181.656
The Mobile Telephony contribution to Gross Regional Product was of approximately US $206.225 million from 2001 to 2006 through the provision of goods and services (Sales).
Total approximated sales in 2006 were US $59. 008 million versus US $20. 397 million in 2001. Therefore, in only six years the annual sales were multiplied 2.9 times; an increase of US $38.612 million.
The Mobile Telephony contribution to Gross Regional Product growth was of approximately US $181.656 million from goods and services Demand perspective (OPEX + CAPEX) from 2001 to 2006.
The total Demand in 2006 was US $51.286 million while in 2001 were US $17.860 million. The annual demand was multiplied 2.9 times reaching US $33.427 million in only six years similar to that of mobile telephony services Supply (total sales).
18 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 1.3.2. Region: Supply for Goods and Services (Sales) of Mobile Telephony 2001-2006US $ Millions 2001 2002 2003 2004 2005 2006 Acum.
Argentina 3.531 1.139 1.422 2.573 4.112 5.720 18.496Brazil 5.085 6.222 7.613 10.592 15.135 18.304 62.952Chile 998 1.260 1.441 1.732 1.908 2.813 10.152Colombia 541 734 935 1.626 2.776 3.672 10.285Ecuador 181 235 418 649 1.056 1.211 3.750Peru 533 625 786 909 1.012 1.303 5.169Uruguay s.d. 202 132 152 185 344 1.016Venezuela 1.747 1.097 1.094 1.517 2.704 3.849 12.008South America 12.616 11.514 13.841 19.752 28.888 37.217 123.828Costa Rica 395 425 482 508 565 735 3.109El Salvador 194 212 247 362 515 760 2.291Guatemala s.d. s.d. 327 620 1.089 1.325 3.360Panama 181 192 217 330 400 447 1.767Mexico 5.777 6.982 8.437 10.900 12.993 15.931 61.020Central America & Mexico 6.547 7.810 9.710 12.720 15.562 19.198 71.547Jamaica s.d. s.d. 242 257 266 299 1.065Puerto Rico 880 896 941 1.032 1.141 1.232 6.121Dominican Republic 309 350 414 486 550 859 2.968Trinidad & Tobago 44 70 91 125 163 203 696The Caribbean 1.234 1.317 1.687 1.900 2.120 2.593 10.850Total 20.397 20.640 25.239 34.372 46.570 59.008 206.225Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
From the total regional accumulated sales of US $206.225 million in the 2001-2006 period South America reported sales of US $123.828 million; Central America and Mexico of US $71.547 million and the Caribbean of US $10.850 million.
Figure 1.3.3. Region: Mobile Telephony Sales Ranking by country 2001-2006US $ Million Accum. %
Brazil 62.952 30,5%Mexico 61.020 29,6%Argentina 18.496 9,0%Venezuela 12.008 5,8%Colombia 10.285 5,0%Chile 10.152 4,9%6 Countries Subtotal 174.912 84,8%Region total 206.225 100,0%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
Six countries; Brazil, Mexico, Argentina, Venezuela, Colombia and Chile accumulate 84.8% of the total Mobile Telephony Sales in the region, while 60.1% of total sales were contributed by Brazil and Mexico together.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 19
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 1.3.4. Region: Demand for Goods and Services (OPEX + CAPEX) of Mobile Telephony 2001-2006US $ Million 2001 2002 2003 2004 2005 2006 Accum.
Argentina 2.789 911 1.046 2.221 3.073 5.048 15.088Brazil 4.221 5.053 6.185 9.988 16.039 18.760 60.246Chile 982 1.042 1.082 1.376 1.675 2.487 8.643Colombia 606 627 872 1.486 2.866 3.508 9.965Ecuador 187 194 342 558 1.018 1.063 3.363Peru 534 554 680 806 907 1.148 4.628Uruguay s.d. 190 123 151 184 331 978Venezuela 1.480 899 747 1.247 2.429 3.555 10.357South America 10.800 9.469 11.076 17.833 28.192 35.899 113.268Costa Rica 498 555 816 709 661 713 3.952El Salvador 204 207 200 311 431 663 2.016Guatemala s.d. s.d. 271 548 921 1.003 2.743Panama 127 129 149 223 302 335 1.265Mexico 5.124 6.003 7.411 8.915 10.626 10.358 48.436Central America & Mexico 5.952 6.894 8.847 10.706 12.941 13.072 58.412Jamaica s.d. s.d. 347 344 346 278 1.315Puerto Rico 807 802 815 933 1.055 1.134 5.546Dominican Republic 263 298 352 413 467 730 2.523Trinidad & Tobago 38 60 77 106 138 173 592Caribe 1.107 1.159 1.592 1.796 2.006 2.315 9.976Total 17.860 17.522 21.515 30.334 43.139 51.286 181.656Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
From the US $181.656 million total Demand carried out by Mobile Telephony in the region under the period of analysis; South America mobile sector consumed US $113. 268 million, Central America and Mexico US $58.412 million, and the Caribbean US $9.976 million.
Figure 1.3.5. Region: Accumulated Variation Ranking OPEX + CAPEX of Mobile Telephony by country 2001-2006US $ Million Accum. %
Brazil 60.246 33,2%Mexico 48.436 26,7%Argentina 15.088 8,3%Venezuela 10.357 5,7%Colombia 9.965 5,5%Chile 8.643 4,8%6 Countries Subtotal 152.735 84,1%Region total 181.656 100,0%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
Brazil and Mexico together, just like Sales Ranking, concentrate the highest participation of the regional Demand for goods and services with 59.8%. Also, the same six countries; Argentina, Venezuela, Colombia and Chile, together with Brazil and Mexico concentrate 84.1% of the region’s Mobile Telephony Demand.
20 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 1.3.6. Region: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks, Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
32,2%
34,4%37,2%
10,3%
18,3%
2,4%
26,9%
37,4%
17,2%
42,7%
6,4%5,4%6,2%3,1%0,7%0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
% Supply: Var. ’06 vs ‘01
211,4%
Demand: Var. ’06 vs ‘01
189,3%
Region GDP : Var. ’06 vs ‘01
23,7%
The simple average growth rate of Mobile Telephony supply for goods and services (Sales) in the region was 211.4% in the 2001-2006 period.
A growth rate of 189.3% was registered by the Demand for goods and services (OPEX + CAPEX) of Mobile Telephony to other sectors of the national economies.
In the same period, the whole region registered a growth rate of 23.7%. Compared to the region’s economy the growth of Mobile Telephony has been 9 times higher from the Supply perspective and 8 times from the Demand perspective.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 21
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 1.3.7. Region: Accumulated Average Variation Rate of Mobile Telephony, GDP and Sectors
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks, Reports and Balances of Companies,
Regulatory Organisms and Convergencia Research estimations
37,5% 35,1%26,6% 23,7% 23,3% 22,8% 21,9% 20,9% 19,6%
211,4%
0,0%
50,0%
100,0%
150,0%
200,0%
250,0%
Mob
ileTe
leph
ony
Tran
spor
t &C
omm
unic
atio
ns
Con
stru
ctio
n
Min
ing
Reg
ion
GD
P
Fina
ncia
l &Bu
sine
ss S
ervs
.
Trad
e
Man
ufac
turin
g
Agric
ultu
re,
Hun
ting,
etc
Publ
ic S
ervi
ces
Acc
umul
ated
Var
iatio
n %
'06
vs. '
01
In the Figure above the variation rate of Mobile Telephony Supply is compared with the rates generated by the activity sectors, component of Gross Regional Product. It is observed that Mobile Telephony occupies by far the � rst place registering a rate of 211.4%.
Transport and Communications sector is located in second place registering a 37.5% rate. It is necessary to point out that Mobile Telephony activity is concentrated within this sector what explains its growth.
The explosive growth of Mobile Telephony does not have any comparison with that happened in the rest of the region’s activity sectors turning the mobile industry into a great generating source of social and economic development for the region in the present and in the next years.
22 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 1.3.8. Region: Average Annual Variation Rate of Mobile Telephony Sales and GDP 2001-2006Variación Anual % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -67,7% 24,9% 80,9% 59,8% 39,1% 62,0%Brazil 22,4% 22,4% 39,1% 42,9% 20,9% 260,0%Chile 26,3% 14,4% 20,2% 10,2% 47,4% 182,0%Colombia 35,8% 27,4% 74,0% 70,7% 32,3% 579,2%Ecuador 29,8% 77,6% 55,3% 62,6% 14,7% 567,6%Peru 17,2% 25,8% 15,7% 11,3% 28,7% 144,3%Uruguay 1 s.d. -34,5% 15,0% 21,4% 86,5% 70,5%Venezuela -37,2% -0,3% 38,8% 78,2% 42,4% 120,3%South America 3,8% 19,7% 42,4% 44,6% 39,0% 248,2%Costa Rica 7,6% 13,4% 5,5% 11,2% 30,1% 86,1%El Salvador 9,1% 16,7% 46,3% 42,3% 47,6% 291,1%Guatemala 2 s.d. s.d. 89,7% 75,7% 21,7% 305,6%Panama 5,8% 13,3% 51,9% 21,3% 11,8% 147,0%Mexico 20,9% 20,8% 29,2% 19,2% 22,6% 175,8%Central America & Mexico 10,8% 16,1% 44,5% 33,9% 26,8% 201,1%Jamaica 2 s.d. s.d. 6,5% 3,6% 12,3% 23,9%Puerto Rico 1,8% 5,0% 9,7% 10,6% 7,9% 40,0%Dominican Republic 13,3% 18,3% 17,3% 13,1% 56,3% 177,6%Trinidad & Tobago 59,4% 28,7% 37,9% 30,2% 25,0% 360,5%The Caribbean 24,8% 17,3% 17,8% 14,4% 25,4% 150,5%Average Region 10,3% 18,3% 37,2% 34,4% 32,2% 211,4%(1) Uruguay’s accumulated variation corresponds to '06 vs. '02 period(2) Guatemala’s and Jamaica’s accumulated variation correspond to '06 vs. '03 periodSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
Although, the simple average growth rate of the region was 211.4%, important variations are observed among the different areas and even among countries; South America showed an increment rate of 248.2%, Central America and Mexico of 201.1% and the Caribbean of 150.5%.
Figure 1.3.9. Region: Accumulated Variation Ranking of Mobile Telephony Sales by country 2001-2006Accumulated Variation % '06 vs. '01
Colombia 579,2%Ecuador 567,6%Trinidad & Tobago 360,5%Guatemala 1 305,6%El Salvador 291,1%Brazil 260,0%6 Countries Average 394,0%Region Average 211,4%(1)Guatemala’s accumulated variation correspond to '06 vs. '03 periodSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The Mobile Telephony growth in the region is amazing. However, in some countries it is even higher. In the cases of Colombia and Ecuador, the growth almost triplicated the average region with rates of 579.2% and 567.6% accumulated in � ve years.
It is important to point out the 260% growth observed in Brazil, since this country is the region main economy regarding GDP, Population and even the country that contributes most to the regional Mobile Telephony Sales.
Although Argentina is not listed in the ranking it is an interesting case, since in the � ve-year period 2002-2006 after the devaluation crisis it has registered a growth of 402.2%; it is the third country with higher Mobile Telephony Sales in the region.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 23
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 1.3.10. Region: Average Annual Variation Rate OPEX + CAPEX of Mobile Telephony and GDP 2001-2006Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -67,3% 14,9% 112,2% 38,4% 64,2% 81,0%Brazil 19,7% 22,4% 61,5% 60,6% 17,0% 344,5%Chile 6,1% 3,9% 27,2% 21,8% 48,5% 153,3%Colombia 3,4% 39,1% 70,5% 92,8% 22,4% 478,7%Ecuador 3,6% 76,4% 63,0% 82,4% 4,4% 467,4%Peru 3,7% 22,7% 18,6% 12,6% 26,5% 114,9%Uruguay 1 s.d. -35,4% 23,5% 21,4% 80,4% 74,6%Venezuela -39,3% -17,0% 67,0% 94,8% 46,3% 140,1%South America -10,0% 15,9% 55,4% 53,1% 38,7% 231,8%Costa Rica 11,5% 47,0% -13,2% -6,7% 7,8% 43,2%El Salvador 1,3% -3,1% 55,3% 38,4% 53,8% 224,4%Guatemala 2 s.d. s.d. 102,0% 68,2% 8,9% 270,1%Panama 1,7% 15,7% 49,8% 35,2% 11,1% 164,9%Mexico 17,2% 23,5% 20,3% 19,2% -2,5% 102,2%Central America & Mexico 7,9% 20,8% 42,9% 30,9% 15,8% 160,9%Jamaica 2 s.d. s.d. -1,1% 0,7% -19,7% -20,0%Puerto Rico -0,6% 1,7% 14,5% 13,1% 7,6% 40,6%Dominican Republic 13,3% 18,3% 17,3% 13,1% 56,3% 177,6%Trinidad & Tobago 59,4% 28,7% 37,9% 30,2% 25,0% 360,5%The Caribbean 24,0% 16,2% 17,2% 14,3% 17,3% 139,7%Region Average 2,4% 17,2% 42,7% 37,4% 26,9% 189,3%(1) Uruguay’s accumulated variation corresponds to '06 vs. '02 period(2) Guatemala’s and Jamaica’s accumulated variation correspond to '06 vs. '03 periodSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
From the Demand perspective signi� cant variations by area and by country are also observed regarding the growth average of 189.3%: South America generated an accumulated rate of 231.8%, Central America and Mexico of 160.9% and the Caribbean of 139.7%.
Figure 1.3.11. Region: Accumulated Variation Ranking of Mobile Telephony OPEX + CAPEX by country 2001-2006Accumulated Variation % '06 vs. '01
Colombia 478,7%Ecuador 467,4%Trinidad & Tobago 360,5%Brazil 344,5%Guatemala 1 270,1%El Salvador 224,4%6 Countries Average 357,6%Region Average 189,3%1) Guatemala’s accumulated variation corresponds to '06 vs. '03 periodSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The conclusion is similar to what happened in the Sales analysis. The average rates in the continent were high, but these were thoroughly exceeded by some countries. Colombia and Ecuador almost triplicated the region’s growth average with rates of 478.7% and 467.4% accumulated in � ve years.
In Brazil, the region’s main economy, Mobile Telephony increased its Demand levels for goods and services in 344.5%. Argentina, the third country regarding Supply and Demand of Mobile Telephony registered a growth of 454.1% in the � ve-year period after the devaluation crisis (2002-2006).
24 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 1.3.12. Region: Mobile Telephony as percentage of GDP 2001-2006
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
1,3%1,6%
1,9%2,1%
2,4%
1,2%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
2001 2002 2003 2004 2005 2006
% P
artic
ipat
ion
of G
DP
In 2001, the Mobile Telephony activity in the region was 1.2% of Gross Domestic Product. In 2006, it was duplicated to 2,4%.
Figure 1.3.13. Region: Mobile Telephony as porcentage of GDP 2001-2006Participation % 2001 2002 2003 2004 2005 2006
Argentina 1,3% 1,1% 1,1% 1,7% 2,2% 2,7%Brazil 0,9% 1,2% 1,4% 1,6% 1,7% 1,9%Chile 1,4% 1,9% 1,9% 1,8% 1,6% 1,9%Colombia 0,7% 0,9% 1,2% 1,7% 2,3% 2,7%Ecuador 0,9% 0,9% 1,5% 2,0% 2,9% 3,0%Peru 1,0% 1,1% 1,3% 1,3% 1,3% 1,4%Uruguay s.d. 1,6% 1,2% 1,2% 1,1% 1,8%Venezuela 1,4% 1,2% 1,3% 1,3% 1,9% 2,1%South America 1,1% 1,2% 1,4% 1,6% 1,9% 2,2%Costa Rica 2,4% 2,5% 2,8% 2,7% 2,8% 3,3%El Salvador 1,4% 1,5% 1,6% 2,3% 3,0% 4,2%Guatemala s.d. s.d. 1,5% 2,6% 4,0% 4,3%Panama 1,5% 1,6% 1,7% 2,3% 2,6% 2,6%Mexico 0,9% 1,1% 1,3% 1,6% 1,7% 1,9%Central America & Mexico 1,6% 1,7% 1,8% 2,3% 2,8% 3,2%Jamaica s.d. s.d. 2,9% 2,9% 2,7% 2,9%Puerto Rico 1,3% 1,3% 1,3% 1,3% 1,4% 1,4%Dominican Republic 1,3% 1,4% 2,1% 2,2% 1,6% 2,2%Trinidad & Tobago 0,5% 0,8% 0,8% 1,0% 1,1% 1,1%The Caribbean 1,0% 1,1% 1,8% 1,9% 1,7% 1,9%Region Average 1,2% 1,3% 1,6% 1,9% 2,1% 2,4%Source : CEPAL (ECLAC) Statistical Organism and National Central Banks Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The Figure shows that the participation average is 2.4% by region, but in some countries this ratio exceeds the 3.0% like Guatemala, El Salvador, Costa Rica and Ecuador cases.
Among the countries that produce 86.0% of the region Gross Product (Brazil, Mexico, Argentina, Venezuela, Chile and Colombia), the Mobile Telephony participation rate is: 2.7% for Argentina and Colombia; 2.1% for Venezuela; and 1.9% for Brazil, Mexico and Chile.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 25
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
2. Mobile Telephony Contribution to National Investment
2.1. Regional Investment Evolution
Figure 2.1.1. Region: Average Investment Percentage of GDP 2001-2006Investment % / GDP 2001 2002 2003 2004 2005 2006
Argentina 14,2% 12,0% 15,1% 19,2% 21,5% 20,3%Brazil 17,0% 16,4% 15,3% 16,1% 16,3% 16,2%Chile 20,7% 20,3% 20,1% 19,1% 20,6% 20,2%Colombia 13,6% 14,5% 16,5% 18,4% 20,8% 18,5%Ecuador 21,4% 23,3% 21,3% 21,6% 21,9% 21,9%Peru 18,6% 17,5% 17,8% 17,9% 18,8% 18,1%Uruguay 12,5% 10,1% 9,4% 11,3% 13,1% 13,1%Venezuela 24,1% 21,9% 15,5% 18,3% 20,2% 20,0%South America 17,8% 17,0% 16,4% 17,7% 19,2% 18,5%Costa Rica 18,3% 18,9% 19,2% 18,6% 19,0% 18,8%El Salvador 16,4% 16,6% 16,7% 15,6% 15,4% 16,1%Guatemala 18,3% 19,3% 18,7% 18,3% 18,3% 18,6%Panama 15,2% 13,6% 17,1% 16,6% 16,8% 15,8%Mexico 20,0% 19,3% 18,9% 19,6% 19,3% 19,4%Central America & Mexico 17,6% 17,5% 18,1% 17,8% 17,8% 17,8%Jamaica 29,1% 31,6% 29,7% 31,4% 29,8% 30,3%Puerto Rico 16,9% 15,9% 15,2% 15,1% 14,4% 14,1%Dominican Republic 18,9% 19,4% 15,5% 16,1% 13,1% 14,9%Trinidad & Tobago 19,4% 19,2% 18,6% 17,4% 16,5% 18,2%The Caribbean 21,1% 21,5% 19,7% 20,0% 18,5% 19,4%Region Average 18,6% 18,4% 17,8% 18,4% 18,6% 18,6%Source : CEPAL (ECLAC) Statistical Organism and National Central Banks Reports
The relationship between national Investment and Gross Domestic Product (GDP) is analyzed in this chapter; that is what percentage of GDP is destined by each one of the countries to invest in Capital expenditures (Productive Assets).
Practically, the relationship between Investment and GDP has not varied from 2001 to 2006; average levels of 18.6% have been maintained for the whole region.
26 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
2.2. Mobile Telephony Investment Evolution (CAPEX)
Figure 2.2.1. Region: Mobile Telephony Investment Evolution (CAPEX) 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
3.7063.245
4.423
5.628
8.962
9.868
0
2.000
4.000
6.000
8.000
10.000
12.000
2001 2002 2003 2004 2005 2006
US
$ M
illio
ns
CAPEX : Accum. '01 to '06.
US$ 35.833
Figure 2.2.2. Region: Mobile Telephony Investment (CAPEX) 2001-2006US $ Millions 2001 2002 2003 2004 2005 2006 Accum.
Argentina 424 114 48 366 439 533 1.923Brazil 870 989 1.219 1.926 3.380 3.983 12.366Chile 315 200 171 269 398 655 2.009Colombia 217 83 262 323 840 905 2.630Ecuador 27 40 78 130 231 232 738Peru 115 168 154 150 207 276 1.069Uruguay s.d. 59 33 47 43 64 247Venezuela 430 238 85 196 469 795 2.213South America 2.398 1.893 2.050 3.406 6.006 7.443 23.195Costa Rica 264 298 521 375 352 270 2.081El Salvador 54 27 20 54 70 123 348Guatemala s.d. s.d. 51 133 198 283 665Panama 24 19 21 36 49 45 193Mexico 743 759 1.341 1.205 1.791 1.224 7.063Central America & Mexico 1.085 1.104 1.955 1.803 2.460 1.944 10.351Jamaica s.d. s.d. 178 146 142 66 531Puerto Rico 171 185 165 182 248 256 1.207Dominican Republic 46 53 62 73 82 129 445Trinidad & Tobago 7 11 14 19 24 30 104The Caribbean 224 249 418 419 497 481 2.288Total 3.706 3.245 4.423 5.628 8.962 9.868 35.833Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The Mobile Telephony operators have invested US $35.833 million in Capital Expenditure (CAPEX) in the region over the last six years (2001-2006).
In 2006, approximated total Investments amounted to US $9.868 million while in 2001 were US $3.706 million. In only six years Annual investments were multiplied 2.7 times increasing US $6.162 million.
From the region’s total Investments in Mobile Telephony, investment in South America totalled US $23.195 million; in Central America and Mexico US $10.351 million; and in the Caribbean US $2.288 million.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 27
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 2.2.3. Region: Investment/Mobile Telephony Sales vs. Investment/GDP Comparison relationship 2001-2006
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
18,6%18,4%
17,8%
18,4%18,6% 18,6%
24,0%23,7%
20,2%
22,6%
23,1%
19,0%
15,0%
16,0%
17,0%
18,0%
19,0%
20,0%
21,0%
22,0%
23,0%
24,0%
25,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment / GDP %CAPEX / Sales
In the � gure above it is observed the relationship between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relationship of Investment as percentage of Gross Regional Product for 2001-2006 period.
On average, the Mobile Telephony industry has invested 22.1% of its Sales, while the region total has paid 18.4% of its Gross Product. The conclusion is that the Mobile Telephony investments are higher, in proportion, than those carried out by the rest of the national economies. This tendency is even more remarkable in the years 2001, 2003, 2004 and 2005.
28 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 2.2.4. Region: Average Investment Percentage over Mobile Telephony Sales 2001-2006CAPEX % / Sales 2001 2002 2003 2004 2005 2006 Average
Argentina 12,0% 10,0% 3,4% 14,2% 10,7% 9,3% 9,9%Brazil 17,1% 15,9% 16,0% 18,2% 22,3% 21,8% 18,5%Chile 31,6% 15,9% 11,9% 15,5% 20,8% 23,3% 19,8%Colombia 40,1% 11,4% 28,0% 19,8% 30,2% 24,6% 25,7%Ecuador 15,0% 17,1% 18,7% 20,0% 21,9% 19,2% 18,6%Peru 21,5% 26,9% 19,6% 16,5% 20,4% 21,1% 21,0%Uruguay s.d. 29,3% 25,0% 31,1% 23,5% 18,6% 25,5%Venezuela 24,6% 21,7% 7,8% 12,9% 17,4% 20,6% 17,5%South America 23,1% 18,5% 16,3% 18,5% 20,9% 19,8% 19,5%Costa Rica 67,0% 70,2% 108,2% 73,8% 62,3% 36,7% 69,7%El Salvador 27,8% 12,8% 8,0% 15,0% 13,6% 16,2% 15,6%Guatemala s.d. s.d. 15,8% 21,5% 18,2% 21,3% 19,2%Panama 13,0% 10,1% 9,7% 10,8% 12,3% 10,0% 11,0%Mexico 12,9% 10,9% 15,9% 11,1% 13,8% 7,7% 12,0%Central America & Mexico 30,2% 26,0% 31,5% 26,5% 24,0% 18,4% 26,1%Jamaica s.d. s.d. 73,5% 56,6% 53,3% 21,9% 51,3%Puerto Rico 19,4% 20,7% 17,6% 17,6% 21,7% 20,8% 19,6%Dominican Republic 15,0% 15,0% 15,0% 15,0% 15,0% 15,0% 15,0%Trinidad & Tobago 15,0% 15,0% 15,0% 15,0% 15,0% 15,0% 15,0%The Caribbean 16,5% 16,9% 30,3% 26,1% 26,2% 18,2% 22,4%Region Average 23,7% 20,2% 24,0% 22,6% 23,1% 19,0% 22,1%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The regional average of Investment in relation with Sales in the 2001-2006 period is about 22.1%, but variations exist among zones: South America applied 19.5% of its Sales; Central America and Mexico destined 26.1%; and the Caribbean dedicated 22.4%.
The countries level analysis is quite attractive, since an important dispersion exists regarding the ratio. This is explained depending on the industry’s development moment in each country, as well as geographic and social factors, as size and population density.
Costa Rica is the leader in this industry; only one Mobile Telephony company of state property exists. This country has dedicated 69.7% of its last six years Sales to carry out investments.
Costa Rica is followed by Jamaica in level of investment; 51.3% of its sales have been destined to investment contrary to Costa Rica case, since the government deregulated the industry incorporating new players.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 29
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
3. In� ation vs. Mobile Telephony ARPU Evolution
3.1. Evolution of CPI
Figure 3.1.1. Region: Average Variation Rate of Consumer Price Index 2001-2006Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina 25,9% 13,4% 4,4% 9,7% 10,9% 81,3%Brazil 9,9% 8,2% 6,6% 5,1% 2,8% 36,8%Chile 2,8% 1,1% 2,4% 3,7% 2,6% 13,2%Colombia 7,0% 6,5% 5,5% 4,9% 4,5% 31,7%Ecuador 9,4% 6,1% 1,9% 3,5% 2,9% 25,9%Peru 1,5% 2,5% 3,5% 1,5% 1,1% 10,5%Uruguay 14,0% 19,4% 9,2% 4,7% 6,4% 65,4%Venezuela 31,2% 27,1% 19,2% 14,4% 17,0% 165,8%South America 12,7% 10,5% 6,6% 5,9% 6,0% 53,8%Costa Rica 9,7% 9,9% 13,1% 14,1% 6,3% 65,3%El Salvador 2,8% 2,5% 5,4% 4,3% 4,9% 21,4%Guatemala 6,3% 5,9% 9,2% 8,6% 5,8% 41,2%Panama s.d. 0,1% 0,4% 2,9% 3,5% 7,0%Mexico 5,7% 4,0% 5,2% 3,3% 4,1% 24,3%Central America & Mexico 6,1% 4,5% 6,7% 6,6% 4,9% 31,8%Jamaica 7,3% 14,1% 13,7% 12,9% 5,8% 66,2%Puerto Rico 6,1% 7,9% 11,9% 13,8% 14,7% 67,2%Dominican Republic 5,2% 27,4% 51,5% 4,2% 7,6% 127,7%Trinidad & Tobago 4,2% 3,8% 3,7% 6,8% 8,3% 20,0%The Caribbean 5,7% 13,3% 20,2% 9,4% 9,1% 70,3%Region Average 9,3% 9,4% 9,8% 6,9% 6,4% 51,2%Source : CEPAL (ECLAC) Statistical Organism and National Central Banks
The simple accumulated average In� ation for the region in the period 2001-2006 has been of 51.2%. In the � rst three years under analysis, annual rates higher than 9% are observed while in the last two years these rates decreased locating between 6% and 7%.
The South America average of In� ation is very similar to the regional average, with a rate of 53.8%. Central America and Mexico collaborate with a rate much lower than the average (31.8%), but the Caribbean observes a higher rate (70.3%).
Regarding analysis by country, Venezuela confronted the most severe in� ationary process in the region with an accumulated rate of 165.8% in the � ve considered years. In the Caribbean, the Dominican Republic experienced a 127.7% accumulated variation of its prices. In the third place is Argentina that as consequence of the strong devaluation of its currency at the beginning of 2002 it carried out a prices readjustment that takes it to a general increment of 81.3%.
Panama is among the countries that less in� ation registered showing an accumulated rate of only 7%. Then, Peru and Chile cases are observed maintaining very moderate price increases of 10.5% and 13.2% respectively in the � ve years total.
30 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
3.2. Mobile Telephony ARPU Evolution
Figure 3.2.1. Region: Average Variation Rate of Mobile Telephony ARPU 2001-2006Variación Anual % 2002 2003 2004 2005 2006 Accum.Var.
Argentina -67,8% 18,8% 13,0% -4,7% -13,3% -64,3%Brazil -25,2% 0,2% -4,6% 1,0% 7,6% -22,3%Chile -11,7% -4,4% -4,8% 3,8% 16,7% -2,7%Colombia -7,4% -21,4% -7,4% -1,4% -1,9% -34,8%Ecuador -10,2% -7,2% -8,0% -5,1% -18,6% -40,8%Peru 1,5% 2,5% 3,5% 1,5% 1,1% 10,5%Uruguay -11,3% 10,7% 8,9% -7,1% 0,0% -0,7%Venezuela -23,6% -16,0% 30,2% -7,5% -20,2% -38,3%South America -19,5% -2,1% 3,9% -2,4% -3,6% -24,2%Costa Rica -4,4% -28,1% -23,1% 0,8% 0,0% -46,7%El Salvador 1 s.d. s.d. -25,7% 2,0% -1,0% -25,0%Guatemala 2 s.d. s.d. s.d. -6,6% 3,2% -3,7%Panama 3 s.d. -6,9% -5,2% -21,3% -14,3% -40,4%Mexico 3 s.d. 2,0% 1,6% 0,4% 0,4% 4,4%Central America & Mexico -4,4% -11,0% -13,1% -4,9% -2,3% -22,3%Jamaica 4 -4,4% 18,6% -14,3% 0,0% s.d. -2,8%Puerto Rico -0,7% 0,9% 2,6% 1,7% 0,4% 4,8%Dominican Republic 5 s.d. s.d. s.d. s.d. s.d. s.d.Trinidad & Tobago -6,3% -12,1% 0,0% -19,7% -12,6% -42,2%The Caribbean -3,8% 2,5% -3,9% -6,0% -6,1% -13,4%Region Average -14,3% -3,0% -2,2% -3,9% -3,5% -21,6%(1) El Salvador’s accumulated variation corresponds to '06 vs. '03 period(2) Guatemala’s accumulated variation corresponds to '06 vs. '04 period(3) Panama’s and Mexico’s accumulated variation correspond to '06 vs. '02 period(4) Jamaica’s accumulated variation corresponds to '05 vs.'01 period(5) There is no prices information from Dominican RepublicThe accumulated variation from the rest of the countries corresponds to '06 vs.'01 period.Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The accumulated variation rate of Mobile Telephony average revenues per user (ARPU) for the region in the 2001-2006 period has been negative, 21.6%. The higher decrease is observed at the beginning of the period with a de� ationary rate of 14.3%, but it remains negative under the whole period of analysis.
The Latin America decrease average is even higher than the regional rate registering 24.2%. On the other hand, Central America and Mexico show a negative rate of 22.3%, while the Caribbean also observes a negative rate of 13.4%.
Regarding analysis by country, the most striking case was Argentina whose devaluation in 2002 caused a price decrease of 67.8%, tendency that could not be reverted in the following years, despite the currency partial revaluation and growth closing the period with an average decrease rate of 64.3%. Then, Trinidad & Tobago, Ecuador, Costa Rica, Panama and Venezuela show negative rates close to 40%.
Puerto Rico and Mexico are among the countries that were able to maintain their prices average revenues per user that even showed an increment over the 4%. While, Uruguay, Jamaica and Chile observed very slightly decreases.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 31
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 3.2.2. Region: Accumulated Average Variation Rate of Mobile Telephony ARPU and CPI 2001-2006
Note: El Salvador’s accumulated variation of Mobile Telephony Price corresponds to '06 vs. '03 periodGuatemala’s corresponds to '06 vs. '04 period; Panama’s and Mexico’s corresponds to '06 vs. '02 periodJamaica’s corresponds to '05 vs. '01 period. the rest of the countries corresponds to '06 vs. '01 period.Source : CEPAL (ECLAC) Statistical Organism and National Central Banks, Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
-170,0%
-120,0%
-70,0%
-20,0%
30,0%
80,0%
130,0%
Ven
ezue
la
Arg
entin
a
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Reg
ion
Ave
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Pan
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El S
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Gua
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Mex
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Chi
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Per
u
Acc
umul
ated
Var
iatio
n %
'06
vs. '
01
Mobile Telephony Var.: - 21,6%
CPI Var.: + 51,2%
As it was previously observed, most of the region’s countries have tolerated signi� cant in� ation levels in their deteriorated economies. Meanwhile, the strong competition that the Mobile Telephony industry has shown among operators in the last years has resulted in a constant decrease of average revenues per user.
From the combination between the variation rate of CPI (in� ationary) and the variation rate of the Mobile Telephony ARPU (de� ationary in most of the countries) the countries that worst combination has observed are those in the � gure above: Mobile Telephony in Venezuela faced an accumulated in� ation of 165.8%, while its Prices decreased to 38.3%. On the other hand, Argentina observed an in� ation of 81.3% in the same period in which Mobile Telephony decreased to 64.3%.
32 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 3.2.3. Region: Average Annual Variation Rate of CPI and Mobile Telephony ARPU 2001-2006
Source : CEPAL (ECLAC) Statistical Organism and National Central Banks, Reports and Balances of Companies,Regulatory Organisms and Convergencia Research estimations
-14,3%
-3,5%-3,9%-3,0% -2,2%
9,3% 9,4% 9,8%
6,9% 6,4%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
% PCI Accum. Var. : + 51,2%
Mobile Telephony Accumulated. Var.: - 21,6%
The comparison shows the simple average annual evolution of CPI in the region and the simple average Prices variation of Mobile Telephony. The major gap is observed in 2002, when the CPI registered 9.3% while Mobile Telephony registered a de� ation of 14.3%. Although, this situation declined, it did not revert in the later years.
4. Mobile Telephony Contribution to Employment
4.1. Direct employment in the Mobile Telephony Industry Figure 4.1.1. Region: Direct employment generated by Mobile Telephony 2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
30.075
8.1315.466 4.779
2.130710 435 278 190
31.849
9.518
1.032
1.4732.1353.371
4.956
746
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
Bra
zil
Mex
ico
Arg
entin
a
Ven
ezue
la
Col
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a
Cos
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Chi
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Per
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ador
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El S
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Uru
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ico
Jam
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Pan
ama
Trin
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obag
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# of
Peo
ple
Dire
ct E
mpl
oyed
Total Staff Directly Employed: 107.274
At the end of 2006, approximately 107,274 people were Directly employed by the Mobile Telephony companies of the region under analysis.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 33
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Brazil and Mexico, as a whole, generated 61,924 job positions representing 57.7% of direct employment in mobile services of the region. These two countries plus Argentina, Venezuela, Colombia, Costa Rica and Chile conformed 88.3% of the total.
4.2. Indirect Employment generated by the Mobile Telephony Industry
Figure 4.2.1. Region: Indirect Employment generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
57.406
27.76016.548
4.800 1.561836
3.3302.718
21.630
137.900
41.290
4.405
4.8009.25510.430
21.360
3.978
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
Bra
zil
Mex
ico
Col
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a
Arg
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a
Ven
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Chi
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Per
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Pue
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ico
Pan
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Jam
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Trin
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& T
obag
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# of
Peo
ple
Indi
rect
Em
ploy
ed Total Employment generated in the 1st. link of the Mobile Telephony Value Chain
Indirectly Employed:
370.007
According to that exposed in the � rst part of the study, where the theoretical sustenance is presented, the main goods and services demanded by the Mobile Telephony industry have been identi� ed. A thorough assessment will be carrying out to estimate the Employment generated by the industry in the � rst link of its Value Chain (Indirect Employment).
It has been concluded that the region’s Mobile Telephony has generated Indirect Employment for approximately 370,007 job positions in 2006.
The country where more employment has been generated is Brazil through the � rst link of its Value Chain, contributing approximately 137,900 job positions which represent 37.3% of the region’s total. Brazil, together with Mexico, Colombia, Argentina, Venezuela and Guatemala generated 83.1% of the region’s Indirect Employment.
34 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 4.2.2. Region: Indirect Employment generated by Mobile Telephony in the � rst link of its Value Chain 2006Providers of # %
Sales Team (Sales Agents) 231.798 62,6%Sites Installers 37.200 10,1%Terminal Equipments 27.963 7,6%Maintenance and Repairs 23.030 6,2%Radiobase Network + Troncal Network + Equipments 19.315 5,2%Mobile Contents (SVA) 9.775 2,6%Terminals Logistic 7.070 1,9%IT Systems 6.198 1,7%Others 4.102 1,1%Towers 2.800 0,8%Electrical Feeding 756 0,2%Indirect Employment Total 370.007 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and and its providers
From the employment total generated by Mobile Telephony through the � rst link of its Value Chain, 62.6% is destined to an outsourcing Sales Team, that is to say, the sale agents. It is also important the employment level generated among the Site Installers, Maintenance and Repairs and the production of Terminal Equipments; that as a whole represent 24% of the total.
It is important to point out that Brazil and Mexico are the only producers and exporters of Terminal Equipments in Latin America and the Caribbean. This industry possesses a great value added and a rich Value Chain that arises as consequence of the same one.
4.3. Total Employment generated by the Mobile Telephony Industry
Figure 4.3.1. Region: Total Employment (Direct + Indirect) generated by Mobile Telephony 2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations and Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and and itsproviders
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
180.000
Bra
zil
Mex
ico
Col
ombi
a
Arg
entin
a
Ven
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Gua
tem
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Chi
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Dom
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El S
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Uru
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Pue
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Pan
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Jam
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Trin
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& T
obag
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# of
Dire
ct a
nd In
dire
ct P
erso
nnel
Total Employment generated by Mobile
Telephony
477.281
Mobile Telephony has generated Employment to approximately 477,281 people in the region; 22.5% Directly employed by Mobile Operators under a dependency relationship, while the 77.5 % remaining works in companies that provide goods and services in the � rst link of the Value Chain.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 35
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
An interesting metric unit arises from comparing how much employment the Mobile Telephony generates in its Value Chain for each person that is directly employed by the Operators. It is conclude that for each employee directly employed by Mobile Telephony, 3.5 people are indirectly demanded through the � rst link of its Value Chain.
5. Mobile Telephony Contribution to Connectivity
5.1. Telecommunications Evolution (Mobile, Fixed and Internet)
Figure 5.1.1. Region: Number of Mobile, Fixed Lines and Internet Connections Evolution 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research
97.596121.174
167.796
231.501
293.551
81.718
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Inte
rnet
Con
nect
ions
At the end of 2006, the region possessed a total of 293.6 million of mobile lines while only 81.8 million existed by the end of 2001. In only � ve years, Mobile Telephony multiplied by 3.6 times the number of connections. This means that 211.8 million people have been incorporated as mobile telephony users.
On the other hand, � xed lines total was 38.8 million in 2006. In the period under analysis, signi� cant growth variations are not observed.
Lastly, Internet Connections total was 18.1 million in 2006. An important growth is veri� ed in the period under study, since in 2001 only 5.8 million connections existed.
36 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 5.1.2. Region: Average Annual Variation Rate Number of Mobile, Fixed Lines and Internet Connections 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobile Var. '06 vs. '01
369,2%
Internet Var. '06 vs. '01
278,1%Fixed Var. '06 vs. '01
24,0%
The growth rate of Mobile Telephony users in 2001 - 2006 period has been 369.2%. Much higher than Fixed Telephony growth of 24.0%. Internet has also shown a very important growth registering a rate of 278. 1%.
Figure 5.1.3. Region: Number of Mobile, Fixed Lines and Internet Connections Average Penetration 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research
17,2% 21,6%26,1%
34,3%
46,5%
61,0%
17,8%
4,0%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
The Mobile Telephony is the communication service that most contributes to National Connectivity in Latin America’s countries. By the end of 2006 it reached penetration levels of 61% considering the whole region. In only � ve years, the Mobile Telephony varied its penetration level from 17.2% in 2001 to 61.0% in 2006.Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a penetration of 17.8 %, while in 2001 it was of 16.2%.Although Internet Connections have been increased, there still a long way to go. Closing 2006 its penetration level was of 4.0%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 37
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
5.2. Number of Mobile Lines EvolutionFigure 5.2.1. Region: Number of Mobile Lines Evolution 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research
81.71897.596
121.174
167.796
231.501
293.551
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Figure 5.2.2. Region: Number of Mobile Lines 2001-2006Thousands # 2001 2002 2003 2004 2005 2006
Argentina 6.742 6.567 7.842 13.512 22.156 31.510Brazil 28.746 34.881 46.373 65.605 86.210 99.919Chile 5.101 6.244 7.268 9.261 10.570 12.451Colombia 3.265 4.597 6.186 10.401 21.893 29.763Ecuador 859 1.561 2.394 3.437 6.246 8.485Peru 1.793 2.307 2.930 4.093 5.583 8.772Uruguay 520 514 498 600 1.155 2.330Venezuela 6.473 6.542 7.015 8.421 12.496 18.789South America 53.499 63.213 80.507 115.330 166.309 212.020Costa Rica 311 460 756 912 927 1.465El Salvador 858 889 1.150 1.833 2.412 3.852Guatemala 1.146 1.577 2.035 3.168 4.510 7.179Panama 475 526 692 1.260 1.749 2.174Mexico 21.758 25.928 30.098 38.451 47.129 57.016Central America & Mexico 24.549 29.380 34.732 45.623 56.727 71.686Jamaica 680 1.400 1.800 2.006 2.084 2.147Puerto Rico 1.561 1.620 1.646 1.772 1.833 1.938Dominican Republic 1.270 1.701 2.123 2.534 3.623 4.606Trinidad & Tobago 160 284 366 530 924 1.155The Caribbean 3.671 5.004 5.935 6.843 8.465 9.846Total Region 81.718 97.596 121.174 167.796 231.501 293.551Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research
From the 293.5 million total of mobile lines in the region, South America contributed with 212 million, Central America and Mexico with 71.7 million and the Caribbean with 9.8 million.Regarding analysis by country, Brazil was the one that possessed more lines, 99.9 million, 34.0% of the total at the end of 2006. Mexico represented 19.4% of the total with its 57 million lines. Argentina, counted 31.5 million subscribers representing 10.7%. Colombia, 29.8 million representing 10.1%. Venezuela, 18.9 million lines representing 6.4%. In the sixth place is Chile, that registered 12.4 million of active mobiles that represented 4.2% of the total. The 85% of the total region’s lines is concentrated among the six countries mentioned.
38 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 5.2.3. Region: Accumulated Average Variation Rate Number of Mobile Lines 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
887,6%
144,1%
24,2%
622,0%
526,2%
811,6%
369,2%
0,0%
100,0%
200,0%
300,0%
400,0%
500,0%
600,0%
700,0%
800,0%
900,0%
1000,0%
Ecu
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Per
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Reg
ion
Ave
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Arg
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a
Pan
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El S
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Uru
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Bra
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Jam
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Ven
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Mex
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Chi
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Pue
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Acc
umul
ated
Var
iatio
n %
'06
vs. '
01
Figure 5.2.4. Region: Average Annual Variation Rate Number of Mobile Lines 2001-2006Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -2,6% 19,4% 72,3% 64,0% 42,2% 367,4%Brazil 21,3% 32,9% 41,5% 31,4% 15,9% 247,6%Chile 22,4% 16,4% 27,4% 14,1% 17,8% 144,1%Colombia 40,8% 34,6% 68,1% 110,5% 35,9% 811,6%Ecuador 81,7% 53,4% 43,5% 81,7% 35,8% 887,6%Peru 28,6% 27,0% 39,7% 36,4% 57,1% 389,2%Uruguay -1,2% -3,1% 20,5% 92,5% 101,7% 348,1%Venezuela 1,1% 7,2% 20,0% 48,4% 50,4% 190,3%South America 24,0% 23,5% 41,6% 59,9% 44,6% 423,2%Costa Rica 47,7% 64,5% 20,5% 1,7% 58,0% 370,6%El Salvador 3,6% 29,4% 59,3% 31,6% 59,7% 349,0%Guatemala 37,6% 29,0% 55,7% 42,4% 59,2% 526,2%Panama 10,7% 31,7% 82,0% 38,8% 24,3% 357,6%Mexico 19,2% 16,1% 27,8% 22,6% 21,0% 162,0%Central America & Mexico 23,7% 34,1% 49,1% 27,4% 44,4% 353,1%Jamaica 105,9% 28,6% 11,4% 3,9% 3,0% 215,7%Puerto Rico 3,8% 1,6% 7,6% 3,4% 5,7% 24,2%Dominican Republic 33,9% 24,8% 19,4% 43,0% 27,1% 262,6%Trinidad & Tobago 77,4% 28,9% 44,9% 74,2% 25,0% 622,0%The Caribbean 55,2% 21,0% 20,8% 31,1% 15,2% 281,1%Region Average 31,3% 26,0% 38,9% 43,6% 37,6% 369,2%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The simple average of accumulated growth of Mobile Telephony number of lines in the region in the 2001-2006 period has been outstanding, registering a rate of 369.2%.
Important variations are observed regarding the growth among the different areas and even countries: South America generated the highest region’s increment rate with a 423.2% registration; while Central America and Mexico increased 353.1% and the Caribbean 281.1%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 39
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 5.2.5. Region: Accumulated Variation Ranking of Mobile Lines Number 2001-2006Accumulated Variation % '06 vs. '01
Ecuador 887,6%Colombia 811,6%Trinidad & Tobago 622,0%Guatemala 526,2%Peru 389,2%Costa Rica 370,6%6 Countries average 601,2%Region Average 369,2%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
Some countries have generated even more amazing growths. For example Ecuador and Colombia very above the average with rates of 887.6% and 811.6% respectively; rates that duplicate the region’s average.
Chile is found among the countries that less growth presented with a 144.1% rate. Anyways, it is important to consider that in 2001 this country possessed a very important Mobile Telephony development presenting the second highest penetration rate of the region (32.8%) in that time. Puerto Rico’s case has been different presenting a growth of only 24.2%. In 2001 this country presented a penetration of 40.7% and by the end of 2006 it was increased to 49.3% only.
Figure 5.2.6. Region: Mobile Lines Penetration 2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
61,0%65,4%69,6%
75,8%80,9%
52,6%54,2%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
Trin
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a
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06
40 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 5.2.7. Region: Mobile Lines Penetration Evolution 2001-2006Penetration % 2001 2002 2003 2004 2005 2006
Argentina 18,1% 17,5% 20,7% 35,3% 57,4% 80,9%Brazil 16,2% 19,4% 25,4% 35,5% 46,0% 52,6%Chile 32,8% 39,7% 45,7% 57,5% 65,0% 75,8%Colombia 7,7% 10,7% 14,2% 23,5% 48,8% 65,4%Ecuador 6,9% 12,3% 18,6% 26,4% 47,3% 63,3%Peru 6,9% 8,8% 11,0% 15,2% 20,5% 31,8%Uruguay 15,7% 15,5% 15,0% 18,1% 34,8% 70,1%Venezuela 26,2% 26,0% 27,3% 32,3% 47,1% 69,6%South America 16,3% 18,7% 22,2% 30,5% 45,8% 63,7%Costa Rica 7,8% 11,2% 18,1% 21,5% 21,5% 33,3%El Salvador 13,4% 13,6% 17,3% 27,1% 35,1% 55,1%Guatemala 10,0% 13,4% 16,8% 25,6% 35,5% 55,1%Panama 15,8% 17,2% 22,2% 39,7% 54,2% 66,2%Mexico 21,6% 25,5% 29,4% 37,2% 45,2% 54,2%Central America & Mexico 13,7% 16,2% 20,8% 30,2% 38,3% 52,8%Jamaica 26,1% 53,3% 68,0% 75,3% 77,7% 79,5%Puerto Rico 40,7% 42,0% 42,4% 45,5% 46,9% 49,3%Dominican Republic 14,3% 18,8% 23,1% 27,2% 38,3% 47,9%Trinidad & Tobago 12,3% 21,7% 27,8% 40,2% 69,8% 87,0%The Caribbean 23,3% 33,9% 40,4% 47,0% 58,2% 65,9%Region Average 17,2% 21,6% 26,1% 34,3% 46,5% 61,0%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The average penetration of Mobile Telephony in the region is 61.0%.
South America closed 2006 with a simple average penetration level of 63.7%. Central America and Mexico with 52.8% and the Caribbean with 65. 9%.
Among the region’s countries with higher number of mobile lines, Argentina possesses the highest penetration percentage with a rate of 80.9% (20.9 percentage points over the regional average); on the other hand, Chile counts with 75.8%, Venezuela with 69.6% and Colombia with 65.4%. That is to say, among the main six countries with higher lines’ number, four of these overcome the regional average. Brazil and Mexico that on the whole represent 53.4% of the region’s lines have penetration levels of 52.6% and 54.2% respectively, ratios below the regional average.
The Mobile Telephony growth has been amazing and explosive, incorporating connectivity to population’s sectors before excluded. But, still a regional average penetration rate is observed which is below other world regions, as Asia and Europe; therefore, important growth possibilities still exist.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 41
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
5.3. Number of Fixed Lines Evolution
Figure 5.3.1. Region: Number of Fixed Lines Evolution 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
81.890
84.523
87.085
90.646
93.60294.578
74.000
76.000
78.000
80.000
82.000
84.000
86.000
88.000
90.000
92.000
94.000
96.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Figure 5.3.2. Region: Number of Fixed Lines 2001-2006Thousands # 2001 2002 2003 2004 2005 2006
Argentina 8.870 8.402 8.448 8.775 9.207 9.540Brazil 37.431 38.800 39.200 39.600 39.800 38.800Chile 3.478 3.467 3.252 3.318 3.436 3.436Colombia 7.372 7.517 7.850 7.767 7.664 7.961Ecuador 1.336 1.426 1.549 1.612 1.701 1.775Peru 1.571 1.657 1.839 2.050 2.251 2.401Uruguay 951 947 938 962 1.006 987Venezuela 2.705 2.842 2.956 3.346 3.651 4.217South America 63.715 65.058 66.032 67.430 68.716 69.117Costa Rica 820 872 917 944 985 1.047El Salvador 650 668 753 888 971 1.036Guatemala 756 846 944 1.132 1.248 1.355Panama 382 387 382 410 460 433Mexico 13.774 14.975 16.330 18.073 19.512 19.861Central America & Mexico 16.382 17.748 19.325 21.447 23.177 23.732Jamaica 530 490 500 510 490 490Dominican Republic 955 909 909 936 896 897Trinidad & Tobago 308 319 319 322 324 343The Caribbean 1.793 1.718 1.728 1.768 1.710 1.730Region Total 81.890 84.523 87.085 90.646 93.602 94.578Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The number of � xed lines has also regionally evolved, although in a smaller number than Mobile Telephony. In 2001, the region had 81.9 million lines, while in 2006, this number had increased to 94.6 million lines. In � ve years, 12.7 million of new lines were incorporated.
Closing 2006, from the total of 94.6 million lines, South America contributed with 69.2 million, while Central America and Mexico with 23.7 million and the Caribbean with 1.7 million � xed phone connections.
42 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
The countries that had most number of lines at the end of 2006 were Brazil, with approximately 38.8 million and Mexico with 19.9 million. Together, both have 62% of the region’s � xed lines total. The third country with higher number of � xed lines is Argentina that had 9.5 million at the end of 2006. Colombia, Venezuela and Chile close the group of six countries that together sum 88.6% of the region’s Fixed Telephony.
Figure 5.3.3. Region: Accumulated Average Variation Rate Number of Fixed Lines 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
79,2%
59,4%55,9%
52,8%
44,2%
32,9%27,6%
13,4% 11,3%8,0% 7,5%
3,8% 3,7%
24,0%
-1,2% -7,5%-6,1%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
Gua
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Acc
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Var
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'0
6 vs
. '01
Figure 5.3.4. Region: Annual Average Variation Rate Number of Fixed Lines 2001-2006Variación Anual % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -5,3% 0,5% 3,9% 4,9% 3,6% 7,5%Brazil 3,7% 1,0% 1,0% 0,5% -2,5% 3,7%Chile -0,3% -6,2% 2,0% 3,5% 0,0% -1,2%Colombia 2,0% 4,4% -1,1% -1,3% 3,9% 8,0%Ecuador 6,8% 8,6% 4,1% 5,5% 4,3% 32,9%Peru 5,5% 11,0% 11,5% 9,8% 6,6% 52,8%Uruguay -0,4% -1,0% 2,6% 4,6% -1,9% 3,8%Venezuela 5,1% 4,0% 13,2% 9,1% 15,5% 55,9%South America 2,1% 2,8% 4,6% 4,6% 3,7% 20,4%Costa Rica 6,3% 5,2% 2,9% 4,4% 6,3% 27,6%El Salvador 2,7% 12,7% 18,0% 9,4% 6,6% 59,4%Guatemala 11,9% 11,6% 19,9% 10,2% 8,6% 79,2%Panama 1,3% -1,4% 7,5% 12,2% -5,9% 13,4%Mexico 8,7% 9,0% 10,7% 8,0% 1,8% 44,2%Central America & Mexico 6,2% 7,4% 11,8% 8,8% 3,5% 44,8%Jamaica -7,5% 2,0% 2,0% -3,9% 0,0% -7,5%Dominican Republic -4,8% 0,0% 3,0% -4,3% 0,1% -6,1%Trinidad & Tobago 3,4% 0,0% 1,1% 0,4% 6,1% 11,3%The Caribbean -3,0% 0,7% 2,0% -2,6% 2,0% -0,8%Average Region 2,4% 3,9% 6,4% 4,6% 3,3% 24,0%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
On simple average, the region increased to 24% its number of � xed lines. The con� rmed growth is signi� cant, but clearly very below regarding the Mobile Telephony evolution.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 43
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
From the analysis by zone it is followed that dispersion regarding regional average is very important. South America presented a 20.4% growth, while Central America and Mexico had a 44.8% growth. Lastly, the Caribbean registered a rate of accumulated variation practically neutral.
With countries like Guatemala, El Salvador, Venezuela and Peru, interesting situations have been given; these countries have grown more than 50% in � ve years. Mexico, the second region’s country regarding � xed lines (as likewise mobile) has registered a very signi� cant growth of 44.2%.
Other countries that already had interesting development levels in 2001, as Argentina, Uruguay, Colombia and Chile have grown at rates very below the average. Chile, even moved back 1.2 percentage points.
Figure 5.3.5. Region: Fixed Lines Penetration 2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
29,7%
25,8%24,5% 23,8%
20,9% 20,4%18,9% 18,2% 17,5%
15,6% 14,8%13,2% 13,2%
10,4%9,3% 8,7%
17,8%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
Uru
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Pene
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% 2
006
44 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 5.3.6. Region: Fixed Lines Penetration 2001-2006Penetration % 2001 2002 2003 2004 2005 2006
Argentina 23,9% 22,4% 22,3% 23,0% 23,9% 24,5%Brazil 21,1% 21,6% 21,5% 21,4% 21,2% 20,4%Chile 22,3% 22,0% 20,4% 20,6% 21,1% 20,9%Colombia 17,4% 17,5% 18,0% 17,5% 17,1% 17,5%Ecuador 10,7% 11,3% 12,1% 12,4% 12,9% 13,2%Peru 6,0% 6,3% 6,9% 7,6% 8,3% 8,7%Uruguay 28,6% 28,5% 28,3% 29,0% 30,3% 29,7%Venezuela 10,9% 11,3% 11,5% 12,8% 13,7% 15,6%South America 17,6% 17,6% 17,6% 18,0% 18,6% 18,8%Costa Rica 20,5% 21,3% 22,0% 22,2% 22,8% 23,8%El Salvador 10,2% 10,2% 11,3% 13,1% 14,1% 14,8%Guatemala 6,6% 7,2% 7,8% 9,1% 9,8% 10,4%Panama 12,7% 12,6% 12,2% 12,9% 14,3% 13,2%Mexico 13,7% 14,7% 15,9% 17,5% 18,7% 18,9%Central America & Mexico 12,7% 13,2% 13,9% 15,0% 15,9% 16,2%Jamaica 20,3% 18,6% 18,9% 19,1% 18,3% 18,2%Dominican Republic 10,7% 10,1% 9,9% 10,0% 9,5% 9,3%Trinidad & Tobago 23,6% 24,3% 24,3% 24,4% 24,4% 25,8%The Caribbean 18,2% 17,7% 17,7% 17,9% 17,4% 17,8%Average Region 16,2% 16,3% 16,5% 17,1% 17,5% 17,8%Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The simple average penetration of the region’s Fixed Telephony was of 17.8% closing 2006. Only six countries in the region; Uruguay, Trinidad & Tobago, Argentina, Costa Rica, Chile and Brazil have penetration levels higher to 20%.On the other hand, only two countries, the Dominican Republic and Peru, have penetration levels lower than 10%.
5.4. Internet Connections Number Evolution
Figure 5.4.1. Region: Internet Connections Number Evolution 2001-2006
Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
5.7976.453
7.930
10.483
18.085
14.126
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Inte
rnet
Con
nect
ions
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 45
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 5.4.2. Region: Internet Connections Number 2001-2006Thousands # 2001 2002 2003 2004 2005 2006
Argentina 1.545 1.468 1.629 1.876 2.223 2.505Brazil 1 569 654 1.119 2.280 3.923 5.656Chile 698 758 836 805 906 944Colombia 262 351 461 501 688 888Ecuador 86 101 159 192 207 823Peru 202 385 556 673 833 1.029Uruguay s.d. s.d. s.d. s.d. 187 210Venezuela 305 316 323 459 637 761South America 3.666 4.032 5.082 6.787 9.604 12.816Costa Rica 29 42 64 82 90 s.d.El Salvador 71 95 113 117 127 185Guatemala 1 s.d. s.d. s.d. 46 62 75Panama 49 58 69 79 82 87Mexico 1.884 2.096 2.444 3.191 3.934 4.641Central America & Mexico 2.032 2.291 2.691 3.516 4.295 4.988Dominican Republic 64 83 96 106 135 184Trinidad & Tobago 35 48 61 74 92 98The Caribbean 99 130 157 181 226 282Region Total 5.797 6.453 7.930 10.483 14.126 18.085(1) It is only correspond to Broadband Internet ConnectionsSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The number of Internet Connections has signi� cantly evolved in the region. In 2001, the region had 5.8 million connections while in 2006 this number had increased to 18.1 million lines. In only � ve years, 12.3 million of new clients were incorporated.Closing 2006, from the total of 18.1 million connections, South America contributed with 12.8 million, while Central America and Mexico with 4.9 million and the Caribbean with 282 thousand lines.The same as in Mobile and Fixed Telephony, the highest number of Internet Connections is concentrated between Brazil and Mexico.
Figure 5.4.3. Region: Accumulated Average Variation Rate Number of Internet Connections 2001-2006
(1) Costa Rica’s accumulated variation corresponds to the period '05 vs. '01Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
894,0%861,7%
408,9%
238,8%212,5%
185,6% 180,7% 161,3% 149,6% 146,4%
78,1% 62,2%35,3%
278,1%
0,0%
100,0%
200,0%
300,0%
400,0%
500,0%
600,0%
700,0%
800,0%
900,0%
1000,0%
Bra
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Ecu
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Pro
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'06
vs.
'01
46 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Second Part:
Figure 5.4.4. Region: Average Annual Variation Rate Number of Internet Connections 2001-2006Annual Variation % 2002 2003 2004 2005 2006 '06 vs. '01
Argentina -5,0% 11,0% 15,2% 18,5% 12,7% 62,2%Brazil 14,9% 71,1% 103,8% 72,1% 44,2% 894,0%Chile 8,5% 10,3% -3,7% 12,5% 4,2% 35,3%Colombia 34,0% 31,3% 8,7% 37,2% 29,1% 238,8%Ecuador 17,6% 57,5% 21,0% 8,0% 297,3% 861,7%Peru 90,3% 44,6% 21,0% 23,9% 23,5% 408,9%Uruguay s.d. s.d. s.d. s.d. 12,3% s.d.Venezuela 3,5% 2,2% 42,5% 38,6% 19,5% 149,6%South Americsa 23,4% 32,6% 29,8% 30,1% 55,3% 378,6%Costa Rica 1 46,4% 53,3% 27,5% 9,2% s.d. 212,5%El Salvador 33,9% 18,9% 4,4% 8,4% 45,0% 161,3%Guatemala s.d. s.d. s.d. 33,9% 21,5% s.d.Panama 19,4% 19,4% 13,6% 4,9% 4,9% 78,1%Mexico 11,3% 16,6% 30,6% 23,3% 18,0% 146,4%Central America & Mexico 27,7% 27,0% 19,0% 16,0% 22,3% 149,6%Dominican Republic 28,2% 16,8% 10,3% 26,6% 36,7% 185,6%Trinidad & Tobago 37,2% 27,1% 22,1% 23,6% 6,6% 180,7%The Caribbean 32,7% 22,0% 16,2% 25,1% 21,6% 183,1%Region Average 26,2% 29,2% 24,4% 24,3% 41,1% 278,1%(1) Costa Rica’s accumulated variation corresponds to the period '05 vs. '01Source : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
On simple average, the region has increased its number from Internet Connections to 278.1%. The con� rmed growth is very signi� cant, but the industry still has a long way to go.From the analysis by zone it is followed that variation’s dispersion is very signi� cant. South America presented a 378.6% growth, while Central America and Mexico had a 149.6% growth. Lastly, the Caribbean registered a rate of accumulated variation of 183.1%.
Figure 5.4.5. Region: Internet Connections Penetration 2006
(1) It corresponds to the penetration % 2005(2) It only corresponds to Broadband Internet ConnectionsSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
2,0%2,8%
3,0%
4,4%4,0%
5,7%6,4%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
Trin
idad
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2
Pene
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ion
% 2
006
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 47
Mobile Telephony Global Contribution toLatin America and the Caribbean Economies
ntributiiiioon to
Figure 5.4.6. Region: Internet Connections Penetration 2001-2006Penetration % 2001 2002 2003 2004 2005 2006
Argentina 4,2% 3,9% 4,3% 4,9% 5,8% 6,4%Brazil 1 0,3% 0,4% 0,6% 1,2% 2,1% 3,0%Chile 4,5% 4,8% 5,3% 5,0% 5,6% 5,7%Colombia 0,6% 0,8% 1,1% 1,1% 1,5% 2,0%Ecuador 0,7% 0,8% 1,2% 1,5% 1,6% 6,1%Peru 0,8% 1,5% 2,1% 2,5% 3,1% 3,7%Uruguay s.d. s.d. s.d. s.d. 5,6% 6,3%Venezuela 1,2% 1,3% 1,3% 1,8% 2,4% 2,8%South America 1,8% 1,9% 2,3% 2,6% 3,5% 4,5%Costa Rica 0,7% 1,0% 1,5% 1,9% 2,1% s.d.El Salvador 1,1% 1,5% 1,7% 1,7% 1,9% 2,6%Guatemala 1 s.d. s.d. s.d. 0,4% 0,5% 0,6%Panama 1,6% 1,9% 2,2% 2,5% 2,6% 2,6%Mexico 1,9% 2,1% 2,4% 3,1% 3,8% 4,4%Central America & Mexico 1,3% 1,6% 2,0% 1,9% 2,1% 2,6%Dominican Republic 0,7% 0,9% 1,1% 1,1% 1,4% 1,9%Trinidad & Tobago 2,7% 3,7% 4,6% 5,6% 6,9% 7,4%The Caribbean 1,7% 2,3% 2,8% 3,4% 4,2% 4,6%Region Average 1,6% 1,9% 2,3% 2,5% 3,1% 4,0%(1) It only corresponds to Broadband Internet ConnectionsSource : Reports and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
The region’s penetration of Internet Connections was 4% closing 2006. However, in 2001, it was 1.6% only. This demonstrates that there still a long way to go for the industry.
Regarding analysis by zone, South America presented a penetration level of 4.5% closing 2006 while in 2001 it was 1.8% only. Central America and Mexico closed 2006 with levels of 2.6% (although Mexico had 4.4%). Lastly, the Caribbean registered a penetration level of 4.6%.
Regarding analysis by country, the highest penetration of the region is observed in Trinidad & Tobago with 7.4%. Then Argentina, Uruguay and Ecuador are found with rates of 6.4%, 6.3% and 6.1% respectively.
The countries that present lower penetration are the Dominican Republic with 1.9%, Colombia with 2%, Panama and El Salvador with 2.6% and Venezuela with 2.8%.
48 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
50 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
1. Argentina
1.1. Mobile Telephony Contribution toGross Domestic Producto
Figure 1.1.1. Argentina: Supply and Demand Evolution
of Mobile Telephony 2001-2006
Source : Researches and Balances of Companies and Convergencia Research estimations
3.531
1.139 1.422
2.573
4.112
5.720
3.073
5.048
2.221
1.046911
2.789
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
18.946 Demand: Accum. ‘01 to ’06
15.088
From 2001 to 2006, Mobile Telephony contributed to Argentina’s GDP supplying goods and services for approximately US $18.946 million.
Regarding Demand, Mobile Telephony contributed to GDP approximately US $15.088 million in purchasing of goods and services from 2001 to 2006.
Figure 1.1.2. Argentina: Average Annual Variation Rateof Mobile Telephony and GDP 2001-2006
Source : The National Institute of Statistics and Census (INDEC), Economic Commission for Latin America and the Caribbean Statistical (ECLAC)-Published Balances of Companies and Convergencia Research estimations
24,9%
-67,7%
80,9% 59,8%
39,1%
112,2%
14,9%
38,4%
64,2%
-67,3%
-10,9%8,8%
9,0% 9,2% 8,5%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
62,0%Demand:
Var. ’06 vs. ‘01
81,0%
GDP: Var. ’06 vs. ‘01
25,2%
In the period 2001-2006, the total increase of Mobile Telephony was 62% for the Supply and 81% for the Demand. In the same period, as a whole, the Argentinean economy registered a 25.2% growth rate.
During 2001 and 2002 Argentina faced one of the most severe economic crises in its history. However, it demonstrated a power of surprising recovery in very short time, generating very signi� cant growth rates after the devaluation crisis. In the case of Mobile Telephony, the increase registered during the period 2002-2006 was 402.2% for the Supply and 454% for the Demand. Regarding the economy, as a whole, the rate of the period was 14%.
1. Argentina
Figure 1.1.3. Argentina: Accumulated Average Variation Rateof Mobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, INDEC, Researches and Balances of Companies and Convergencia Research estimations
47,2%
35,3%
23,3% 21,9%17,9%
15,6%
5,7%
25,2%
62,0%65,9%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Con
stru
ctio
n
Mob
ileTe
leph
ony
Tran
spor
t &C
omm
unic
atio
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Man
ufac
.In
dust
ry
GD
P
Trad
e
Pub
lic S
ervi
ces
Agr
icul
ture
,H
untin
g, e
tc.
Oth
er S
ervi
ces
Finn
an.&
Bus
ines
s S
ervs
.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Regarding comparison of Mobile Telephony growth rates accumulated in the period 2001-2006 with respect to other sectors of the economy; it is observed that this industry is in the second place with a rate of 62% behind the Constructions sector that has grown 65.9% generating a true real state boom in the country. On average, the national economy grew 25.2%.
Figure 1.1.4. Argentina: Mobile Telephony aspercentage of GDP 2001-2006
Source : ECLAC, INDEC, Researches and Balances of Companies and Convergencia Research estimations
1,1% 1,1%
1,7%
2,2%
2,7%
1,3%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity was 1.3% as a participation percentage of ordinary GDP in 2001. In 2006 the proportion had changed signi� cantly, duplicating the pre-crisis participation levels observing a relation of 2.7%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 51
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
1.2. Mobile Telephony Contributionto National Investment
Figure 1.2.1. Argentina: Mobile Telephony Investment Evolution(CAPEX) 2001-2006
Source : Researches and Balances of Companies, Regulatory Organisms and Convergencia Research estimations
424
114
48
366
439
533
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
US$ 1.923
In Argentina the Mobile Telephony operators have accumulated investments in Capital Expenditure (CAPEX) for approximately US $1.923 million among 2001-2006.
Figure 1.2.2. Argentina: Investment/ Mobile TelephonySales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, INDEC, Researches and Balances of Companies and Convergencia Research estimations
20,3%21,5%
19,2%
15,1%
12,0%
14,2%
9,3%10,7%
14,2%
10,0%
12,0%
3,4%0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
The conclusion is that on average, the Mobile Telephony industry has invested approximately 10% of its Sales, while the country total has invested approximately 17.7% of its GDP. The result is in� uenced by the important fall of the investment in 2002 and 2003 as a consequence of the uncertainty and crisis of those years.
1.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 1.3.1. Argentina: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : INDEC, Researches and Balances of Companies and Convergencia Research estimations
-67,8%
-13,3%-4,7%
18,8%13,0%
25,9%
13,4%4,4%
9,7% 10,9%
-70,0%
-50,0%
-30,0%
-10,0%
10,0%
30,0%
50,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI: + 81,3%
Accum. Var. Mobile Telephony:- 64,3%
At the beginning of 2002 Argentina faced an abrupt exit of “convertibility”, (US $1 = AR $1) and as consequence during that year it registered an in� ation rate of 25.9%. In the following years in� ation remained sFigure according to an emerging country growth levels. In the 2001-2006 period, the accumulated in� ation was 81.3%.
Regarding Mobile Telephony, the average revenues per user (ARPU) evolution was unequal. In 2003 an important increase of 18.8% was observed as a consequence of the partial currency revaluation and the consumption increase by user. From 2004 onward, the average revenue variation of Mobile Telephony has registered negative rates, in spite of being operating in an in� ationary environment. This is mainly due to users’ incorporation of lower monthly average consumption.
Figure 1.3.2. Argentina: Accumulated Average Variation Rateof CPI, Mobile Telephony ARPU and GDP 2001-2006
Source : INDEC, Researches and Balances of Companies and Convergencia Research estimations
126,0%109,5%
84,7% 84,1%
62,8%52,9% 49,8% 49,7%
81,3%97,7%
-170,0%
-120,0%
-70,0%
-20,0%
30,0%
80,0%
130,0%
Clo
thin
g
Food
s an
dB
ever
ages
Rec
reat
ion
Hou
sing
Mai
nten
ance
Oth
er g
oods
and
serv
ices
CP
I
Hea
lth e
xpen
ses
Edu
catio
n
Tran
sp. &
C
omm
unic
atio
ns
Hou
sing
and
basi
c se
rvic
es
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 64,3%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the de� ationary character of the industry’s average revenues that accumulated a 64.3% decrease, although all the sectors included in CPI have shown average rates of 81.4% that in clothing case reached levels of 126%.
52 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
1.4. Mobile Telephony Contributionto Employment
Figure 1.4.1. Argentina: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Total employment generated by Mobile Telephony: 37.278
Direct:# 9.51825,5%Indirect:
# 27.76074,5%
In 2006, approximately 37.278 people have been employed by the Mobile Telephony Industry in Argentina.
Approximately 9.518 people are kept directly employed by Mobile Telephony operators. Meanwhile, the industry has indirectly generated 27.760 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile Telephony industry, 2.9 employees are indirectly demanded.
Figure 1.4.2. Argentina: Indirect Employment generated byMobile Telephony in the 1st. Link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 22.000 79,3%Mobile Contents (SVA) 1.350 4,9%Sites Installing 1.200 4,3%Maintennance and Repairs 1.100 4,0%Network: Radiobase + Troncal Network + Equipments 900 3,2%Terminals Logistic 400 1,4%IT Systems 350 1,3%Terminal Equipments 200 0,7%Others 120 0,4%Electrical Feeding 80 0,3%Towers 60 0,2%Indirect Total Employment 27.760 100,0%Source : Study carried out by Convergencia Research according to datagiven by Mobile Telephony Companies and its Providers
It is observed that of the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 79.3% is destined to carry out commercial actions.
1.5. Mobile Telephony Contributionto Connectivity
Figure 1.5.1. Argentina: Number of Mobile - Fixed Linesand Internet Connections Evolution 2001-2006
Source : National Communications Commission (CNC)
13.512
22.156
7.8426.5676.742
31.510
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2001 2002 2003 2004 2005 2006Th
ousa
nds
of L
ines
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Argentina had a total of 31.5 million users, while at the end of 2001 only 6.7 million users existed. The amazing growth reached during the period, is one of the highest observed in Latin America and the Caribbean, in spite of the severe economic crisis suffered by the country in the � rst years under analysis.
Fixed Telephony: The � xed lines total was 9.5 million in 2006; signi� cant growth variations were not observed in the period under analysis.
Internet: The total internet connections were 2.5 million in 2006. This includes all the Dial Up accesses and Broadband. A moderated growth is observed in the period under analysis.
Figure 1.5.2. Argentina: Annual Variation Rate in Number ofMobile - Fixed Lines and Internet Connections 2001-2006
Source: CNC
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
367,4%Internet:
’06 vs. ‘01 Var.
62,2%
Fixed: ’06 vs. ‘01 Var. 7,5%
The growth rate of mobile users in the 2001-2006 period was 367.4%; much higher than 7.5 % growth of Fixed Telephony and 62.2 % of Internet.
Only, in 2006 Mobile Telephony grew 42.2%. Due to the high penetration levels of Mobile Telephony it is foreseen that the number of mobile lines will be increased in the following years, but in a moderated rhythm.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 53
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 1.5.3. Argentina: Mobiles-Fixed Linesand Internet Connections Penetration 2001-2006
Source : ECLAC and CNC
80,9%
57,4%
35,3%
20,7%17,5%18,1%
24,5%
6,4%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony is the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 it had reached penetration levels of 80.9%; positioning it as the highest penetration of Latin America and registering similar levels to some countries of the First World.
In only 5 years, Mobile telephony modi� ed its penetration level from 18.1% in 2001 to 80.9% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 24.5 % penetration.
Although Internet connections have increased, at the end of the analyzed period there is still a long way to go; closing 2006 its penetration level was 6.4%.
54 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
2. Brazil
2.1. Mobile Telephony Contribution toGross Domestic Product
Figure 2.1.1. Brazil: Mobile Telephony Supplyand Demand Evolution 2001-2006
Source : Balances Published by Companies and Convergencia Research estimations
5.085
6.2227.613
10.592
15.135
18.304
16.039
18.760
9.988
6.1855.053
4.221
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
62.952 Demand: Accum. ‘01 to ’06
60.246
From 2001 to 2006, the Mobile Telephony contributed to national GDP, supplying goods and services for approximately US $62.952 million.
With respect to Demand, the Mobile Telephony contributed US $60.246 million to GDP purchasing goods and services from 2001 to 2006.
Figure 2.1.2. Brazil: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Balances Published by Companies and Convergencia Research estimations
22,4%
22,4%
39,1%
42,9%
20,9%
61,5%
22,4%
60,6%
17,0%19,7%
2,7%
1,1%
5,7%2,9% 3,7%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
% Supply: Var. ’06 vs. ‘01
260,0%
Demand: Var. ’06 vs. ‘01
344,5%
GDP: Var. ’06 vs. ‘01
17,1%
In the 2001-2006 period, the total growth of Mobile Telephony was 260% for the Supply and 344.5% for the Demand. In the same period Brazil’s economy, as a whole, registered a growth rate of 17.1%.
Figure 2.1.3. Brazil: Accumulated Average Variation Rateof Mobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, Statistical Organism and National Central Banks, Researches, Regulatory Organisms and Convergencia Research estimations
32,4% 26,2% 19,8% 16,4% 16,3% 16,0%
260,0%
42,1%23,2% 17,1%
0,0%
50,0%
100,0%
150,0%
200,0%
250,0%
300,0%
Mob
ileTe
leph
ony
Min
ning
&Q
uarr
y
Tran
spor
t &C
omm
unic
atio
n
Pub
lic S
ervi
ces
Agr
icul
ture
,H
untin
g, e
tc.
Finn
an.&
Bus
ines
s S
ervs
.
GD
P
Man
ufac
.In
dust
ry
Oth
er S
ervi
ces
Trad
e
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates accumulated in the 2001-2006 period are compared to the different economy sectors, it is conclude that Mobile Telephony occupies by far the � rst place registering a rate of 260%, while Minnning and Quarrying was the second sector with highest increase registering a 42. 1% rate. On average, the national economy grew 17.1%.
Figure 2.1.4. Brazil: Mobile Telephony as porcentageof GDP 2001-2006
Source : ECLAC, Statistics and Geography Brazilian Institue (IBGE), Balances Published by Companies and Convergencia Research estimations
1,2%1,4%
1,6%1,7%
1,9%
0,9%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
1,4%
1,6%
1,8%
2,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
In 2001, the Mobile Telephony activity as participation percentage regarding nominal GDP was 0.9%. In 2006, the proportion had signi� cantly changed duplicating the participation levels, elevating the proportion to 1.9%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 55
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
2.2. Mobile Telephony Contributionto National Investment
Figure 2.2.1. Brazil: Investment Evolution ofMobile Telephony (CAPEX) 2001-2006
Source : Balances Published by Companies and Convergencia Research estimations
870 9891.219
1.926
3.380
3.983
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to. ’06
12.366
The Mobile telephony operators in Brazil have invested approximately US $12.366 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 2.2.2. Brazil: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, IBGE, Balances Published by Companies and Convergencia Research estimations
16,2%16,3%16,1%15,3%
16,4%
17,0%
17,1%
15,9%
16,0%
18,2%
21,8%22,3%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
22,0%
24,0%
26,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 18.5% of its Sales, while the country total has invested approximately 16.2% of its GDP. The conclusion is that the Mobile Telephony investments were higher, in proportion, than those carried out by the rest of the national economy. This tendency was even more remarkable during the last 3 years of the analyzed period.
2.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 2.3.1. Brazil: Average Annual Variation Rate of CPIand Mobile Telephony ARPU 2001-2006
Source : IBGE, Balances Published by Companies and Convergencia Research estimations
-25,2%
-4,6%
0,2% 1,0%
7,6%
2,8%
5,1%6,6%8,2%
9,9%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+36,8%
Accum. Var. Mobile Telephony: - 22,3%
In the 2001-2006 period, the accumulated in� ation was 36.8%.
Regarding Mobile Telephony, its average revenues per user evolution (ARPU) was negative. A signi� cant decrease of 25.2% was observed in 2002 as a consequence of the currency devaluation. Between 2005 and 2006 a light increase was produced but it did not match the 2002 decrease.
Figure 2.3.2. Brazil: Average Accumulated Variation Rate of CPI,Mobile Telephony Average Revenues and GDP 2001-2006
Mobile Telehony
Source : IBGE, Balances Published by Companies and Convergencia Research estimations
52,5%
46,8%42,4%
33,8%
28,2%
-22,3%
36,8%34,1%
43,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
Tran
spor
t
Edu
catio
n
Hea
lth e
xpen
ses
Per
sona
lex
pens
es CP
I
Hou
sing
Mai
nten
ance
Food
and
Bev
erag
es
Clo
thin
g
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 22,3%
Based on the comparison of the accumulated variation rate of in� ation in the years of study, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 22.3% decrease from 2001 to 2006, although all the components have shown variation in in� ation. The highest increase was registered by the Transports sector reaching 52.5%.
56 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
2.4. Mobile Telephony Contributionto Employment
Figure 2.4.1. Brazil: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Total employment generated by Mobile Telephony: 169.749
Direct: # 31.84918,8%
Indirect: # 137.900
81,2%
The Mobile Telephony industry in Brazil has employed approximately 169,749 people in 2006.
Approximately 31,849 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 137,900 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 4.3 employees are indirectly demanded.
Figure 2.4.2. Brazil: Indirect Employment generated byMobile Telephony in the 1st link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 58.000 42,1%Sites Installing 27.000 19,6%Maintennance and Repairs 17.700 12,8%Terminal Equipments 15.000 10,9%Network: Radiobase + Troncal Network + Equipments 9.300 6,7%Mobile Contents (SVA) 4.400 3,2%Terminals Logistic 2.800 2,0%IT Systems 2.300 1,7%Others 1.400 1,0%Indirect Total Employment 137.900 100,0%Source : Study carried out by Convergencia Research according to datagiven by Mobile Telephony Companies and its Providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 42.1% is destined to an outsourcing Sales team. It is also important the employment level generated among the Site Installers, Maintenance and Repairs and the production of Terminal Equipments.
Brazil produces and exports Terminal Equipments, industry that generates 15,000 jobs. Brazil together with Mexico are the only countries of Latin America and the Caribbean that have a terminal production industry; besides of contributing to employment it generates revenues for export
2.5. Mobile Telephony Contributionto Connectivity
Figure 2.5.1. Brazil: Number of Mobile, Fixed Linesand Internet Connections Evolution 2001-2006
Note: Internet Connections only refers to Broadband ConnectionsSource : IBGE and The Brazilian National Telecommunications Agency (ANATEL)
65.605
86.210
46.373
34.88128.746
99.919
0
20.000
40.000
60.000
80.000
100.000
120.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Brazil had a total of 99.9 million users, while at the end of 2001 only 28.7 million users existed. Brazil is the country with the highest number of mobile users of the Region.
Fixed telephony: The � xed lines total was 38.8 million in 2006; signi� cant growth variations were not observed in the period under analysis.
Internet: The total broadband connections were of 5.7 million in 2006. An interesting growth is observed in the period under analysis, since only 569 thousand connections existed in 2001.
Figure 2.5.2. Brazil: Annual Variation Rate Mobile, Fixed Linesand Internet Connections Number 2001-2006
Note: Internet Connections only refers to Broadband ConnectionsSource : IBGE and ANATEL
-10,0%
10,0%
30,0%
50,0%
70,0%
90,0%
110,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
% Mobiles: ’06 vs. ‘01 Var.
247,6%
Internet:’06 vs. ‘01 Var.
894,0%
Fixed: ’06 vs. ‘01 Var. 3,7%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 247.6%; much higher than Fixed Telephony growth of 3.7%. The Broadband Internet growth was even higher to that of Mobile Telephony, registering a rate of 894%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 57
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 2.5.3. Brazil: Mobile, Fixed Lines andInternet Connections Penetration 2001-2006
Note: Internet Connections only refers to Broadband ConnectionsSource : IBGE and ANATEL
16,2% 19,4%25,4%
35,5%
46,0%
52,6%
20,4%
3,0%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pen
etra
tion
%
Mobile LinesFixed Lines
Internet Connections
At the end of 2006, Mobile Telephony had reached 52.6% penetration levels, representing the most important telecommunications service regarding its contribution to national connectivity.
In only 5 years, mobile telephony modi� ed its penetration level from 16.2% in 2001 to 52.6% in 2006.
Regarding Fixed Telephony its contribution to connectivity remained sFigure during the whole period, closing 2006 with a penetration of 20.4 %.
Although, Broadband Internet connections were increased, the penetration levels at the end of the period studied remained in minimum values; closing 2006 its penetration level was 3%.
58 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
3. Chile
3.1. Mobile Telephony Contribution toGross Domestic Product
Figure 3.1.1. Chile: Mobile Telehony Supplyand Demand Evolution 2001-2006
Source : Telecommunications Subsecretary of Chile (SUBTEL), Balances Published by Companies and Convergencia Research estimations
998
1.2601.441
1.7321.908
2.813
1.675
2.487
1.376
1.0821.042982
0
500
1.000
1.500
2.000
2.500
3.000
3.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
10.152
Demand: Accum. ‘01 to ’06
8.643
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $10.152 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $8.643 million of goods and services from 2001 to 2006.
Figure 3.1.2. Chile: Average Annual VariationRate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, SUBTEL Balances Published by Companies and Convergencia Research estimations
14,4%
26,3%
20,2%10,2%
47,4%
27,2%
3,9%
21,8%
48,5%
6,1%2,2%
3,9%6,0% 5,7% 4,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
% Supply: Var. ’06 vs. ‘01
182,0%
Demand: Var. ’06 vs. ‘01
153,5%
GDP: Var. ’06 vs. ‘01
23,7%
In the 2001-2006 period, the total growth of Mobile Telephony was 182% for the Supply and 153.5% for the Demand. In the same period Chile’s economy, as a whole, registered a growth rate of 23.7%.
Figure 3.1.3. Chile: Accumulated Average Variation Rate of Mobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, SUBTEL Balances Published by Companies and Convergencia Research estimations
32,0% 28,4% 26,3% 23,0%15,2%
23,7%
182,0%
32,9% 27,1% 25,8%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
160,0%
180,0%
200,0%
Mob
ileTe
leph
ony
Tran
sp. &
Com
mun
icat
ion
Agr
icul
ture
,H
untin
g, e
tc.
Trad
e
Con
stru
ctio
n
Pub
lic S
ervi
ces
Finn
an.&
Bus
ines
s S
ervs
.
GD
P
Man
ufac
.In
dust
ry
Oth
er S
ervi
ces
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile telephony occupies by far the � rst place registering a rate of 182%, while Transport and Communications has been the second sector of highest growth registering a rate of 32.9%. On average, the national economy grew 23.7%.
Figure 3.1.4. Chile: Mobile Telephony as porcentageof GDP 2001-2006
Source : ECLAC, SUBTEL Balances Published by Companies and Convergencia Research estimations
1,9%1,9%
1,8%1,6%
1,9%
1,4%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.4% in 2001. In 2006, the proportion had improved reaching participation levels of 1.9%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 59
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
3.2. Mobile Telephony Contributionto National Investment
Figure 3.2.1. Chile: Mobile Telephony Investment Evolution(CAPEX) 2001-2006
Source : SUBTEL Balances Published by Companies and Convergencia Research estimations
315
200171
269
398
655
0
100
200
300
400
500
600
700
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
2.009
The Mobile telephony operators in Chile have invested approximately US $2.009 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 3.2.2. Chile: Investment / Mobile TelephonySales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, SUBTEL Balances Published by Companies and Convergencia Research estimations
20,2%20,6%19,1%
20,1%20,3%20,7%
31,6%
15,9%11,9% 15,5%
23,3%
20,8%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation, of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 19.8% of its Sales, while the country total has invested approximately 20.2% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion similar to those carried out by the rest of the national economy.
3.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 3.3.1. Chile: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : National Statistics Intitute of Chile (INE), SUBTEL Balances Published by Companies and Convergencia Research estimations
-11,7%
-4,8%-4,4%
3,8%
16,7%
2,6%3,7%
2,4%1,1%2,8%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 13,2%
Accum. Var. Mobile Telephony:- 2,7%
In the 2001-2006 period, the accumulated in� ation was 13.2% remaining the annual variation rate sFigure.
Regarding Mobile Telephony, its average revenues per user (ARPU) evolution was negative. A signi� cant decrease of 11.7% was observed in 2002. From 2005 a slight increase was produced, but at the end of 2006 it did not match the decreases of previous years.
Figure 3.3.2. Chile: Average Accumulated Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : INE, SUBTEL, Balances Published by Companies and Convergencia Research estimations
25,9%
19,3%
15,3%
-11,0%
13,2%9,6%
18,0%
-5,1%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
Tran
spor
t
Hou
sing
Cul
ture
Hea
lth e
xpen
ses
CP
I
Food
s an
dB
ever
ages
Mob
ile T
elep
h.
Equ
ipm
ent
Clo
thin
g
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 2,7%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 2.7%, decrease, although all the components have shown variation in in� ation. The highest increase was registered by the Transports sector reaching 25.9%.
60 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
3.4. Mobile Telephony Contributionto Employment
Figure 3.4.1. Chile: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Total employment generated by Mobile Telephony: 15.209
Direct: # 4.77931,4%
Indirect: # 10.43068,6%
In 2006, approximately 15,209 people have been employed by the Mobile Telephony Industry in Chile.
Approximately 4,779 people are kept directly employed by Mobile Telephony operators. Meanwhile, the industry has indirectly generated 10,430 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile Telephony industry, 2,2 employees are indirectly demanded.
Figure 3.4.2. Chile: Indirect Employment generated byMobile Telephony in the 1st. Link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 7.000 67,1%Sites Installing 1.000 9,6%Network: Radiobase + Troncal Network + Equipments 700 6,7%Maintennance and Repairs 530 5,1%IT Systems 380 3,6%Terminals Logistic 280 2,7%Mobile Contents (SVA) 250 2,4%Terminal Equipments 180 1,7%Towers 80 0,8%Electrical Feeding 30 0,3%Indirect Total Employment 10.430 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that of the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 67.1% is destined to an outsourcing Sales Team. It is also important the employment level generated among the Site Installers that reaches 9.6%.
3.5. Mobile Telephony Contributionto Connectivity
Figure 3.5.1. Chile: Number of Mobile, Fixed Lines andInternet Connections Evolution 2001-2006
Source : SUBTEL
9.261
10.570
7.2686.244
5.101
12.451
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Chile had a total of 12.5 million users, while at the end of 2001 only 5.1 million users existed.
Fixed telephony: The � xed lines total was 3.4 million in 2006, signi� cant growth variations were not observed in the period under analysis.
Internet: The total internet connections were of 944 thousand in 2006 until 2006. This includes all Dial Up and Broadband accesses. An interesting growth is observed in the period under analysis, since only 698 thousand connections existed in 2001.
Figure 3.5.2. Chile: Annual Variation Rate Number of Mobile,Fixed Lines and Internet Connections 2001-2006
Source : SUBTEL
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
144,1%Internet:
’06 vs. ‘01 Var.
35,3%
Fixed: ’06 vs. ‘01 Var. - 1,2%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 144.1%; much higher than the evolution of Fixed Telephony that has decreased to 1.2%. Regarding Internet growth it has been signi� cant registering a rate of 35.3%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 61
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 3.5.3. Chile: Mobile-Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC and SUBTEL
75,8%65,0%
57,5%
45,7%
39,7%
32,8%
20,9%
5,7%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. A level of 75.8% penetration positioned Chile as one of the highest of Latin America.
In only 5 years, Mobile telephony modi� ed its penetration level from 32.8% in 2001 to 75.8% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period, closing 2006 with a 20.9 % penetration.
Although Internet connections have increased, there is still a long way to go. Closing 2006 its penetration level was 5.7%.
62 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
4. Colombia
4.1. Mobile Telephony Contribution toGross Domestic Product
Figure 4.1.1. Colombia: Supply and Demand Evolutionof Mobile Telephony 2001-2006
Source : Superintendence of Public Utilities (SSPD), Regulatory Commission for Telecommunications (CRT), Balances Published by Companies and Convergencia Research estimations
541734 935
1.626
2.776
3.672
2.866
3.508
1.486
872627606
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
10.285
Demand: Accum. ‘01 to ’06
9.965
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $10.285 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $9.965 million of goods and services from 2001 to 2006.
Figure 4.1.2. Colombia: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, SSPD, CRT, Companies Balances and Convergencia Research estimations
27,4%
35,8%
74,0%70,7%
32,3%
70,5%
39,1%
92,8%
22,4%
3,4%
1,9%3,9% 4,9% 4,7% 6,8%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
579,2%
Demand: Var. ’06 vs. ‘01
478,7%
GDP: Var. ’06 vs. ‘01
24,2%
In the 2001-2006 period, the total growth of Mobile Telephony was 579.2% for the Supply and 478.7% for the Demand; establishing it as the country with the highest growth in the region. In the same period Colombia’s economy, as a whole, registered a growth rate of 24.2%.
Figure 4.1.3. Colombia: Accumulated Average Variation Rateof Mobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, SSPD, CRT, Companies Balances and Convergencia Research estimations
38,6% 31,2% 14,5% 10,2%24,2% 19,1%
579,2%
83,6%28,2% 19,3%
0,0%
100,0%
200,0%
300,0%
400,0%
500,0%
600,0%
700,0%
Mob
ileTe
leph
ony
Con
stru
ctio
n
Trad
e
Man
ufac
.In
dust
ry
Tran
sp. &
Com
mun
icat
ion
GD
P
Min
ning
&Q
uarr
y
Finn
an.&
Bus
ines
s S
ervs
.
Pub
lic S
ervi
ces
Agr
icul
ture
,H
untin
g, e
tc.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place registering a rate of 579.2%, while Constructions has been the second sector of highest growth registering a rate of 83.6%. On average, the national economy grew 24.2%.
Figure 4.1.4. Colombia: Mobile Telephony as porcentageof GDP 2001-2006
Source : ECLAC, SSPD, CRT, Companies Balances and Convergencia Research estimations
0,9%1,2%
1,7%
2,3%
2,7%
0,7%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 0.7% in 2001. In 2006, the proportion has been quadruplicated reaching participation levels of 2.7%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 63
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
4.2. Mobile Telephony Contributionto National Investment
Figure 4.2.1. Colombia: Mobile Telephony Investment Evolution(CAPEX) 2001-2006
Source : ECLAC, SSPD, CRT, Companies Balances and Convergencia Research estimations
217
83
262323
840905
0
100
200
300
400
500
600
700
800
900
1.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $ CAPEX :
Accum. ‘01 to ’06
2.630
The Mobile telephony operators in Colombia have invested approximately US $2.630 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 4.2.2. Figure 4.2.2. Colombia: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, SSPD, CRT, Companies Balances and Convergencia Research estimations
18,5%20,8%
18,4%16,5%
14,5%
13,6%
40,1%
11,4%
28,0%
19,8%
24,6%
30,2%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 25.7% of its Sales, while the country total has invested approximately 17.1% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, higher than those carried out by the rest of the national economy.
4.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 4.3.1. Colombia: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : National Administrative Department of Statistics (DANE) and CRT
-7,4% -7,4%
-21,4%
-1,4% -1,9%
4,5%4,9%5,5%6,5%7,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 31,7%
Accum. Var. Mobile Telephony: - 34,8%
In the period 2001-2006, the accumulated in� ation was 31.7% remaining the annual variation rate sFigure.
Regarding Mobile Telephony, its average revenues per user (ARPU) evolution was negative. A signi� cant decrease of 21.4% was observed in 2003. From 2004 an increase that has not totally matched the decreases of previous years has been produced.
Figure 4.3.2. Colombia: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source: DANE and CRT
40,9% 40,5% 38,7%
30,4% 29,9%25,8%
19,0%
4,5%
31,7%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
Tran
spor
t
Hea
lth
Food CP
I
Sev
eral
Exp
ense
s
Edu
catio
n
Hou
sing
Cul
ture
Clo
thin
g
Mob
ileTe
leph
ony
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 34,8%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 34.8% decrease, although all the components have shown variation in in� ation. The highest increase was registered by the Transports and Communications sector that has reached a 40.9% rate.
64 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
4.4. Mobile Telephony Contributionto Employment
Figure 4.4.1. Colombia: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 5.46611,7%
Indirect: # 41.29088,3%
Total employment generated by Mobile Telephony: 46.756
The Mobile Telephony industry in Colombia has employed approximately 46,756 people in 2006.
Approximately 5,466 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 41,290 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 7,6 employees are indirectly demanded.
Figure 4.4.2. Colombia: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 35.000 84,8%Sites Installing 1.000 2,4%Towers 1.000 2,4%Mobile Contents (SVA) 850 2,1%Maintennance and Repairs 800 1,9%Terminals Logistic 800 1,9%Network: Radiobase + Troncal Network + Equipments 750 1,8%IT Systems 600 1,5%Terminal Equipments 400 1,0%Electrical Feeding 90 0,2%Indirect Total Employment 41.290 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 84.8% is destined to an outsourcing Sales Team.
4.5. Mobile Telephony Contributionto Connectivity
Figure 4.5.1. Colombia: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : CRT
10.401
21.893
6.1864.5973.265
29.763
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2001 2002 2003 2004 2005 2006Th
ousa
nds
of L
ines
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Colombia had a total of 29.8 million users, while at the end of 2001 only 3.3 million users existed.
Fixed telephony: The � xed lines total was 8.0 million in 2006, signi� cant growth variations were not observed in the period under analysis.
Internet: The total internet connections were of 888 thousand in 2006. This includes all Dial Up and Broadband connections. A signi� cant growth is observed in the period under analysis, since only 262 thousand connections existed in 2001.
Figure 4.5.2. Colombia: Annual Variation Rate Mobile,Fixed Lines Number and Internet Connections 2001-2006
Source : CRT
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%
-30,0%
-10,0%
10,0%
30,0%
50,0%
70,0%
90,0%
110,0%
130,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
811,6%Internet:
’06 vs. ‘01 Var.
238,8%
Fixed: ’06 vs. ‘01 Var. 8,0%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 811.6%; representing together with Ecuador the highest growth registrations in the region. The increase was much higher than the evolution of Fixed Telephony that increased to 8%. Regarding Internet growth it has been signi� cant registering a rate of 238.8%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 65
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 4.5.3. Colombia: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC and CRT
65,4%
48,8%
23,5%
14,2%10,7%
7,7%17,5%
2,0%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
The Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Colombia’s penetration levels reached 65. 4%.
In only 5 years, Mobile telephony modi� ed its penetration level from 7.7% in 2001 to 75.8% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 17.5 % penetration.
Internet connections were increased, but still its penetration levels remain low regarding other services studied. Closing 2006 its penetration level was 2%.
66 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
5. Ecuador
5.1. Mobile Telephony Contribution toGross Domestic Product
Figure 5.1.1. Ecuador: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : Companies Balances and Convergencia Research estimations
181235
418
649
1.056
1.211
1.0181.063
558
342
194187
-100
100
300
500
700
900
1.100
1.300
1.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
3.750Demand:
Accum. ‘01 to ’06
3.363
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $3.750 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $3.363 million of goods and services from 2001 to 2006.
Figure 5.1.2. Ecuador: Average Annual Variation Rate of
Mobile Telephony and GDP 2001-2006
Source : ECLAC, Companies Balances and Convergencia Research estimation
77,6%
29,8%
55,3%
62,6%
14,7%
63,0%76,4%
82,4%
4,4%3,6%
4,2% 3,6%7,9% 4,7%
4,3%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
567,6%
Demand: Var. ’06 vs. ‘01
467,4%
GDP: Var. ’06 vs. ‘01
27,3%
In the 2001-2006 period, the total growth of Mobile Telephony was 567.6% for the Supply and 467.4% for the Demand representing together with Colombia one of the countries with highest growth in the region. In the same period Ecuador’s economy, as a whole, registered a growth rate of 27.3%.
Figure 5.1.3. Ecuador: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, Companies Balances and Convergencia Research estimation
32,1% 28,7% 21,4% 10,0%24,0% 22,5%
567,6%
35,8% 27,3% 23,0%
0,0%
100,0%
200,0%
300,0%
400,0%
500,0%
600,0%
Mob
ileTe
leph
ony
Finn
an.&
Bus
ines
s S
ervs
.
Min
ning
&Q
uarr
y
Con
stru
ctio
n
GD
P
Tran
sp. y
Com
unic
.
Man
ufac
.In
dust
ry
Agr
icul
ture
,H
untin
g, e
tc.
Trad
e
Oth
er S
ervi
ces
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place registering a rate of 567.6%, while Finnancial services, Real States and Companies has been the second sector of highest growth registering a rate of 35.8%. On average, the national economy grew 27.3%.
Figure 5.1.4. Ecuador: Mobile Telephony as percentage ofGDP 2001-2006
Source : ECLAC, Companies Balances and Convergencia Research estimation
0,9%
1,5%
2,0%
2,9% 3,0%
0,9%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 0.9% in 2001. In 2006, the proportion it had been multiplied 3.5 times reaching participation levels of 3%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 67
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
5.2. Mobile Telephony Contributionto National Investment
Figure 5.2.1. Ecuador: Mobile Telephony Investment
(CAPEX) Evolution 2001-2006
Source : Companies Balances and Convergencia Research estimation
2740
78
130
231 232
0
50
100
150
200
250
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to. ’06
738
The Mobile telephony operators in Ecuador have invested approximately US $738 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 5.2.2. Ecuador: Investment / Mobile TelephonySales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, Central Bank of Ecuador(BCE) Companies Balances and Convergencia Research estimation
21,4%
23,3%
21,3% 21,6% 21,9% 21,9%
24,5%
21,5%22,4%
20,9%
19,2%
15,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
22,0%
24,0%
26,0%
28,0%
30,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 20.6% of its Sales, while the country total has invested approximately 21.9% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion similar to those carried out by the rest of the national economy.
5.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 5.3.1. Ecuador: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : BCE, Companies Balances and Convergencia Research estimation
-10,2%-7,2% -8,0%
-5,1%
-18,6%
2,9%3,5%
9,4%
6,1%
1,9%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 25,9%
Accum. Var. Mobile Telephony: - 40,8%
In the period 2001-2006, the accumulated in� ation was 25.9%, remaining the annual variation rate sFigure.
Regarding Mobile Telephony, the evolution of its revenues average per user (ARPU) was negative. A signi� cant decrease of 18.6% was observed in 2006. In the period under analysis, Mobile Telephony has suffered an accumulated decrease of 40.8% in its prices.
Figure 5.3.2. Ecuador: Accumulated Average Variation Rateof CPI and Mobile Telephony ARPU 2001-2006
Source : BCE, Companies Balances and Convergencia Research estimation
114,2%
101,5%
26,2% 23,8%17,3% 17,3%
-19,9%-16,6%-12,3%
-0,4%
25,9%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
Edu
catio
n
Pub
lic S
ervi
ces
Tran
spor
t
CP
I
Hot
els
&R
esta
uran
t
Hea
lth
Food
Hou
sing
Cul
ture
Clo
thin
g
Oth
ers
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 40,8%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 40.8% decrease, although all the components have shown variation in in� ation. The highest increase was registered by the Transports and Communications sector that has reached a 114.2% rate, followed by Public Services registering a 101.5% increase.
68 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
5.4. Mobile Telephony Contributionto Employment
Figure 5.4.1. Ecuador: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 2.13530,8%
Indirect: # 4.80069,2%
Total employment generated by Mobile Telephony: 6.935
The Mobile Telephony industry in Ecuador has employed approximately 6,935 people in 2006.
Approximately 2,135 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 4,800 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 2,3 employees are indirectly demanded.
Figure 5.4.2. Ecuador: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 3.000 62,5%Maintennance and Repairs 300 6,3%Terminals Logistic 300 6,3%Sites Installing 250 5,2%Towers 250 5,2%Network: Radiobase + Troncal Network + Equipments 230 4,8%Terminal Equipments 200 4,2%IT Systems 150 3,1%Mobile Contents (SVA) 90 1,9%Electrical Feeding 30 0,6%Indirect Total Employment 4.800 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and i ts providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 62.5% is destined to an outsourcing Sales Team.
5.5. Mobile Telephony Contributionto Connectivity
Figure 5.5.1. Ecuador: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : Superintendence of Telecommunications (SUPTEL)
3.437
6.246
2.394
1.561859
8.485
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Ecuador had a total of 8. 5 million users, while at the end of 2001 only 859 thousand users existed.
Fixed telephony: The � xed lines total was 1.8 million in 2006; a signi� cant growth was observed due the country counted with 1.3 million lines in 2001.
Internet: The total internet connections were of 823 thousand in 2006. This includes all Dial Up and Broadband connections. A great growth is observed in the period under analysis, since only 86 thousand connections existed in 2001.
Figure 5.5.2. Ecuador: Annual Variation Rate Number of Mobile,Fixed Lines and Internet Connections 2001-2006
Source : SUPTEL
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
40,0%
80,0%
120,0%
160,0%
200,0%
240,0%
280,0%
320,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
887,6%
Internet:’06 vs. ‘01 Var.
861,7%
Fixed: ’06 vs. ‘01 Var.
32,9%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 887.6% the highest registered in the region. Though, mobile growth is much higher than the evolution of Fixed Telephony it has also increased registering a signi� cant rate of 32.9%. Regarding Internet growth it has been, as Mobile Telephony, the highest of the region registering a rate of 861.7%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 69
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 5.5.3. Ecuador: Mobile, Fixed Lines andInternet Connections Penetration 2001-2006
Source: SUPTEL
63,3%
47,3%
26,4%
18,6%12,3%
6,9% 13,2%6,1%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Ecuador’s penetration levels had reached 63. 3%.
In only 5 years, Mobile telephony modi� ed its penetration level from 6.9% in 2001 to 63.3% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity had reached penetration levels of 13.2% at the end of 2006.
Internet connections were increased generating a penetration level of 6.1% closing 2006.
70 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
6. Peru
6.1. Mobile Telephony Contribution toGross Domestic Product
Figure 6.1.1. Peru: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : Supervisor Organism of Private Investment in Telecommunications (OSIPTEL), Companies Balances and Convergencia Research estimations
533
625
786
909
1.012
1.303
907
1.148
806
680
554534
-100
100
300
500
700
900
1.100
1.300
1.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
5.169Demand: Accum. ‘01 to ’06
4.628
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $5.169 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $4.628 million of goods and services from 2001 to 2006.
Figure 6.1.2. Peru: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Central Reserve Bank of Peru (BCRP), OSIPTEL, Companies Balances and Convergencia Research estimations
25,8%
17,2%
15,7%
11,3%
28,7%
18,6%22,7%
12,6%
26,5%
3,7%
5,2%3,9%
5,2%6,4%
8,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
144,3%
Demand: Var. ’06 vs. ‘01
114,9%
GDP: Var. ’06 vs. ‘01 32,2%
In the 2001-2006 period, the total growth of Mobile Telephony was 144.3% for the Supply and 114.9% for the Demand. In the same period Peru’s economy, as a whole, registered a growth rate of 32.2%.
Figure 6.1.3. Peru: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Public Services
Source : ECLAC, BCRP, OSIPTEL, Companies Balances and Convergencia Research estimations
35,6% 33,3%23,9%
30,9%33,2%46,5%
144,3%
29,4%32,2%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
160,0%
Mob
ileTe
leph
ony
Con
stru
ctio
n
Min
ning
&Q
uarr
y
Man
ufac
.In
dust
ry
Trad
e
GD
P
Oth
er S
ervi
ces
Pub
lic S
ervi
ces
Agr
icul
ture
,H
untin
g, e
tc.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to rates of the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 114.3% while Constructions has been the second sector of highest growth registering a rate of 46.5%. On average, the national economy grew 32.2%.
Figure 6.1.4. Peru: Mobile Telephony as percentageof GDP 2001-2006
Source : ECLAC, BCRP, OSIPTEL, Companies Balances and Convergencia Research estimations
1,1%
1,3% 1,3% 1,3%1,4%
1,0%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
1,4%
1,6%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1% in 2001. In 2006, the proportion had reached participation levels of 1.4%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 71
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
6.2. Mobile Telephony Contributionto National Investment
Figure 6.2.1. Peru: Mobile Telephony Investment (CAPEX)Evolution 2001-2006
Source : OSIPTEL, Companies Balances and Convergencia Research estimations
115
168154 150
207
276
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to. ’06
1.069
The Mobile telephony operators in Peru have invested approximately US $1.069 million in Capital Expenditures (CAPEX) during the 2001–2006 period.
Figure 6.2.2. Peru: Investment / Mobile Telephony Sales vs.Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, BCRP, OSIPTEL, Companies Balances and Convergencia Research estimations
18,6%17,5% 17,8% 17,9%
18,8%18,1%
24,3% 25,2%
19,6%
23,3%
32,1%
21,5%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 24.3% of its Sales, while the country total has invested approximately 18.1% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, higher than those carried out by the rest of the national economy.
6.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 6.3.1. Peru: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : National Institute of Statistics and Informatics (INEI), OSIPTEL, Companies Balances and Convergencia Research estimations
-10,5%
-1,5%
-13,7%
-19,2%
-13,2%
1,1%1,5%1,5% 2,5%3,5%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 10,5%
Accum. Var. Mobile Telephony: - 46,7%
In the period 2001-2006, the accumulated in� ation was 10.5%, remaining the annual variation rate sFigure.
Regarding Mobile Telephony, the evolution of its average revenues per user (ARPU) was negative. Signi� cant decreases are observed year to year. The variation in the period under analysis shows an accumulated decrease of 46.7%.
Figure 6.3.2. Peru: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : INEI, OSIPTEL, Companies Balances and Convergencia Research estimations
21,3%17,6%
11,7% 9,6% 9,0%6,8%
-1,5%
6,6%
10,5%
-60,0%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
Hou
sing
Tran
sp.&
C
omun
icac
.
Hea
lth
CP
I
Food
Cul
ture
Clo
thin
g
Furn
iture
Oth
ers
Mob
ileTe
leph
ony
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 46,7%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 46.7%, decrease, although all the components have shown variation in in� ation. The highest increase was registered by the Constructions sector that has reached a 21.3% rate.
72 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
6.4. Mobile Telephony Contributionto Employment
Figure 6.4.1. Peru: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 3.37126,7%
Indirect: # 9.25573,3%
Total employment generated by Mobile Telephony: 12.626
In 2006, approximately 12,626 people were employed by the Mobile Telephony Industry in Peru.
Approximately 3,371 people were directly employed by Mobile Telephony operators. Meanwhile, the industry indirectly generated 9,255 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile Telephony industry, 2,7 employees are indirectly demanded.
Figure 6.4.2. Peru: Indirect Employment generated by
Mobile Telephony in the 1st. link of its Value Chain 2006 Providers of : # %
Outsourcing Sales Team (Sales Agent) 5.500 59,4%Network: Radiobase + Troncal Network + Equipments 1.000 10,8%Sites Installing 800 8,6%Towers 500 5,4%Maintennance and Repairs 400 4,3%Terminals Logistic 300 3,2%IT Systems 280 3,0%Terminal Equipments 200 2,2%Mobile Contents (SVA) 180 1,9%Electrical Feeding 95 1,0%Indirect Total Employment 9.255 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 59.4% is destined to an outsourcing Sales Team.
6.5. Mobile Telephony Contributionto Connectivity
Figure 6.5.1. Peru: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : OSIPTEL
4.093
5.583
2.9302.307
1.793
8.772
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
2001 2002 2003 2004 2005 2006Th
ousa
nds
of L
ines
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Peru had a total of 8.8 million users while at the end of 2001 only 1.8 million users existed.
Fixed telephony: The � xed lines total was 2.4 million in 2006 while in 2001 the total number was 1.6 million.
Internet: The total internet connections were of 1 million in 2006. This includes all Dial Up and Broadband connections. A signi� cant growth is observed in the period under analysis, since only 202 thousand connections existed in 2001.
Figure 6.5.2. Peru: Annual Variation Rate Number ofMobile-Fixed Lines and Internet Connections 2001-2006
Source : OSIPTEL
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
389,2%
Internet:’06 vs. ‘01 Var.
408,9%Fixed:
’06 vs. ‘01 Var.
52,8%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 389.2%. Fixed Telephony has also shown an interesting growth, though lower reaching a 52.8% rate. Regarding Internet it has signi� cantly varied registering a growth rate of 408.9%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 73
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 6.5.3. Peru: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source: CEPAL and OSIPTEL
31,8%
20,5%
15,2%
11,0%8,8%
6,9%
8,7%3,7%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 it had reached penetration levels of 31.8%.
In only 5 years, Mobile telephony modi� ed its penetration level from 6.9% in 2001 to 31.8% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 8.7 % penetration.
Although Internet connections were increased, there is still a long way to go. Closing 2006 its penetration level was 3.7%.
74 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
7. Uruguay
7.1. Mobile Telephony Contribution toGross Domestic Product
Figure 7.1.1. Uruguay: Supply and Demand Evolution ofMobile Telephony 2002 - 2006
Source : National Telecommunications Commission (CONATEL), Balances Published by Companies and Convergencia Research estimations
202
132152
185
344331
184
151
123
190
0
50
100
150
200
250
300
350
400
2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
1.016
Demand: Accum. ‘01 to ’06
978
From 2002 to 2006, Mobile Telephony contributed to national GDP providing approximately US $1.016 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $978 million of goods and services from 2002 to 2006.
Figure 7.1.2. Uruguay: Average Annual Variation Rate of Mobile Telephony and GDP 2002 - 2006
Source : ECLAC, National Institute of Statistics (INE) and Balances Published by Companies and Convergencia Research estimations
15,0%
-34,5%
21,4%
86,5%
21,4%23,5%
80,4%
-35,4%
2,2%11,8%
6,6% 7,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
70,5% Demand: Var. ’06 vs. ‘01
74,6%
GDP: Var. ’06 vs. ‘01 30,3%
In the 2002-2006 period, the total growth of Mobile Telephony was 70.5% for the Supply and 74.6% for the Demand. In the same period Uruguay’s economy, as a whole, registered a growth rate of 30.3%.
. A2.
Figure 7.1.3. Uruguay: Accumulated Average Variation Rateof Mobile Telephony, GDP and Economic Sectors 2002 - 2006
Source : ECLAC, INE and Balances Published by Companies and Convergencia Research estimations
43,5%46,8%
-8,5%
30,3%
43,0%
50,9%
70,5%
18,6%
38,6%
6,9%
-1,7%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
Mob
ileTe
leph
ony
Man
ufac
.In
dust
ry
Min
ning
&Q
uarr
y
Trad
e
Tran
sp. y
Com
unic
.
Agr
icul
ture
,H
untin
g, e
tc.
GD
P
Con
stru
ctio
n
Oth
er S
ervi
ces
Pub
lic S
ervi
ces
Finn
an.&
Bus
ines
s S
ervs
.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in 2002-2006 period are compared to rates of the other economy sectors, it is observed that mobile services occupy the � rst place registering a rate of 70.5%, while Manufacturing has been the second sector of highest growth registering a rate of 50.9%. On average, the national economy grew 30.3%.
Figure 7.1.4. Uruguay: Mobile Telephony as percentageof GDP 2002 - 2006
Source : ECLAC, INE and Balances Published by Companies and Convergencia Research estimations
1,6%1,8%
1,1%1,2%1,2%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
1,4%
1,6%
1,8%
2,0%
2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.6% in 2002. In 2006, the proportion had reached participation levels of 1.8%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 75
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
7.2. Mobile Telephony Contributionto National Investment
Figure 7.2.1. Uruguay: Mobile Telephony Investment(CAPEX) Evolution 2002 – 2006
Source : Balances Published by Companies and Convergencia Research estimations
59
33
4743
64
0
10
20
30
40
50
60
70
2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to. ’06
247
The Mobile telephony operators in Uruguay have invested approximately US $247 million in Capital Expenditures (CAPEX) between 2002 and 2006.
Figure 7.2.2. Uruguay: Investment / Mobile Telephony Sales vs.Investment / GDP Ratios Comparison 2002 - 2006
Source : ECLAC, INE and Balances Published by Companies and Convergencia Research estimations
10,1% 9,4%11,3%
13,1% 13,1%
18,6%
23,5%
31,1%
25,0%
29,3%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for the 2002-2006 period.
On average, the Mobile Telephony industry has invested approximately 25.5% of its Sales, while the country total has invested approximately 11.4% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, much higher than those carried out by the rest of the national economy.
7.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 7.3.1. Uruguay: Annual Average Variation Rate ofCPI and Mobile Telephony ARPU 2002 - 2006
Source : INE and Balances Published by Companies and Convergencia Research estimations
-11,3%
10,7%8,9%
-7,1%
0,0%
6,4%4,7%
14,0%
19,4%
9,2%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 65,4%
Accum. Var. Mobile Telephony: - 0,7%
In the � ve years period 2002-2006, the accumulated in� ation was 65.4%. The years of highest in� ation were 2002 and 2003; signi� cant prices readjustment were produced in these years as a consequence of the currency devaluation and the exit of the crisis ocurred in 2002.
Regarding Mobile Telephony, the evolution of its average revenues per user (ARPU) was negative. A signi� cant decrease was observed in 2002 produced by the local currency devaluation. Eventhough, an increase of 10.7% was produced in 2003 as a consequence of a partial currency revaluation and improvements in consumption; it was not enough to reach a positive accumulated variation rate, therefore the total decrease of the period was 0.7%.
Figure 7.3.2. Uruguay: Accumulated Average Variation Rate of CPI and Mobile Telephony ARPU 2002 - 2006
Source : INE and Balances Published by Companies and Convergencia Research estimations
83,3%76,6%
70,8%
61,0%
53,7%
65,4%
-0,7%
41,7%
48,7%50,9%
69,2%
-10,0%
10,0%
30,0%
50,0%
70,0%
90,0%
110,0%
Furn
iture
Tran
sp.&
C
omun
icac
.
Food
Hou
sing CP
I
Oth
ers
Hea
lth
Rec
reat
ion
Clo
thin
g
Edu
catio
n
Mob
ileTe
leph
ony
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mob
ile T
elep
hony
Var
.: - 0
,7%
Based on the comparison of the accumulated variation rate of in� ation in 5 years, between the different components of Consumer Price Index and Mobile Telephony; it is observed the industry’s de� ationary character that accumulated a 0.7% decrease in the period, although all the components have shown variation in in� ation. The highest increase was registered by the Real State sector that has reached a rate of 83.3%.
76 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
7.4. Mobile Telephony Contributionto Employment
Figure 7.4.1. Uruguay: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 74614,5%
Indirect: # 4.40585,5%
Total employment generated by Mobile Telephony: 5.151
In 2006, approximately 5,151 people were employed by the Mobile Telephony Industry in Uruguay.
Approximately 746 people were directly employed by Mobile Telephony operators. Meanwhile, the industry indirectly generated 4,405 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile Telephony industry in 2006, 5,9 employees are indirectly demanded.
Figure 7.4.2. Uruguay: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 3.500 79,5%Sites Installing 250 5,7%Network: Radiobase + Troncal Network + Equipments 200 4,5%IT Systems 110 2,5%Electrical Feeding 95 2,2%Maintennance and Repairs 80 1,8%Terminals Logistic 80 1,8%Terminal Equipments 50 1,1%Mobile Contents (SVA) 20 0,5%Towers 20 0,5%Indirect Total Employment 4.405 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 79.5% is destined to an outsourcing Sales Team.
7.5. Mobile Telephony Contributionto Connectivity
Figure 7.5.1. Uruguay: Number of Mobile- Fixed Lines andInternet Connections Evolution 2001-2006
Source : Telecommunications Services Regulatory Unit (URSEC)
600
1.155
498514520
2.330
0
500
1.000
1.500
2.000
2.500
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Uruguay had a total of 2.3 million users while at the end of 2001 only 520 thousand users existed.
Fixed telephony: The � xed lines total was 987 thousand in 2006 remaining this number sFigure during all the period.
Internet: The total internet connections were of 210 thousand in 2006. This includes all Dial Up and Broadband connections.
Figure 7.5.2. Uruguay: Annual Variation Rate Mobile- Fixed Lines and Internet Connections Number 2001-2006
Source: URSEC
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
110,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
348,1%
Fixed: ’06 vs. ‘01 Var.
3,8%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 348.1%. Fixed Telephony has practically not varied. Regarding Internet it only registers the 12.3% variation rate of 2005-2006.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 77
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 7.5.3. Uruguay: Mobile- Fixed Lines and
Internet Connections Penetration 2001-2006
Source: ECLAC and URSEC
15,7% 15,5% 15,0% 18,1%
34,8%
70,1%
29,7%
6,3%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 it had reached penetration levels of 70.1%. In only 5 years, Mobile telephony modi� ed its penetration level from 15.7% in 2001 to 70.1% in 2006. Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 29.7 % penetration. Internet connections were increased; closing 2006 its penetration level was 6.3%.
78 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
8. Venezuela
8.1. Mobile Telephony Contribution toGross Domestic Product
Figure 8.1.1. Venezuela: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : National Telecommunications Commission (CONATEL), Balances Published by Companies and Convergencia Research estimations
1.747
1.097 1.094
1.517
2.704
3.849
2.429
3.555
1.247
747899
1.480
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
12.008 Demand: Accum. ‘01 to ’06
10.357
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $12.008 million of goods and services. With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $10.357 million of goods and services from 2001 to 2006.
Figure 8.1.2. Venezuela: Average Annual Variation Rate of Mobile
Source : ECLAC, Central Bank of Venezuela (BCV), CONATEL Balances Published by Companies and Convergencia Research estimations
-0,3%
-37,2%
38,8%
78,2%
42,4%
67,0%
-17,0%
94,8%
46,3%
-39,3%
-8,9% -7,8%
18,3% 10,3% 10,3%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
120,3%
Demand: Var. ’06 vs. ‘01
140,1%
GDP: Var. ’06 vs. ‘01
21,1%
In the 2001-2006 period, the total /growth of Mobile Telephony was 120.3% for the Supply and 140.1% for the Demand. In the same period Venezuela’s economy, as a whole, registered a growth rate of 21.1%.
Figure 8.1.3. Venezuela: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, BCV, CONATEL, Balances Published by Companies and Convergencia Research estimations
42,8%34,3%
16,2% 12,8%
-3,6%
27,2%18,9%
120,3%
45,6%32,3% 21,1%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
Mob
ileTe
leph
ony
Tran
sp. y
Com
unic
.
Finn
an.&
Bus
ines
s S
ervs
.
Agr
icul
ture
and
Trad
e
Oth
er S
ervi
ces
Pub
lic S
ervi
ces
GD
P
Man
ufac
.In
dust
ry
Min
ning
&Q
uarr
y
Con
stru
ctio
n
Oil
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 120.3% while Transports and Communications has been the second sector of highest growth registering a rate of 45.6%. Meanwhile, the Oil sector, the main activity in Venezuela decreased to 3.6%. On average, the national economy grew 21.1%.
Figure 8.1.4. Venezuela: Mobile Telephony aspercentage of GDP 001-2006
Source : ECLAC, BCV, CONATEL, Balances Published by Companies and Convergencia Research estimations
1,2% 1,3% 1,3%
1,9%
2,1%
1,4%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.4% in 2001. In 2006, the proportion had reached participation levels of 2.1%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 79
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
8.2. Mobile Telephony Contributionto National Investment
Figure 8.2.1. Venezuela: Mobile Telephony Investment(CAPEX) Evolution 2001-2006
Source : CONATEL, Balances Published by Companies and Convergencia Research estimations
430
238
85
196
469
795
0
100
200
300
400
500
600
700
800
900
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to. ’06
2.213
The Mobile telephony operators in Venezuela have invested approximately US $2.213 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 8.2.2. Venezuela: Investment /Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, BCV, CONATEL, Balances Published by Companies and Convergencia Research estimations
20,0%
20,2%18,3%
15,5%
21,9%24,1%
24,6%
21,7%
7,8%
12,9%
20,6%
17,4%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 17.5% of its Sales, while the country total has invested approximately 20% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, slightly lower to those carried out by the rest of the national economy.
8.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 8.3.1. Venezuela: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : BCV, CONATEL, Balances Published by Companies and Convergencia Research estimations
-23,6%
30,2%
-16,0%
-7,5%
-20,2%
17,0%14,4%
19,2%
27,1%
31,2%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
2002 2003 2004 2005 2006Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 165,8%
Accum. Var. Mobile Telephony: - 38,3%
In the period 2001-2006, Venezuela’s accumulated in� ation was 165.8%, the highest of the region. Eventhough, the country’s economy was inmerse in a in� ationary process the Mobile Telephony showed a de� ationary evolution regarding its revenues average per user (ARPU). Signi� cant decreases were observed year to year, except 2004. The variation in the period under analysis shows an accumulated decrease of 38.3%.
Figure 8.3.2. Venezuela: Average Annual Variation Rate of
CPI and Mobile Telephony ARPU 2001-2006
Source : BCV, CONATEL, Balances Published by Companies and Convergencia Research estimations
165,8%
-50,0%
0,0%
50,0%
100,0%
150,0%
200,0%
250,0%
300,0%
Food
Res
taur
ant &
Hot
els
Tran
spor
t
Bre
vage
s, A
lcoh
ol &
Tab
c.
Hou
sing
Equ
ipen
t
CP
I
Rec
reat
ion
Per
sona
l Ser
vice
s
Hea
lth
Edu
catio
n
Clo
thin
g
Hou
sing
Ser
vice
s
Com
mun
icat
ions
Ren
ting
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mob
ile T
elep
hony
Var
.: -
38,3
%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 38.3% decrease, although all the components have shown a very signi� cant variation in in� ation. The highest increase was registered by the Food and Beverages sector that has reached a 268.7% rate.
80 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
8.4. Mobile Telephony Contributionto Employment
Figure 8.4.1. Venezuela: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 8.13127,3%Indirect:
# 21.61072,7%
Total employment generated by Mobile Telephony: 29.741
The Mobile Telephony industry in Venezuela has employed approximately 29,741 people in 2006.
Approximately 8,131 people were directly employed by Mobile Telephony operators in 2006. While, the industry has indirectly generated 21,610 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 2,7 employees are indirectly demanded.
Figure 8.4.2. Venezuela: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 18.000 83,3%Network: Radiobase + Troncal Network + Equipments 700 3,2%Sites Installing 600 2,8%Maintennance and Repairs 520 2,4%Mobile Contents (SVA) 490 2,3%Towers 400 1,9%Terminals Logistic 350 1,6%IT Systems 300 1,4%Terminal Equipments 180 0,8%Electrical Feeding 70 0,3%Indirect Total Employment 21.610 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 83.3% is destined to an outsourcing Sales Team.
8.5. Mobile Telephony Contributionto Connectivity
Figure 8.5.1. Venezuela: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : CONATEL
8.421
12.496
7.0156.5426.473
18.789
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Venezuela had a total of 18.8 million users, while at the end of 2001 only 6.5 million users existed. Fixed telephony: The � xed lines total was 4.2 million in 2006, while in 2001 the total number was 2.7 million lines. Internet: The total internet connections were of 761 thousand in 2006. This includes all Dial Up and Broadband connections. A signi� cant growth is observed in the period under analysis, since only 305 thousand connections existed in 2001.
Figure 8.5.2. Venezuela: Annual Variation Rate Mobile-Fixed Lines and Internet Connections Number 2001-2006
Source : CONATEL
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
190,3%
Internet:’06 vs. ‘01 Var.
149,6%
Fixed: ’06 vs. ‘01 Var.
55,9%
The growth rate of Mobile Telephony users in the 2001-2006 period was 190.3%. Fixed Telephony has also shown an interesting growth, though lower registering a 55.9% rate. Regarding Internet service it has signi� cantly varied registering a growth rate of 149.6%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 81
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 8.5.3. Venezuela: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC and CONATEL
69,6%
47,1%
32,3%27,3%26,0%26,2%
15,6%2,8%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Venezuela’s penetration levels had reached 69.6%. In only 5 years, Mobile telephony modi� ed its penetration level from 26.2% in 2001 to 69.9% in 2006. Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during all the period closing 2006 with a 15.6% penetration.
Internet connections were increased generating a penetration level of 2.8% closing 2006.
82 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
9. Costa Rica
9.1. Mobile Telephony Contribution toGross Domestic Product
Figure 9.1.1. Costa Rica: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : Convergencia Research estimations based on ICE Telecommunications Research
395425
482508
565
735
661713709
816
555498
0
100
200
300
400
500
600
700
800
900
1.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
3.109
Demand: Accum. ‘01 to ’06
3.952
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $3.109 million of goods and services. With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $3.952 million of goods and services from 2001 to 2006.
Figure 9.1.2. Costa Rica: Average Annual Variation Rate ofMobile Telephony and GDP 2001-2006
Source : ECLAC, Central Bank of Costa Rica (BCCR) and Convergencia Research estimations based on ICE Telecommunications Research
13,4%
7,6% 5,5%
11,2%
30,1%
-13,2%
47,0%
-6,7%
7,8%
11,5%
2,9% 6,4% 4,3% 5,9%
7,9%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
86,1%Demand:
Var. ’06 vs. ‘01
43,2%
GDP: Var. ’06 vs. ‘01
30,5%
In the 2001-2006 period, the total growth of Mobile Telephony was 86.1% for the Supply and 43.2% for the Demand. In the same period Costa Rica’s economy, as a whole, registered a growth rate of 30.5%.
Figure 9.1.3. Costa Rica: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, BCCR and Convergencia Research estimations based on ICE Telecommunications Research
51,2%45,6%
18,7% 16,2% 14,4%
33,1%
20,3%
86,1%
71,4%
39,4%
30,5%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
Mob
ileTe
leph
ony
Tran
spor
t &C
omm
unic
atio
n
Min
ning
&Q
uarr
y
Man
ufac
.In
dust
ry
Con
stru
ctio
n
Finn
an.&
Bus
ines
s S
ervs
.
GD
P
Agr
icul
ture
,H
untin
g, e
tc.
Trad
e
Pub
lic S
ervi
ces
Oth
er S
ervi
ces
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupied the � rst place, registering a rate of 86.1% while Transport and Communications has been the second sector of highest growth registering a rate of 71.4%. On average, the national economy grew 30.5%.
Figure 9.1.4. Costa Rica: Mobile Telephony as percentage ofGDP 2001-2006
Source : ECLAC, BCCR and Convergencia Research estimations based on ICE Telecommunications Research.
2,5%2,8% 2,7% 2,8%
3,3%
2,4%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 3.3% in 2001. In 2006, the proportion reached participation levels of 2.4%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 83
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
9.2. Mobile Telephony Contributionto National Investment
Figure 9.2.1. Costa Rica: Mobile Telephony Investment (CAPEX)Evolution 2001-2006
Source : Convergencia Research estimations based on ICE Telecommunications Research.
264298
521
375352
270
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
2.081
The Mobile telephony operators in Costa Rica have invested approximately US $2.081 million in Capital Expenditures (CAPEX) during 2001 and 2006.
Figure 9.2.2. Costa Rica: Investment / Mobile Telephony Sales vs. Investment / GDP Relation Comparison B 2001-2006
Source : ECLAC, BCCR and Convergencia Research estimations based on Research of ICE Telecommunications
18,8%19,0%18,6%19,2%18,9%18,3%
67,0%70,2%
108,2%
73,8%
36,7%
62,3%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period. On average, the Mobile Telephony industry has invested approximately 69.7% of its Sales, while the country total has invested approximately 18.8% of its GDP.
The investment effort of Mobile Telephony in Costa Rica is in proportion, much higher to those carried out by the rest of the national economy, even to that observed by Mobile Industry in the other region’s countries.
9.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 9.3.1. Costa Rica: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Note: The CPI, June of 2006Source : National Intitute of Statistics and Census (INEC) and Regulatory Authority for the Public Services (ARESEP)
-4,4%
-23,1%
-28,1%
0,8% 0,0%
6,3%
14,1%13,1%9,9%9,7%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 65,3%
Accum. Var. Mobile Telephony:
- 46,7%
In the period 2001-2006, the accumulated in� ation in Costa Rica was 65.3%. Eventhough, the in� ationary process that Costa Rica’s economy was inmersed, the Mobile Telephony showed a 46.7% negative evolution of its revenues average per user (ARPU).
Figure 9.3.2. Costa Rica: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Nota: The CPI, June of 2006 Source : INEC and ARESEP
98,5%
68,5%61,8% 61,5% 57,9% 57,8% 56,4%
25,3%
-46,7%
65,3%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
Tran
spor
t
Food
& B
reva
ges
CP
I
Furn
iture
&A
cces
orie
s
Hou
sing
Oth
er g
oods
&se
rvic
es Hea
lth
Rec
reat
ion
&E
duca
tion
Clo
thin
g
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 46,7%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is observed that Transports and Communications sector registered the highest increase reaching a rate of 98.5%. Mobile Telephony showed a negative variation of 46.7% in the period.
84 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
9.4. Mobile Telephony Contribution to Employment
Figure 9.4.1. Costa Rica: Total Employment (Direct + Indirect) generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 4.95623,0%Indirect:
# 16.54877,0%
Total employment generated by Mobile Telephony: 21.504
The Mobile Telephony industry in Costa Rica employed approximately 21,504 people in 2006.
Approximately 4,956 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 16,548 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 3,3 employees are indirectly demanded.
Figure 9.4.2. Costa Rica: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 15.000 90,6%Terminal Equipments 800 4,8%Maintennance and Repairs 250 1,5%Sites Installing 200 1,2%Terminals Logistic 150 0,9%Network: Radiobase + Troncal Network + Equipm 90 0,5%IT Systems 38 0,2%Towers 15 0,1%Electrical Feeding 5 0,0%Indirect Total Employment 16.548 100,0%Source : Study carried out by Convergencia Research according to datagiven by Mobile Telephony Companies and its Providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 90.6% is destined to an outsourcing Sales Team.
9.5. Mobile Telephony Contributionto Connectivity
Figure 9.5.1. Costa Rica: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : ARESEP and RACSA
912 927756
460311
1.465
0
200
400
600
800
1.000
1.200
1.400
1.600
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, Costa Rica had a total of 1.5 million users, while at the end of 2001 only 311 thousand users existed. Fixed telephony: The total � xed lines were 1.0 million in 2006; while the country counted with 820 thousand lines in 2001. Internet: The total internet connections were of 90 thousand in 2005 (last of� cial data). This includes all Dial Up and Broadband connections. A signi� cant growth is observed in the period under analysis, since only 29 thousand connections existed in 2001.
Figure 9.5.2. Costa Rica: Annual Variation Rate Mobile-Fixed Lines and Internet Connections Number 2001-2006
Source : ARESEP and RACSA
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
370,6%
Internet:’06 vs. ‘01 Var.
212,5%
Fixed: ’06 vs. ‘01 Var
27,6%
The growth rate of Mobile Telephony users in the 2001-2006 period was 370.6%. Fixed Telephony has also shown an interesting increase, a 27.6% rate. Regarding Internet service it has signi� cantly varied, registering a rate of 212.5%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 85
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 9.5.3. Costa Rica: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC, ARESEP and RACSA
33,3%
21,5%21,5%
18,1%
11,2%
7,8%
23,8%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Costa Rica’s penetration levels had reached 33.3%. Anyway, this percentage is low compares to the regional average. In only 5 years, Mobile telephony modi� ed its penetration level from 7.8% in 2001 to 33.3% in 2006. Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with 23.8% penetration. Internet connections were increased; although, closing 2005 a penetration level of 2.1% was registered.
86 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
10. El Salvador
10.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 10.1.1. El Salvador: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : The General Superintendency of Electricity and Telecommunications (SIGET), and Convergencia Research estimations
194212 247
362
515
760
431
663
311
200207204
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
2.291 Demand: Accum. ‘01 to ’06
2.016
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $2.291 million of goods and services. With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $2.016 million of goods and services from 2001 to 2006.
Figure 10.1.2. El Salvador: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Central Reserve Bank of El Salvador (BCR), SIGET and Convergencia Research estimations
16,7%
9,1%
46,3%42,3% 47,6%
55,3%
-3,1%
38,4%
53,8%
1,3%2,3% 2,3% 1,8% 2,8%
4,2%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
291,1%Demand:
Var. ’06 vs. ‘01
224,4%GDP: Var. ’06 vs. ‘01
14,1%
In the 2001-2006 period, the total growth of Mobile Telephony was 291.1% for the Supply and 224.4% for the Demand. In the same period El Salvador’s economy, as a whole, registered a growth rate of 14.1%.
. A2. Bras
Figure 10.1.3. El Salvador: Accumulated Average Variation Rate of Mobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, BCR, SIGET and Convergencia Research estimations
24,1% 18,1%6,4% 6,1% -2,1%
14,1%13,1%
291,1%
25,3% 14,7% 13,6%
-50,0%
0,0%
50,0%
100,0%
150,0%
200,0%
250,0%
300,0%
350,0%
Mob
ileTe
leph
ony
Tran
sp. y
Com
unic
.
Pub
lic S
ervi
ces
Agr
icul
ture
,H
untin
g, e
tc.
Finn
an.&
Bus
ines
s S
ervs
.
GD
P
Trad
e
Man
ufac
.In
dust
ry
Con
stru
ctio
n
Oth
er S
ervi
ces
Min
ning
&Q
uarr
y
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 291.1% while Transport and Communications has been the second sector of highest growth registering a 25.3% increase. On average, the national economy grew 14.1%.
Figure 10.1.4. El Salvador: Mobile Telephony as percentageof GDP 2001-2006
Source : ECLAC, BCR, SIGET and Convergencia Research estimations
1,5% 1,6%
2,3%
3,0%
4,2%
1,4%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
4,5%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.4% in 2001. In 2006, the proportion had been triplicated reaching participation levels of 4.2%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 87
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
10.2. Mobile Telephony Contributionto National Investment
Figure 10.2.1. El Salvador: Mobile Telephony Investment(CAPEX) Evolution 2001-2006
Source : SIGET and Convergencia Research estimations
54
2720
54
70
123
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
348
The Mobile telephony operators in El Salvador have invested approximately US $348 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 10.2.2. El Salvador: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, BCR, SIGET and Convergencia Research estimations
16,1%
15,4%15,6%16,7%16,6%16,4%
27,8%
12,8%
8,0%
15,0%
16,2%
13,6%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 15.6% of its Sales, while the country total has invested approximately 16.1% of its GDP. It can be concluded that the Mobile Telephony investments were in proportion similar to those carried out by the rest of the national economy..
10.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 10.3.1. El Salvador: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2004 - 2006
Source : General Direction for Census and Statistics (DIGESTYC) and SIGET
-25,7%
-1,0%2,0%
4,9%4,3%5,4%
-30,0%
-25,0%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI:
+ 15,2%
Accum. Var. Mobile Telephony:
- 25,0%
In the period 2004-2006, the accumulated in� ation in El Salvador was 15.2%.
Mobile Telephony has showed a de� ationary evolution regarding its revenues average per user (ARPU). A signi� cant decrease of 25.7% was observed in 2004. The variation in the period under analysis shows an accumulated decrease of 25%.
Figure 10.3.2. El Salvador: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2004 - 2006
Source : DIGESTYC and SIGET
15,2%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
Tran
spor
t
Alc
ohol
&Ta
bacc
o
Hou
sing
Equ
ipm
ent
Food
&B
ever
ages CP
I
Res
taur
ant &
Hot
els
Hea
lth
Pub
lic S
ervi
ces
Edu
catio
n
Rec
reat
ion
&C
ultu
re
Oth
ers
Clo
thin
g
Com
mun
icat
ions
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 25,0%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 25% decrease in 3 years, eventhough all the components have showed variation in in� ations. The Transport sector was the highest increased component reaching an increase rate of 29.6%.
88 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
10.4. Mobile Telephony Contribution to Employment
Figure 10.4.1. El Salvador: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Telephony Companies and its providers
Direct: # 1.47327,0%Indirect:
# 3.97873,0%
Total employment generated by Mobile Telephony: 5.451
The Mobile Telephony industry in El Salvador employed approximately 5,451 people in 2006.
Approximately 1,473 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 3,978 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 2,7 employees are indirectly demanded.
Figure 10.4.2. El Salvador: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 3.200 80,4%Sites Installing 400 10,1%Terminals Logistic 120 3,0%Maintennance and Repairs 70 1,8%Terminal Equipments 50 1,3%Network: Radiobase + Troncal Network + Equipments 40 1,0%IT Systems 40 1,0%Towers 25 0,6%Mobile Contents (SVA) 15 0,4%Others 15 0,4%Electrical Feeding 3 0,1%Indirect Total Employment 3.978 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 80.4% is destined to an outsourcing Sales Team.
10.5. Mobile Telephony Contributionto Connectivity
Figure 10.5.1. El Salvador: Number of Mobile-Fixed Linesand Internet Connections Evolution 2001-2006
Source : SIGET
1.833
2.412
1.150889858
3.852
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006, El Salvador had a total of 3. 9 million users, while at the end of 2001 only 858 thousand users existed.
Fixed telephony: The � xed lines total was 1.0 million at the end of 2006; while the total number were only 650 thousand lines in 2001.
Internet: The total internet connections were of 185 thousand in 2006. This includes all Dial Up and Broadband connections. A signi� cant growth was observed in the period under analysis, since only 71 thousand connections existed in 2001.
Figure 10.5.2. El Salvador: Annual Variation Rate Number ofMobile-Fixed Lines and Internet Connections 2001-2006
Source : SIGET
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
349,0%Internet: Var. '06 vs. '01
161,3%
Fixed: ’06 vs. ‘01 Var.
59,4%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 349%. Fixed Telephony has also shown a signi� cant increase reaching a 59.4% rate. Regarding Internet service it registered a signi� cant variation of 161.3% growth.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 89
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 10.5.3. El Salvador: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC and SIGET
55,1%
35,1%
27,1%
17,3%13,6%13,4%
14,8%
2,6%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service due its contribution to National Connectivity. At the end of 2006, El Salvador’s penetration levels had reached 55.1%.
In only 5 years, Mobile telephony modi� ed its penetration level from 13.4% in 2001 to 55.1% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 14.8% penetration.
Internet connections were increased during the period reaching a penetration level close to 2.6% ending 2006.
90 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
11. Guatemala
11.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 11.1.1. Guatemala: Supply and Demand Evolutionof Mobile Telephony 2003 - 2006
Source : Companies Balances and Convergencia Research estimations
327
620
1.089
1.325
1.003921
548
271
0
200
400
600
800
1.000
1.200
1.400
1.600
2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘03 to ’06
3.360Demand: Accum. ‘03 to ’06
2.743
From 2003 to 2006, the Mobile Telephony contributed to national GDP providing approximately US $3.360 million of goods and services.
With respect to Demand, the Mobile Telephony contributed to GDP purchasing approximately US $2.743 million of goods and services from 2003 to 2006.
Figure 11.1.2. Guatemala: Average Annual Variation Rate of Mobile Telephony and GDP 2003 - 2006
Source : ECLAC, Guatemala Bank (BANGUAT) Balances Published by Companies and Convergencia Research estimations
75,7%89,7%
21,7%
8,9%
68,2%
102,0%
3,2% 3,5%4,9%0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘03
305,6%Demand: Var. ’06 vs. ‘03
270,1%GDP:
Var. ’06 vs. ‘0311,9%
In 2003-2006 period, the total growth of Mobile Telephony was 305.6% for the Supply and 270.1% for the Demand. In the same period Guatemala’s economy, as a whole, registered a growth rate of 11.9%.
. A2. Brasil
Figure 11.1.3. Guatemala: Accumulated Average Variation Rateof Mobile Telephony, GDP and Economic Sectors 2003 - 2006
Source : ECLAC, BANGUAT Balances Published by Companies and Convergencia Research estimations
23,0%8,2% 3,1%
-0,9%
11,9%10,4% 8,8%
305,58%
35,1%11,3% 8,8%
-50,00%
0,00%
50,00%
100,00%
150,00%
200,00%
250,00%
300,00%
350,00%
Mob
ileTe
leph
ony
Tran
sp. y
Com
mun
ic.
Con
stru
ctio
n
GD
P
Finn
an.&
Bus
ines
s S
ervs
.
Pub
lic S
ervi
ces
Man
ufac
.In
dust
ry
Trad
e
Agr
icul
ture
,H
untin
g, e
tc.
Oth
er S
ervi
ces
Min
ning
&Q
uarr
y
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
03
If growth rates of Mobile Telephony accumulated in 2003-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 305.6% while Transports and Communications has been the second sector of highest growth registering a rate of 35.1%. On average, the national economy grew 11.9%.
Figure 11.1.4. Guatemala: Mobile Telephony as percentage ofGDP 2003-2006
Source : ECLAC, BANGUAT, Balances Published by Companies and Convergencia Research estimations
2,6%
4,0%4,3%
1,5%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
4,5%
5,0%
2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.5% in 2003. In 2006, the proportion had been triplicated reaching 4.3% in participation levels.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 91
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
11.2. Mobile Telephony Contributionto National Investment
Figure 11.2.1. Guatemala: Mobile Telephony Investment
(CAPEX) Evolution 2003 – 2006
Source : Companies Balances and Convergencia Research estimations
51
133
198
283
0
50
100
150
200
250
300
2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘03 to ’06
665
The Mobile telephony operators in Guatemala have invested approximately US $665 million in Capital Expenditures (CAPEX) between 2003 and 2006.
Figure 11.2.2. Guatemala: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2003 - 2006
Source : ECLAC, BANGUAT Balances Published by Companies and Convergencia Research estimations
18,6%18,3%18,3%
18,7%
15,8%
21,5%
18,2%
21,3%
14,0%
16,0%
18,0%
20,0%
22,0%
24,0%
2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2003-2006 period.
On average, the Mobile Telephony industry has invested approximately 19.2% of its Sales, while the country total has invested approximately 18.5% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion similar to those carried out by the rest of the national economy.
11.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 11.3.1. Guatemala: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2004 - 2006
Source : Guatemala’s National Intitute of Statistics (INE), and Guatemala’s Superintendence of Telecommunications (SIT)
-6,6%
3,2%
5,8%
8,6%9,2%
5,9%6,3%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI '04 to '06:
+ 14,9%
Accum. Var. '04 to '06 Mobile Telephony:
- 3,7%
In the period 2004-2006, Guatemala’s accumulated in� ation was 14.9%.
Mobile Telephony has shown a de� ationary evolution regarding its revenues average per user (ARPU). A signi� cant decrease of 6.6% was observed in 2005. The variation in the period under analysis shows an accumulated decrease of 3.7.
Figure 11.3.2. Guatemala: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2004 - 2006
Source : INE and SIT
-3,7%
9,7%9,8%11,0%11,9%
19,7%
16,3% 14,9%11,1%
6,1%
13,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
Food
& B
ever
ages
Tran
sp.&
com
mun
icat
ions CP
I
Hea
lth
Hou
sing
Exp
ense
s
Edu
catio
n
Rec
reat
ion
& C
ultu
re
Oth
ers
urni
ture
& H
ousi
ng e
quip
men
t
Clo
thin
g &
Sho
es
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
04
Mob
ile T
elep
hony
Var
.: - 3
,7%
Based on the comparison of the accumulated variation rate of in� ation in the period, between the different components of Consumer Price Index and Mobile Telephony; it is observed the industry’s de� ationary character that accumulated a 3.7% decrease in 3 years, although all the components have shown variation in in� ations. The highest increase was registered by the Food and Beverages sector that reached a 19.7% rate.
92 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
11.4. Mobile Telephony Contribution to Employment
Figure 11.4.1. Guatemala: Total Employment (Direct + Indirect) generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 2.1309,1%
Indirect: # 21.36090,9%
Total employment generated by Mobile Telephony: 23.490
Mobile Telephony industry in Guatemala has employed approximately 23,490 people in 2006.
Approximately 2,130 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 21,360 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by Mobile telephony, 10 employees are indirectly demanded.
Figure 11.4.2. Guatemala: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 20.250 94,8%Sites Installing 300 1,4%Maintennance and Repairs 200 0,9%IT Systems 200 0,9%Towers 200 0,9%Network: Radiobase + Troncal Network + Equipments 100 0,5%Terminal Equipments 90 0,4%Mobile Contents (SVA) 15 0,1%Electrical Feeding 5 0,0%Indirect Total Employment 21.360 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 94.8% is destined to an outsourcing Sales Team.
11.5. Mobile Telephony Contributionto Connectivity
Figure 11.5.1. Guatemala: Number of Mobile-Fixed Lines and Internet Connections Evolution 2001-2001-2006
Note: Internet connections only refers to Broadband connectionsSource : SIT and Convergencia Research estimations
3.168
4.510
2.0351.577
1.146
7.179
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Guatemala had a total of 7.2 million users, while at the end of 2001 only 1.1 million users existed.
Fixed telephony: The � xed lines total was 1.4 million in 2006; while the total number only increased to 756 thousand lines in 2001.
Internet: The total Broadband internet connections were of 75 thousand in 2006.
Figure 11.5.2. Guatemala: Annual Variation Rate Number of Mobile-Fixed Lines 2001-2006
Source : SIT
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
526,2%
Fixed: ’06 vs. ‘01 Var.
62,7%
The growth rate of Mobile Telephony users in the 2001-2006 period was 526.2%. Fixed Telephony has also shown an interesting growth, though lower registering a rate 62.7%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 93
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 11.5.3. Guatemala: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Note: Internet connections only refers to Broadband connectionsSource : ECLAC, SIT and Convergencia Research estimations
55,1%
35,5%
25,6%
16,8%13,4%
10,0%
10,4%0,6%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006, Guatemala’s penetration levels had reached 55.1%.
In only 5 years, Mobile telephony modi� ed its penetration level from 10% in 2001 to 55.1% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during all the period closing 2006 with a 10.4% penetration.
Broadband Internet connections presented a moderate growth generating a penetration level of 0.6% closing 2006.
94 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
12. Panama
12.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 12.1.1. Panama: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : Companies Balances and Convergencia Research estimations
181192
217
330
400
447
302
335
223
149129127
0
50
100
150
200
250
300
350
400
450
500
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
1.767Demand:
Accum. ‘01 to ’06
1.265
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $1.767 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $1.265 million of goods and services from 2001 to 2006.
Figure 12.1.2. Panama: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Ministry of Economy and Finance (MEF), Balances Published by Companies and Convergencia Research estimations
13,3%5,8%
51,9%
21,3%11,8%
49,8%
15,7%
35,2%
11,1%
1,7%
2,2%4,2%
7,5% 6,9%8,1%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
147,0%Demand: Var. ’06 vs. ‘01
164,9%
GDP: Var. ’06 vs. ‘01
32,4%
In the 2001-2006 period, the total growth of Mobile Telephony was 147% for the Supply and 164.9% for the Demand. In the same period Panama’s economy, as a whole, registered a growth rate of 32.4%.
Figure 12.1.3. Panama: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, MEF, Companies Researches and Convergencia Research estimations
66,8% 63,2%
21,6% 19,3%
3,9%
32,4%22,7%
147,0%
110,0%
37,9%
25,1%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
160,0%
Mob
ileTe
leph
ony
Min
ning
&Q
uarr
y
Con
stru
ctio
n
Tran
sp. y
Com
mun
ic.
Trad
e
GD
P
Pub
lic S
ervi
ces
Finn
an.&
Bus
ines
s S
ervs
.
Agr
icul
ture
,H
untin
g, e
tc.
Oth
er S
ervi
ces
Man
ufac
.In
dust
ry
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 147.6% while Minning and Quarrying has been the second sector of highest growth registering a rate of 110%. On average, the national economy grew 32.4%.
Figure 12.1.4. Panama: Mobile Telephony as percentageof GDP 2001-2006
Source : ECLAC, MEF, Companies Researches and Convergencia Research estimations
1,6%1,7%
2,3%
2,6% 2,6%
1,5%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.5% in 2001. In 2006, the proportion has multiplied 1.7 times reaching 2.6% participation levels.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 95
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
12.2. Mobile Telephony Contributionto National Investment
Figure 12.2.1. Panama: Mobile Telephony Investment (CAPEX)Evolution 2001-2006
Source : Companies Balances and Convergencia Research estimations
2419 21
36
4945
0
10
20
30
40
50
60
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
193
The Mobile telephony operators in Panama have invested approximately US $193 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 12.2.2. Panama: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, MEF, Companies Researches and Convergencia Research estimations
15,8%16,8%16,6%17,1%
13,6%
15,2%
13,0%
10,1% 9,7%10,8%
10,0%
12,3%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 11% of its Sales, while the country total has invested approximately 15.8% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, slightly lower to those carried out by the rest of the national economy.
12.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 12.3.1. Panama: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2002 - 2006
Source : General Auditor of the Republic and Division of Statistics and Census (Auditor), Companies Researches and Convergencia Research estimations
-6,9%
-21,3%
-5,2%
-14,3%
3,5%2,9%0,4%0,1%
-30,0%
-25,0%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI :
+ 7,0%
Accum. Var. Mobile Telephony:
- 40,4%
In the � ve years period 2001-2006, Panama’s accumulated in� ation was 7% with sFigure considered annual variation rates.
Regarding Mobile Telephony its revenues average per user evolution (ARPU) was negative. A signi� cant decrease of 21.3% was observed in 2005; accumulated a fall of 40.4% in all the period.
Figure 12.3.2. Panama: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2002 - 2006
Source : General Auditor of the Republic, Companies Researches and Convergencia Research estimations
-40,4%
-0,2%2,1%3,4%
5,5%
17,3%
12,9%9,6%
4,0%
-7,0%
7,0%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
Tran
spor
t
Hou
sing
& P
ublic
Ser
vs.
Food
&B
ever
ages CP
I
Edu
catio
n
Hou
sing
Man
teni
ence
Hea
lth
Oth
ers
Rec
reat
ion
Clo
thin
g &
Sho
es
Mob
ile T
elep
h.
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mobile Telephony Var.: - 40,4%
Based on the comparison of the accumulated variation rate of in� ation in 5 years, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed the industry’s de� ationary character that accumulated a 40.4% decrease in the period, although all the components have shown variation in in� ations. The highest increase was registered by the Transport sector reaching a 17.3% rate.
96 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
12.4. Mobile Telephony Contributionto Employment
Figure 12.4.1. Panama: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by
Mobile Telephony Companies and its providers
Direct: # 2789,3%
Indirect: # 2.71890,7%
Total employment generated by Mobile Telephony: 2.996
The Mobile Telephony industry in Panama employed approximately 2,996 people in 2006.
Approximately 278 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 2,718 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 9,8 employees are indirectly demanded.
Figure 12.4.2. Panama: Indirect Employment generated byMobile Telephony in the 1st. Link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 2.200 80,9%Sites Installing 200 7,4%Maintennance and Repairs 80 2,9%Network: Radiobase + Troncal Network + Equipments 75 2,8%Terminals Logistic 60 2,2%IT Systems 50 1,8%Terminal Equipments 35 1,3%Mobile Contents (SVA) 15 0,6%Electrical Feeding 3 0,1%Indirect Total Employment 2.718 100,0%Source : Study carried out by Convergencia Research according to data given by MobileTelephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 80.9% is destined to an outsourcing Sales Team. It is also important the 7.4% employment level generated among the Sites Installers.
12.5. Mobile Telephony Contributionto Connectivity
Figure 12.5.1. Panama: Number of Mobile-Fixed Lines andInternet Connections Evolution 2001-2006
Source : National Authority of Public Services (ANSEP)
1.260
1.749
692526475
2.174
0
500
1.000
1.500
2.000
2.500
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Panama had a total of 2.2 million users, while at the end of 2001 only 475 thousand users existed.
Fixed telephony: The � xed lines total was 433 thousand in 2006; signi� cant growth variations in the period under analysis were not observed.
Internet: The total internet connections were of 87 thousand in 2006. This includes all Dial Up and Broadband connections. A signi� cant growth is observed in the period under analysis, since only 49 thousand connections existed in 2001.
Figure 12.5.2. Panama: Annual Variation Rate Number ofMobile-Fixed Lines and Internet Connections 2001-2006
Source : ANSEP
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
357,6%
Internet: Var. '06 vs. '01
78,1%
Fixed: ’06 vs. ‘01 Var.
13,4%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 357.6%; much higher than the evolution of Fixed Telephony that has been increaseed in 13.4%. Regarding Internet growth it has been signi� cant registering a 78.1% rate.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 97
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 12.5.3. Panama: Mobile, Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC and ANSEP
66,2%
54,2%
39,7%
22,2%17,2%15,8%
13,2%2,6%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
The Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Panama’s penetration levels had reached 66.2%.
In only 5 years, Mobile telephony modi� ed its penetration level from 15.8% in 2001 to 66.2% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during all the period closing 2006 with a penetration of 13.2%.
The Internet connections growth increased penetration level to 2.6% closing 2006.
98 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
13. Mexico
13.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 13.1.1. Mexico: Supply and Demand Evolution ofMobile Telephony 2001-2006
Source : Companies Balances and Convergencia Research estimations
5.777
6.9828.437
10.900
12.993
15.931
10.626 10.358
8.915
7.411
6.0035.124
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
61.020Demand: Accum. ‘01 to ’06
48.436
From 2001 to 2006, Mobile Telephony contributed to national GDP providing approximately US $61.020 million of goods and services.
With respect to Demand, Mobile Telephony contributed to GDP purchasing approximately US $48.436 million of goods and services from 2001 to 2006.
Figure 13.1.2. Mexico: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, The National Institute of Statistics, Geography and Informatics (INEGI) Balances and Researches of Companies and Convergencia Research estimations
20,8%
20,9%
29,2%
19,2%
22,6%
20,3%
23,5%
19,2%
-2,5%
17,2%
0,8% 1,4%4,2% 2,8%
4,8%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
175,8%
Demand: Var. ’06 vs. ‘01
102,2%
GDP: Var. ’06 vs. ‘01
14,6%
In the 2001-2006 period, the total growth of Mobile Telephony was 175.8% for the Supply and 102.2% for the Demand. In the same period Mexico’s economy, as a whole, registered a growth rate of 14.6%.
Figure 13.1.3. Mexico: Accumulated Average Variation Rate ofMobile Telephony, GDP and Economic Sectors 2001-2006
Source : ECLAC, INEGI, Balances and Researches of Companies and Convergencia Research estimations
25,5% 23,6%
8,7% 8,3% 5,7%14,1% 12,4%
175,8%
36,3% 14,6%12,5%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
160,0%
180,0%
200,0%
Mob
ileTe
leph
ony
Tran
sp. y
Com
mun
ic.
Finn
an.&
Bus
ines
s S
ervs
.
Con
stru
ctio
n
GD
P
Trad
e
Pub
lic S
ervi
ces
Min
ning
&Q
uarr
y
Agr
icul
ture
,H
untin
g, e
tc.
Man
ufac
.In
dust
ry
Oth
er S
ervi
ces
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
If growth rates of Mobile Telephony accumulated in the 2001-2006 period are compared to the other economy sectors, it is observed that mobile services occupy by far the � rst place, registering a rate of 36.3% while Transports and Communications has been the second sector of highest growth registering a rate of 45.6%. On average, the national economy grew 14.6%.
Figure 13.1.4. Mexico: Mobile Telephony as percentageof GDP 2001-2006
Source : ECLAC, INEGI, Balances and Researches of Companies and Convergencia Research estimations
1,1%
1,3%
1,6%1,7%
1,9%
0,9%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
1,4%
1,6%
1,8%
2,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 0.9% in 2001. In 2006, the proportion has been duplicated reaching levels of 1.9% participation.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 99
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
13.2. Mobile Telephony Contributionto National Investment
Figure 13.2.1. Mexico: Mobile Telephony Investment (CAPEX)Evolution 2001-2006
Source : Companies Balances and Convergencia Research estimations
743 759
1.3411.205
1.791
1.224
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
7.063
The Mobile telephony operators in Mexico have invested approximately US $7.063 million in Capital Expenditures (CAPEX) between 2001 and 2006.
Figure 13.2.2. Mexico: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source : ECLAC, INEGI, Balances and Researches of Companies and Convergencia Research estimations
19,4%19,3%19,6%18,9%19,3%20,0%
12,9%
10,9%
15,9%
11,1%
7,7%
13,8%
5,0%
7,0%
9,0%
11,0%
13,0%
15,0%
17,0%
19,0%
21,0%
23,0%
25,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales, compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 12% of its Sales, while the country total has invested approximately 19.4% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, lower to those carried out by the rest of the national economy.
13.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 13.3.1. Mexico: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : Bank of Mexico (Banxico), Federal Comission of Telecommunications (COFETEL), Balances and Researches of Companies and Convergencia Research estimations
1,6%
2,0%
0,4% 0,4%
4,1%
3,3%
5,2%
4,0%
5,7%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI :
+ 24,3%
Accum. Var. Mobile Telephony:
4,4%
In the period 2001-2006, Mexico’s accumulated in� ation was 24.3%.
The evolution shown by Mobile Telephony regarding its revenues average per user (ARPU) was very below the CPI. The variation in the period under analysis shows an accumulated growth of only 4.4%.
Figure 13.3.2. Mexico: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : Banxico, COFETEL, Balances and Researches of Companies and Convergencia Research estimations
31,1%29,3% 28,5% 28,3%
20,3% 19,6%
6,3%3,0% 4,4%
24,3%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
Edu
catio
n &
Rec
reat
ion
Food
&B
ever
ages
Oth
er s
ervi
ces
Hou
sing CP
I
Tran
spor
tatio
n
Hea
lth &
Per
sona
l car
e
Clo
thin
g &
Sho
es
Furn
iture
&D
omes
ticA
cces
orie
s
Mob
ileTe
leph
ony
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mob
ile T
elep
hony
Var
. : 4,4
%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is clearly observed that Mobile Telephony has increased its revenues average very slightly accumulating a positive variation of 4.4%, although all the components of CPI have shown signi� cant variation in in� ations. The highest increase was registered by the Education and Recreation sector reaching a rate of 31.1%.
100 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
13.4. Mobile Telephony Contributionto Employment
Figure 13.4.1. Mexico: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 30.07534,4%
Indirect: # 57.40665,6%
Total employment generated by Mobile Telephony: 87.481
The Mobile Telephony industry in Mexico employed approximately 87.481 people in 2006.
Approximately 30.075 people were directly employed by Mobile Telephony operators in 2006. While, the industry has indirectly generated 57.406 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 1.9 employees are indirectly demanded.
Figure 13.4.2. Mexico: Indirect Employment generated byMobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 33.448 58,3%Terminal Equipments 10.308 18,0%Network: Radiobase + Troncal Network + Equipments 4.600 8,0%Sites Installing 4.000 7,0%Mobile Contents (SVA) 2.100 3,7%Terminals Logistic 1.200 2,1%IT Systems 1.150 2,0%Electrical Feeding 250 0,4%Towers 250 0,4%Others 100 0,2%Indirect Total Employment 57.406 100,0%Source : Study carried out by Convergencia Research according to data given by Mobiles Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 58.3% is destined to an outsourcing Sales Team. It is also important the employment level generated among network providers (radio bases, troncal network and equipments) and Sites Installers.
Mexico together with Brazil are the only producer countries of Terminal Equipments in Latin America and the Caribbean; these are the only countries that have this kind of Industry. Approximately, 10.399 people were employed by this activity in 2006.
13.5. Mobile Telephony Contributionto Connectivity
Figure 13.5.1. Mexico: Mobile-Fixed Lines andInternet Connections Number Evolution 2001-2006
Source : COFETEL and INEGI
38.451
47.129
30.09825.928
21.758
57.016
0
10.000
20.000
30.000
40.000
50.000
60.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Mexico had a total of 57.1 million users, while at the end of 2001 only 21.8 million users existed. Mexico is the second country with the higher number of mobile users in the region behind Brazil.
Fixed telephony: The � xed lines total was 19.9 million in 2006; while in 2001 the total number raised to 13.8 million lines.
Internet: The total internet connections was 4.6 million closing 2006; all Dial-up and Broadband connections are included. An important growth is observed in the period under analysis, since in 2001 1.9 million connections only existed.
Figure 13.5.2. Mexico: Annual Variation Rate of Mobile-Fixed Linesand Internet Connections Number 2001-2006
Source : COFETEL and INEGI
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
162,0%
Internet: Var. '06 vs. '01
146,4%
Fixed: ’06 vs. ‘01 Var.
44,2%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 162%. Fixed Telephony has also shown an interesting growth reaching a 44.2% rate. Regarding Internet service has signi� cantly varied registering a growth rate of 146.4%.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 101
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 13.5.3. Mexico: Mobile- Fixed Lines andInternet Connections Penetration 2001-2006
Source : ECLAC, COFETEL and INEGI
54,2%
45,2%
37,2%
29,4%25,5%
21,6%
18,9%
4,4%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Mexico’s penetration levels had reached 54.2%.
In only 5 years, Mobile telephony modi� ed its penetration level from 21.6% in 2001 to 54.2% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during all the period closing 2006 with an 18.9% penetration.
Internet connections were increased closing 2006 with a penetration level of 4.4%.
102 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
14. Jamaica
14.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 14.1.1. Jamaica: Supply and Demand Evolution ofMobile Telephony 2003 - 2006
Source: Companies Reports and Balances and Convergencia Research estimations
242257 266
299278
346344347
0
50
100
150
200
250
300
350
400
450
500
2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘03 to ’06
1.065
Demand: Accum. ‘03 to ’06
1.315
From 2003 to 2006, the Mobile Telephony contributed to national GDP providing approximately US $1.065 million of goods and services.
With respect to Demand, the Mobile Telephony contributed to GDP purchasing approximately US $1.315 million of goods and services from 2003 to 2006.
Figure 14.1.2. Jamaica: Average Annual Variation Rate of Mobile Telephony and GDP 2003 - 2006
Source : ECLAC, Bank of Jamaica (BOJ), The Economist, Balances and Researches of Companies and Convergencia Research estimations
3,6%
6,5%
12,3%
-19,7%
0,7%-1,1%
0,9% 1,4%2,6%
-25,0%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘03
23,9%
Demand: Var. ’06 vs. ‘03
-20,0%
GDP: Var. ’06 vs. ‘03
5,0%
In the 2003-2006 period, the total increase of Mobile Telephony was 23.9% for the Supply and -20% for the Demand. In the same period Jamaica’s economy, as a whole, registered a growth rate of 5%.
During the years 2003, 2004 and 2005, the Mobile Telephony industry carried out an important investment effort as consequence of the market opening (see � gure 14.2.2.) what produced a signi� cant increase in goods and services demand. In 2006, the OPEX and CAPEX levels represented standard levels of the industry.
. A2. Brasil
Figure 14.1.3. Jamaica: Mobile Telephony as percentageof GDP 2003 - 2006
Source : ECLAC, BOJ, The Economist, Balances and Researches of Companies and Convergencia Research estimations
2,9%2,7%
2,9%2,9%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP remained in 2.9% from 2003 to 2006.
14.2. Mobile Telephony Contributionto National Invesitment
Figure 14.2.1. Jamaica: Mobile Telephony Investment (CAPEX)Evolution 2003 – 2006
Source : Companies reports and balances and Convergencia Research estimations
178
146 142
66
0
20
40
60
80
100
120
140
160
180
200
2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘03 to ’06
531
The Mobile telephony operators in Jamaica have invested approximately US $531 million in Capital Expenditures (CAPEX) between 2003 and 2006 period.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 103
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Figure 14.2.2. Jamaica: Investment / Mobile Telephony Sales vs. Investment / GDP Relation Comparison 2003 - 2006
Source : Companies reports and balances and Convergencia Research estimations
178
146 142
66
0
20
40
60
80
100
120
140
160
180
200
2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘03 to ’06
531
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales compared to the relation of Investment as percentage of Gross Domestic Product at national level for 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 51.3% of its Sales, while the country total has invested approximately 30.3% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion higher than those carried out by the rest of the national economy and even higher than those carried out by the industry in the rest of the region’s countries, except Costa Rica.
14.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 14.3.1. Jamaica: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : Statistical Institute of Jamaica (STATINJA) and Office of Utilities Regulation (OUR)
-4,4%
-14,3%
18,6%
0,0%
5,8%
12,9%13,7%
14,1%7,3%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI :
+ 66,2%
Accum. Var. Mobile Telephony: -2,8%
In the 5 years period 2001-2006, Jamaica’s accumulated in� ation was 66.2%.
In spite of the in� ationary process in which the Mobile Telephony was developed it showed a de� ationary evolution regarding its revenues average per user (ARPU). The variation in the period under analysis shows an accumulated decrease of 2.8%.
Figure 14.3.2. Jamaica: Accumulated Average Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : STATINJA and OUR
98,5%
79,4%74,7%
64,8%
50,5%46,4%
29,1%
66,2%65,4%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
Hou
sing
Fuel
Tran
spor
tatio
n
CP
I
Goo
ds &
Ser
vice
s
Food
&B
ever
ages
Furn
iture
Hea
lth &
Per
sona
l ser
vs.
Clo
thin
g &
Sho
es
Mob
ileTe
leph
ony
Acc
umul
ated
Var
iatio
n %
’06
vs. ‘
01
Mob
ile T
elep
hony
Var
.: -
28%
Based on the comparison of the accumulated variation rate of in� ation, between the different components of Consumer Price Index and Mobile Telephony; it is observed that Mobile Telephony has accumulated a 2.8% negative variation, although all the CPI components have shown signi� cant variation in in� ations. The highest increase was registered by Housing sector that has reached a 98.5% rate.
14.4. Mobile Telephony Contributionto Employment
Figure 14.4.1. Jamaica: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given byMobile Telephony Companies and its providers
Direct: # 43521,8%
Indirect: # 1.56178,2%
Total employment generated by Mobile Telephony: 1.996
The Mobile Telephony industry in Jamaica employed approximately 1.996 people in 2006.
Approximately 435 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 1.561 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 3.6 employees were indirectly demanded.
Var.
Tele
foní
a Ce
lula
r: -2
,8%
104 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
14.5. Mobile Telephony Contributionto Connectivity
Figure 14.5.1. Jamaica: Mobile-Fixed Lines Number Evolution2001-2006
Source : OUR, International Telecommunications Union (ITU), Convergencia Research estimations
2.006 2.084
1.800
1.400
680
2.147
0
500
1.000
1.500
2.000
2.500
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed Lines
Mobile telephony: In 2006 Jamaica had a total of 2.1 million users, while at the end of 2001 only 680 thousand users existed.
Fixed telephony: The � xed lines total was 490 thousand closing 2006; while in 2001 the total number was 530 thousand lines.
Figure 14.5.2. Jamaica: Annual Variation Rate ofMobile-Fixed Lines Number 2001-2006
Source : OUR, ITU and Convergencia Research estimations
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%
-10,0%
10,0%
30,0%
50,0%
70,0%
90,0%
110,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
215,7%
Fixed: ’06 vs. ‘01 Var.
- 7,5%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 215.7%; while Fixed Telephony has observed a 7.5% decrease.
Figure 14.5.3. Jamaica: Mobile- Fixed Lines Penetration 2001-2006
Source : OUR, ITU and Convergencia Research estimations
79,5%77,7%75,3%
68,0%
53,3%
26,1%
18,2%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile Lines
Fixed Lines
The Mobile Telephony represented in 2006 the most important telecommunications service regarding its contribution to National Connectivity. At the end of 2006 Jamaica’s penetration levels had reached 79.5%; one of the region’s higher levels.
In only 5 years, Mobile telephony modi� ed its penetration level from 26.1% in 2001 to 79.5% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 18.2% penetration.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 105
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
15. Puerto Rico
15.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 15.1.1. Puerto Rico: Supply and Demand Evolution of Mobile Telephony 2001-2006
Source: Companies Reports and Balances and Convergencia Research estimations
880 896 941
1.032
1.141
1.232
1.0551.134
933
815802807
0
200
400
600
800
1.000
1.200
1.400
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
6.121Demand:
Accum. ‘01 to ’06
5.546
From 2001 to 2006, the Mobile Telephony contributed to national GDP providing approximately US $6.121 million of goods and services.
With respect to Demand, the Mobile Telephony contributed to GDP purchasing approximately US $5.546 million of goods and services from 2001 to 2006.
Figure 15.1.2. Puerto Rico: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : Puerto Rico's Planning Board, Program of Economic and Social Planning (JPPPES), Balances andResearches of Companies and Convergencia Research estimations
5,0%
1,8%
9,7%10,6%
7,9%
14,5%
1,7%
13,1%
7,6%
-0,6%
0,9%
0,1%
3,1%
0,3%0,7%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
40,0%
Demand: Var. ’06 vs. ‘01
40,6%GDP:
Var. ’06 vs. ‘01
5,1%
In the 2001-2006 period, the total increase of Mobile Telephony was 40% for the Supply and 40.6% for the Demand. In the same period Puerto Rico’s economy, as a whole, registered a growth rate of 5.1%.
Figure 15.1.3. Puerto Rico: Mobile Telephony as percentageof GDP 2001-2006
Source : JPPPES, Balances and Researches of Companies and Convergencia Research estimations
1,3% 1,3%1,3% 1,4%
1,4%
1,3%
0,0%
0,5%
1,0%
1,5%
2,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.3% in 2001. In 2006, the proportion had not signi� cantly varied reaching 1.4% levels of participation.
15.2. Mobile Telephony Contributionto National Investment
Figure 15.2.1. Puerto Rico: Mobile Telephony Investment(CAPEX) Evolution 2001-2006
Source : Companies Reports and Balances and Convergencia Research estimations
171185
165182
248 256
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
1.207
The Mobile telephony operators in Puerto Rico have invested approximately US $1.207 million in Capital Expenditures (CAPEX) between 2001 and 2006.
106 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
Figure 15.2.2. Puerto Rico: Investment / Mobile Telephony Sales vs. Investment / GDP Ratios Comparison 2001-2006
Source: JPPPES, Balances and Researches of Companies and Convergencia Research estimations
15,5%
14,4%15,1%15,2%
15,9%
16,9%
19,4%
20,7%
17,6% 17,6%
20,8%21,7%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
22,0%
24,0%
26,0%
2001 2002 2003 2004 2005 2006
Inve
stm
ent %
Investment % / GDPCAPEX % / Sales
In the � gure above it is observed the relation between the Investment (CAPEX) as percentage of Mobile Telephony Total Sales compared to the relation of Investment as percentage of Gross Domestic Product at national level for the 2001-2006 period.
On average, the Mobile Telephony industry has invested approximately 19.6% of its Sales, while the country total has invested approximately 15.5% of its GDP. The conclusion is that the Mobile Telephony investments were in proportion, higher than those carried out by the rest of the national economy.
15.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 15.3.1. Puerto Rico: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source : JPPPES, Balances and Reasearches of Companies and Convergencia Research estimations
-0,7%
2,6%
0,9%1,7%
0,4%
14,7%13,8%
11,9%
7,9%
6,1%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI :
+ 67,2%
Accum. Var. Mobile Telephony:
+ 4,8%
In the period 2001-2006, Puerto Rico’s accumulated in� ation was 67.2%.
The evolution that Mobile Telephony has shown regarding its revenues average per user (ARPU) is very below the CPI. The variation in the period under analysis shows an accumulated growth of only 4.8%.
15.4. Mobile Telephony Contributionto Employment
Figure 15.4.1. Puerto Rico: Total Employment (Direct + Indirect)generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given byMobile Telephony Companies and its providers
Direct: # 71017,6%
Indirect: # 3.33082,4%
Total employment generated by Mobile Telephony: 4.040
The Mobile Telephony industry in Puerto Rico employed approximately 4.040 people in 2006.
Approximately 710 people were directly employed by Mobile Telephony operators in 2006. While, the industry has indirectly generated 3.330 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 4.7 employees are indirectly demanded.
Figure 15.4.2. Puerto Rico: Indirect Employment generated by
Mobile Telephony in the 1st. link of its Value Chain 2006Providers of : # %
Outsourcing Sales Team (Sales Agent) 2.200 66,1%Maintennance and Repairs 500 15,0%Network: Radiobase + Troncal Network + Equipments 280 8,4%Terminals Logistic 130 3,9%Terminal Equipments 120 3,6%IT Systems 50 1,5%Others 50 1,5%Indirect Total Employment 3.330 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 66.1% is destined to an outsourcing Sales Team. It is also important the employment level generated among network providers (radio bases, troncal network and equipments) and Repairment and Maintenance.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 107
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
15.5. Mobile Telephony Contributionto Connectivity
Figure 15.5.1. Puerto Rico: Mobiles Lines Evolution Number2001-2006
Source : Companies Reports and Balances and Convergencia Research estimations
1.772 1.8331.6461.6201.561
1.938
0
400
800
1.200
1.600
2.000
2.400
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
In 2006 Puerto Rico had a total of 1.9 million users, while at the end of 2001 1.6 million users existed.
Figure 15.5.2. Puerto Rico: Annual Variation Rate ofMobile Lines Number 2001-2006
Source : Companies Reports and Balances and Convergencia Research estimations
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
24,2%
The growth rate of Mobile Telephony users has been 24.2% in the 2001-2006 period.
Figure 15.5.3. Puerto Rico: Mobile Lines Penetration 2001-2006
Source: JPPPES, Balances and Researches of Companies and Convergencia Research estimations
49,3%46,9%45,5%
42,4%42,0%40,7%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile Telephony contribution to National Connectivity was a 49.3% penetration level at the end of 2006.
In 5 years, Mobile telephony modi� ed its penetration level from 40.7% in 2001 to 49.3% in 2006.
108 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
16. Dominican Republic
16.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 16.1.1. Dominican Republic: Supply and Demand Evolutionof Mobile Telephony 2001-2006
Source : Convergencia Research estimations in base of company's information
309350
414
486
550
859
467
730
413352
298263
0
100
200
300
400
500
600
700
800
900
1.000
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
2.968Demand: Accum. ‘01 to ’06
2.523
From 2001 to 2006, the Mobile Telephony contributed to national GDP providing approximately US $2.968 million of goods and services.
With respect to Demand, the Mobile Telephony contributed to GDP purchasing approximately US $2.523 million of goods and services from 2001 to 2006.
Figure 16.1.2. Dominican Republic: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Dominican Republic's Central Bank (BCRD), Balances and Researches of Companies and Convergencia Research estimations
18,3%
13,3%17,3%
13,1%
56,3%
5,0% -0,4%2,7% 9,2%
10,7%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
177,6%GDP:
Var. ’06 vs. ‘01
29,9%
In the 2001-2006 period, the total growth of Mobile Telephony was 177.6%. In the same period Dominican Republic’s economy, as a whole, registered a growth rate of 29.9%.
Figure 16.1.3. Dominican Republic: Mobile Telephony as percentageof GDP 2001-2006
Source: ECLAC, BCRD and Convergencia Research estimations
1,4%
2,1%2,2%
1,6%
2,2%
1,3%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
The Mobile Telephony activity as participation percentage regarding nominal GDP was 1.3% in 2001. In 2006, the proportion has been increased 1.8 times reaching participation levels of 2.2%.
16.2. Mobile Telephony Contributionto National Investment
Figure 16.2.1. Dominican Republic: Mobile Telephony Investment (CAPEX) Evolution 2001-2006
Source : Convergencia Research estimations in base of company's information
4653
6273
82
129
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
445
The Mobile telephony operators in Dominican Republic have invested approximately US $445 million in Capital Expenditures (CAPEX) during the 2001 – 2006 period.
16.3. Mobile Telephony Contributionto Employment
Figure 16.3.1. Dominican Republic: Total Employment(Direct + Indirect) generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given byMobile Telephony Companies and its providers
Indirect: # 4.80082,3%
Direct: # 1.03217,7%
Total employment generated by Mobile Telephony: 5.832
The Mobile Telephony industry in Dominican Republic employed approximately 5.832 people in 2006.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 109
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
Approximately 1.032 people were directly employed by Mobile Telephony operators. While, the industry has indirectly generated 4.800 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by the Mobile telephony, 4.6 employees are indirectly demanded.
Figure 16.3.2. Dominican Republic: Indirect Employment generated by Mobile Telephony in the 1st. link of its Value Chain 2006
Providers of : # %
Outsourcing Sales Team (Sales Agent) 3.500 72,9%Maintennance and Repairs 500 10,4%Network: Radiobase + Troncal Network + Equipments 350 7,3%Terminals Logistic 100 2,1%IT Systems 200 4,2%Terminal Equipments 150 3,1%Indirect Total Employment 4.800 100,0%Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and i ts providers
It is observed that from the total employment generated by Mobile Telephony through the � rst link of its Value Chain, 72.9% is destined to an outsourcing Sales Team. It is also important the employment level generated among network providers (radio bases, troncal network and equipments) and Sites Installers.
16.4. Mobile Telephony Contributionto Connectivity
Figure 16.4.1. Dominican Republic: Number of Mobile-Fixed Linesand Internet Connections Evolution 2001-2006
Source: Dominican Institute of Telecommunications (INDOTEL)
2.534
3.623
2.1231.701
1.270
4.606
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Dominican Republic had a total of 4.6 million users, while at the end of 2001 only 1.3 million users existed.
Fixed telephony: The � xed lines total was 897 thousand in 2006; while in 2001 the total number raised 955 thousand lines.
Internet: The total internet connections were 184 thousand in 2006; all Dial-up and Broadband connections are included. An important growth is observed in the period under analysis, since in 2001 64 thousand connections only existed.
Figure 16.4.2. Dominican Republic: Annual Variation Rate ofMobile-Fixed Lines and Internet Connections Number 2001-2006
Source : INDOTEL
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: ’06 vs. ‘01 Var.
262,6%
Internet: Var. '06 vs. '01
185,6%
Fixed: ’06 vs. ‘01 Var.
- 6,1%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 262.6%. Fixed Telephony has also shown a 6.1% decrease. Regarding Internet service has signi� cantly varied registering a growth rate of 185.6%.
Figure 16.4.3. Dominican Republic: Mobile-Fixed Lines andInternet Connections Penetration 2001-2006
Source : INDOTEL
47,9%
38,3%
27,2%23,1%
18,8%
14,3%
9,3%1,9%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
The Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity in 2006; at the end of this year penetration levels had reached 47.9%.
In only 5 years, Mobile telephony modi� ed its penetration level from 14.3% in 2001 to 47.9% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with an 9.3% penetration.
Internet connections have increased until 2006 closing with a penetration level of 1.9%.
110 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
17. Trinidad & Tobago17.1. Mobile Telephony Contributionto Gross Domestic Product
Figure 17.1.1. Trinidad & Tobago: Supply and Demand Evolutionof Mobile Telephony 2001-2006
Source : Telecommunications Authority of Trinidad & Tobago (TATT) and Convergencia Research estimations.
44
70
91
125
163
203
138
173
106
77
60
38
0
20
40
60
80
100
120
140
160
180
200
220
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
Supply: Accum. ‘01 to ’06
696Demand: Accum. ‘01 to ’06
592
From 2001 to 2006, the Mobile Telephony contributed to national GDP providing approximately US $696 million of goods and services.
With respect to Demand, the Mobile Telephony contributed to GDP purchasing approximately US $592 million of goods and services from 2001 to 2006.
Figure 17.1.2. Trinidad & Tobago: Average Annual Variation Rate of Mobile Telephony and GDP 2001-2006
Source : ECLAC, Central Statistics Office (CSO), TATT and Convergencia Research estimations
28,7%
59,4%
37,9%
30,2%
25,0%
4,2%7,9%
14,4%
8,8% 8,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Supply: Var. ’06 vs. ‘01
360,5%GDP:
Var. ’06 vs. ‘01
62,5%
In the 2001-2006 period, the total increase of Mobile Telephony was 360.5%. In the same period Trinidad & Tobago’s economy, as a whole, registered a growth rate of 62.5%.
Figure 17.1.3. Trinidad & Tobago: Mobile Telephony aspercentage of GDP 2001-2006
Source : ECLAC, CSO, TATT and Convergencia Research estimations.
0,8%0,8%
1,0% 1,1%1,1%
0,5%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
2001 2002 2003 2004 2005 2006
Part
icip
atio
n %
in G
DP
utoThe Mobile Telephony activity as participation percentage regarding nominal GDP was 0.5% in 2001. In 2006, the proportion has been duplicated reaching participation levels of 1.1%.
17.2. Mobile Telephony Contributionto National Investment
Figure 17.2.1. Trinidad & Tobago: Mobile Telephony Investment(CAPEX) Evolution 2001-2006
Source: TATT and Convergencia Research estimations
7
11
14
19
24
30
0
5
10
15
20
25
30
35
2001 2002 2003 2004 2005 2006
Mill
ions
of U
S $
CAPEX : Accum. ‘01 to ’06
104
Mobile telephony operators in Trinidad & Tobago have invested approximately US $104 million in Capital Expenditures (CAPEX) between 2001 and 2006.
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 111
Mobile Telephony Contribution toLatin America and the Caribbean Economies by Country
ntributiioon to
17.3. In� ation vs. Mobile TelephonyARPU Evolution
Figure 17.3.1. Trinidad & Tobago: Average Annual Variation Rate ofCPI and Mobile Telephony ARPU 2001-2006
Source: CSO, TATT and Convergencia Research estimations
-6,3%
0,0%
-12,1%
-19,7%
-12,6%
8,3%6,8%
3,7%3,8%4,2%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Accum. Var. CPI :
+ 20,0%
Accum. Var. Mobile Telephony: - 42,2%
In the period 2001-2006, Trinidad and Tobago’s accumulated in� ation was 20%.
Mobile Telephony has shown a de� ationary evolution regarding its revenues average per user (ARPU). The variation in the period under analysis shows an accumulated decrease of only 42.2%.
17.4. Mobile Telephony Contributionto Employment
Figure 17.4.1. Trinidad & Tobago: Total Employment(Direct + Indirect) generated by Mobile Telephony 2006
Source : Study carried out by Convergencia Research according to data given by Mobile Telephony Companies and its providers
Direct: # 19018,5%
Indirect: # 83681,5%
Total employment generated by Mobile Telephony: 1.026
The Mobile Telephony industry in Trinidad & Tobago employed approximately 1.026 people in 2006.
Approximately 190 people are directly employed by Mobile Telephony operators. While, the industry has indirectly generated 836 additional job positions through the � rst link of its Value Chain.
It can be concluded that for each employee directly employed by Mobile telephony, 4.4 employees are indirectly demanded.
17.5. Mobile Telephony Contributionto Connectivity
Figure 17.5.1. Trinidad & Tobago: Number of Mobile-Fixed Linesand Internet Connections Evolution 2001-2006
Source: TATT and Convergencia Research estimations
530
924
366284
160
1.155
0
200
400
600
800
1.000
1.200
1.400
2001 2002 2003 2004 2005 2006
Thou
sand
s of
Lin
es
Mobile LinesFixed LinesInternet Connections
Mobile telephony: In 2006 Trinidad & Tobago had a total of 1 Million 155 thousand users, while at the end of 2001 only 160 thousand users existed.
Fixed telephony: The � xed lines total was 343 thousand in 2006; while in 2001 the total number raised to 308 thousand lines.
Internet: The total internet connections were 98 thousand in 2006; all Dial-up and Broadband connections are included. An important growth is observed in the period under analysis, since in 2001 35 thousand connections only existed.
Figure 17.5.2. Trinidad & Tobago: Annual Variation Rate of Mobile-Fixed Lines and Internet Connections Number 2001-2006
Source: TATT and Convergencia Research estimations
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
2002 2003 2004 2005 2006
% V
aria
ción
Anu
al
Móviles: Var. '06 vs. '01
144,1%
Internet: Var. '06 vs. '01
35,3%
Fijas: Var. '06 vs. '01 - 1,2%0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
2002 2003 2004 2005 2006
Ann
ual V
aria
tion
%
Mobiles: Var. ’06 vs. ‘01
622,0%
Internet: Var. '06 vs. '01
180,7%Fixed:
’06 vs. ‘01 Var.
11,3%
The growth rate of Mobile Telephony users in the 2001-2006 period has been 622%. Fixed Telephony has also shown a moderated growth of 11.3%. Regarding Internet service has signi� cantly varied registering a growth rate of 180.7%.
112 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Third Part:
Figure 17.5.3. Trinidad & Tobago: Mobile-Fixed Lines andInternet Connections Penetration 2001-2006
Source: ECLAC, TATT and Convergencia Research estimations
87,0%
69,8%
40,2%
27,8%
21,7%12,3% 25,8%
7,4%0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
2001 2002 2003 2004 2005 2006
Pene
trat
ion
%
Mobile LinesFixed Lines
Internet Connections
The Mobile Telephony represented the most important telecommunications service regarding its contribution to National Connectivity; at the end of 2006 it has reached penetration levels of 87%, registering the region’s highest index.
In only 5 years, Mobile telephony modi� ed its penetration level from 12.3% in 2001 to 87% in 2006.
Regarding Fixed Telephony, its contribution to Connectivity remained sFigure during the whole period closing 2006 with a 25.8% penetration.
Internet connections were increased closing 2006 with a 7.4% penetration.
Annexes
114 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Annexes:
Data and Consulting Sources
1. Argentina
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:National Institute of Statistical and Censuses (INDEC) INDEC - Consumer Defence Ministry of Labour, Employment and Social Security (MTEySS) National Commission Communications (CNC) Secretary of Communications (SECOM)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- CTI- Movistar- Personal- Nextel
Interviews:Company ExecutiveAvanzitBGH Sergio Daniel YáñezBrighstar Alejandro CasabiancaCicomra Alfredo BalarinoComercializador CTI Gustavo AlcainEiffel José FernándezEmerson Anabella LombardiEmerson Hugo FernándezEmerson Sonia CastellanosEricsson Cecilia AmuchasteguiGemalto Federico GiannattasioGemplus Mathias BouzereauGuzman-NacichLeadcom Sr. BufacciLeadcom Eduardo MaradeiLG Diego BarberoMachainMotorola Alberto IglesiasMotorola Gustavo WrobelNokia Siemens Alejo ZagalskiNortel Juan Carlos PerelliPersonal Sabrina RomeroPersonal Mario FarinaQualcomm Guillermo FornaresioRelacom Jorge CarusoSamsung Javier OteroTESUR Vicente CardoneOtros Rodrigo LadeiraInmobiliaria Cesar Iraola
2. Brazil
International Organisms:Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Statistics and Geography Brazilian Institue (IBGE) and CEPALNational Telecommunications Agency (ANATEL) Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Amazonia- Brasil Telecom Celular- Claro- Oi- Telemig- TIM- Vivo
Interviews:CompanyANATELAbeprestAberimestAbineeBenQBGH BrasilBrighstarDireknetG&DGemaltoLeadcomSiemensVisa Vivo
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 115
3. Chile
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Central Bank of Chile Telecommunications Sub secretary of Chile (SUBTEL) National Statistics Institute of Chile (INE)National Chamber of Commerce, Services and TourismMinistry of PlanningDirection of LabourEconomic Ministry
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Claro- ENTEL PCS- Movistar
Interviews:Company ExecutiveAgencia Prensa Carlos ZavalaA-Novo Enrique VidalA-Novo Marcela LizanaBanco Central de Chile Antonio EscandónBrightstar Vicente CamusCentennial Cristián Canelo Claro Paul GálvezClaro Marco LópezColegio Ingenieros Pedro Torres OjedaEntel PCS Andrés CristiEntel PCS Claudia BizarroEntel PCS Jimmy FloresEntel PCS Jorge Bascur Entel PCS Patricia AstorgaEntel PCS Francisco OchoaEntel PCS Gustavo NicoliniGSM LA Alexis ArancibiaINE Cristina Silva CarrascoInterexportLeadcom Jennifer AlarcónLeadcom Angelo AbaglianoMotorola Cristin FischerTelecom Eduardo De LucaTelecom Alejandro MartínezTelefónica CTC Miguel Angel CruzTelefónica Móviles Jeannette Luna
4. Colombia
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:National Administrative Department of Statistics (DANE)Superintendence of House Utilities (SSPD),Regulatory Commission for Telecommunications (CRT) Ministry of Communications Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Avantel- Comcel- Movistar- Tigo
Interviews:Company ExecutiveCOPNIA - Consejo Profesional Nacional de Ingenieros
Luz Sofía Aguirre
DANE Estadistica José IglesiasACIEM Asoc. Colombiana
de IngenierosTYCOUT Starcom Fernando CamargoUT Starcom Ing. David BedoyaZTE Carlos MorenoAgencia Prensa Nathaly GarcíaOLA María Valencia RojasTIGO Jairo MuñozTIGO Carlos ArangoComcel Natalia CuellarEricsson Rolando MartínezNokia (region) Claudia HochmanTelefonica Moviles Andrés Gómez HenaoTelefonica Moviles Gerardo GonzálezCMA (Compania Metalicas Asoc.)
Alejandro Coronado
Leadcom Ing. Hernán Zabarain
116 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Annexes:
5. Ecuador
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)International Labour Organization (ILO)
National Organisms:Central Bank of Ecuador (BCE)National Institute of Statistics and Census (INEC) Superintendence of Telecommunications (SUPTEL)National Telecommunications Commission (CONATEL)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Alegro- Movistar- Porta
Interviews: Company ExecutiveCONATELSiemens Juan Carlos MolanoSiemens Marcelo RomoPorta Sara GómezLeadcom Daniel NavasAndinatel Vicente MerchanMovistar Juan FloresAIME Asociación Ingenieros de Minas SIDEN Soc.Ingenieros de Ecuador Helena de Armas
SUPTEL - Superintendencia de Telecomunicaciones
Mario Jardin
Ditelpro Patricio JacomeHTM (servicio técnico terminales) Wilson Avila
Brightstar Oswaldo PonceTelefonica Móviles Juan FloresTelefonica Móviles Julien LereboulletTelefonica Móviles Carlos Meythaler
6. Peru
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Central Reserve Bank of Peru (BCRP) Supervisor Organism of Private Investment in Telecommunications (OSIPTEL) National Institute of Statistics and Informatics (INEI) Statistics and Labour Studies Program (PEEL)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Claro- Movistar- Nextel
Interviews: Company ExecutiveMovistar J.C. StollMovistar Carlos ZamoraLeadcom Julio BonifazTécnicas Metálicas Sr. TorresAmerica Movil Adriana AlbanZTE Alan CupisCIP Colegio Ingenieros Luisa Ulloa ReynaOSIPTEL Marcia PerrigoBrightstar Marjorie GuttiA-Novo Cristián Aguirre
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 117
7. Uruguay
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:National Institute of Statistics (INE) Telecommunications Services Regulatory Unit (URSEC)Secretary of Communications (SECOM) National Direction of Labour (DINATRA - MTSS)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Ancel (Antel)- CTI- Movistar
Interviews:Company ExecutiveAncel Marcelo ErlichAncel Jorge SuárezAncel Rosana BetbederAncel Jose Carlos LópezAncel Marcelo EviaMovistar Virginia SosaMovistar Daniel de LisanteMovistar Diego RoelDistribuidor Movistar Oscar FerrasPranasys Rafael García Karma Sigueto KubotoBrightstar Juan PoseTeyma Pablo MorelliUltima Milla Arnaldo Castro
8. Venezuela
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Central Bank of Venezuela (BCV) National Telecommunications Commission (CONATEL)National Institute of Statistics (INE)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Digitel- Infonet- Movilnet- Movistar
Interviews: Company ExecutiveBrightstar Ricardo De Sousa Colegio de Ingenieros Arq. María QuinteroDigitel RegulatoriaDigitel Luis HerreroINE José LusardoMovistar Ing.José de BritoMovistar Lic.Gabriela KeborMovistar Angel BentancourtMovistar Johann DurreNokia Humberto SalinasRelacom Milangelo Galea
118 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Annexes:
9. Costa Rica
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Central Bank of Costa Rica (BCCR) National Institute of Statistics and Census (INEC) Regulatory Authority for the Public Services (ARESEP)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- ICE Telecommunications
Interviews: Company ExecutiveAutoridad Reguladora de los Servicios Públicos
Carlos Matos
Banco Central de Costa Rica
Ana Georgina Azofeifa
Banco Central de Costa Rica
Manfred Vízquez Alcázar
Colegio Federado de Ingenieros y Arquitectos
Jeffrey Zúñiga Arias
Colegio Federado de Ingenieros y Arquitectos
Ingeniera Silvia Ruiz
D-Link Erick MurilloD-Link Rubén MuñozEricsson Luis ObandoGrupo Akar Aron CadenasICE Gabriela VarelaICE Fernando MurilloICE Manuel Córdoba Morales
ICEMarco Vinicio Fernández Montalto
INEC Gabriela SalasRACSA René MedinaRACSA Mario José Zaragoza BorraséSiemens Norberto IzurietaSTG Viviana LutmerZyxel Estela M. Goldberg
10. El Salvador International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Central Reserve Bank of El Salvador (BCR) The General Superintendence of Electricity and Telecommunications (SIGET) General Direction for Census and Statistics (DIGESTYC) Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Claro- Digicel- Movistar- Telemovil
Interviews: Company ExecutiveFESIARA (Federación Salvadoreña de Ingenieros, Arquitectos y Ramas Afines)
Nancy Tecortes
Autoconsa Fernando ResinosBanco Central de Reserva de El Salvador Benjamín Garay
Banco Central de Reserva de El Salvador Selso Coto
Banco Cuscatlan Marisela AlvarengaClaro - Telecom Jaime CastroClaro - Telecom Sergio Vázquez Claro - Telecom Javier OlivaClaro - Telecom Eric Benet Claro - Telecom Alberto DavidsonClaro - Telecom Silvia RodríguezClaro - Telecom Elsa de ZaraviaClaro - Telecom Rodrigo LópezDigicel Sonia VillaltaDigicel Luis La RoccaDirección General de Estadística y Censos Luis Paz
Ericsson Eduardo Santos FESIARA Sr.Cardoza BenítezIntelfon Paola RodríguezSIGET Noel MaldonadoTelecom El Salvador Mónica RicardezTelefónica Mercedes BeunzaTelefónica Xenia ZepedaTelemovil Ramiro AvendañoTelemóvil Mario Méndez
Carmen Argueta
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 119
11. Guatemala
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Guatemala Bank (BANGUAT) Guatemala’s National Institute of Statistics (INE) Guatemala’s Superintendence of Telecommunications (SIT)Guatemala’s Social Security Institute (IGSS)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Claro- Movistar- Tigo
Interviews: Company ExecutiveBANGUAT Luis EcheverryBANGUAT Ismael Valenzuela BANGUAT Mario Alfredo SalgueroBrightstar Marta NoriegaClaro Enio GuzmánClaro Ing. Marvin ParClaro Alejandro SalgueroComcel Marco ChávezGrupo Mena Roaldo VázquezSIT Rodrigo RoblesTelefonica Móviles Jorge EstevezTelefonica Móviles Flor de María MencosTelgua Caludia MassisTelgua Litza EscobarTelgua Regina Leal Tigo Marlin OlivaTigo Osmar Coronel
12. Panama
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Ministry of Economy and Finance (MEF) Panama Authority National Authority of Public Services (ANSEP) Panamanian Association of Company Executives
Mobile Telephony Companies: Balances and Reports (annual and quarterly published))Cable & Wireless PanamáMovistar
Interviews: Company ExecutiveANSEP Edmundo EduardoC&W Panamá Roberto MendozaC&W Panamá Indira DoyenC&W Panamá Carlos Ungo C&W Panamá Abdiel Antonio GutiérrezC&W Panamá Carlos FerrerLeadcom Eric de SedasLG Dennis Teresa LópezLG AbdielLG Electronics Panama Julio FabregaLG Electronics Panama Dennis Teresa LópezSociedad Panameña de Ingenieros y Arquitectos
Martín Isa
Starcom Isabel Ruilobo
120 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Annexes:
13. Mexico
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:The National Institute of Statistics, Geography and Informatics (INEGI) Bank of Mexico (Banxico) Federal Commission of Telecommunications (COFETEL)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Iusacell- Movistar- Nextel- Telcel (América Móvil)- Unefon
Interviews: Company ExecutiveAlcatel Lucent Gerardo García Alcatel Lucent Ing.Alejandro MartínezBrightstar Braulio HernándezColegio de Ingenieros Dra. Cecilia Martín Del CampoDireccion General de Profesiones
Eberardo Beltrán Corona
Gemalto Mauricio MalpicaGemalto Natalia Da SilvaGemalto Benjamin Binet Iusacell Carlos HirschLeadcom Juan Carlos CalvaMotorola Lic.Alonso AlonsoMovistar Omar CalvoMovistar Susana TorresMovistar Victor Manuel PrietoMovistar Mariana García MenaMovistar Veronica Gómez FerroTelcel Francisco Marin GaribaldiTelcel Jorge GonzálezTelcel Ing. Ricardo Medina
14. JamaicaInternational Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)International Telecommunications Union (ITU)
National Organisms:Bank of Jamaica (BOJ) Statistical Institute of Jamaica (STATINJA)Of� ce of Utilities Regulation (OUR)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Cable & Wireless Jamaica- Digicel- Oceanic
15. Puerto RicoInternational Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Puerto Rico’s Planning Board, Program of Economic and Social Planning (JPPPES)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Centenal- Cingular- Movistar- Sprint- Suncom Wireless- Verizon (PRTC)
Interviews:Company ExecutiveBrightstar Julio VegaCentennial Alexis HernándezCentennial Miguel Garcia Rechani Cingular Jennifer BowcockCingular Clay OwenCingular Mark SiegelCingular Belinda BurgosColegio Ingenieros Ing. HernándezCrown Castle Ruth RodríguezMovistar Wandy BorreroMovistar Miguel PérezPuerto Rico Telephone Ing.Manuel HernándezPuerto Rico Telephone Ing. Ivelis QuiñonezPuerto Rico Telephone Gustavo CañasPuerto Rico Telephone Jorge SamalotPuerto Rico Telephone Edwin AvilaSprint Nanci SchwartzSuncom Rose B. Cummings
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 121
16. Dominican Republic
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)
National Organisms:Dominican Republic’s Central Bank (BCRD) Dominican Institute of Telecommunications (INDOTEL)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- Centenal- Claro (ex Verizon)- Orange- Tricom
Interviews: Company ExecutiveCentennial Guillermo PeñaCentennial Mite NishioCentennial Tomas HernándezCentennial Richard DelgadoCentennial Eduardo MártinezVerizon Antonio MusaCODETEL Martín Montas Domenech
Colegio de IngenierosIng.Adolfo Cedeño de las Rosas
Brightstar Humberto De JesúsSabre Manuel De La RochaClaro Isabel MorilloClaro Rubén GuzmánClaro Bartolomé Soriano
17. Trinidad & Tobago
International Organisms: Economic Commission for Latin America and the Caribbean (ECLAC)International Monetary Fund (IMF)
National Organisms:Telecommunications Authority of Trinindad & Tobago (TATT) Central Statistical Of� ce (CSO)
Mobile Telephony Companies: Balances and Reports (annual and quarterly published)- TSTT
18. Regional
Interviews: Company Executive3Com Román BaudritAlcatel Johnny VegaD-Link Jorge GuillénEricsson Gilberto MataEricsson Alexander TellezLeadcom Juan Manuel GómezLeadcom Yamile FrancoMotorola Juan Carlos PerdomoNokia Manuel González ArceNokia Jorge AguileraNortel José PortoNortel Pierre BissonetteNortel Fabiana CoeloNortel Ivan GoridcoPalm Zorena AlbarranPalm Erika García VenegasPanasonic Latin America Karen A. Turner M.Siemens Eric NuñezSiemens Centroamérica Erwin EllerSiemens Centroamérica Otto ZúñigaSony Ericsson Centroamérica
Judith Fraguela
122 � GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies
Annexes:
II. Working Group
Mariana Rodriguez ZaniGeneral Director of ConvergencialatinaProject Coordinator• Bachelor of Communication (ULZ – Argentina) and MBA
(UTDT – Argentina and St. Gallen – Suiza).• Founding member of Grupo Convergencia. She was
responsible of product development.• Since 2000 she manages Convergencialatina and since 2003
she participates of the area research development.
Susana LandeiraResponsible of Project Research• Bachelor of Social Communication (UNQ - Argentina).• She has carried out researches on journalism means, graphic,
radio and television means.
Gustavo JorgeProject Director • Public Accountant (UBA - Argentina), He holds an MBA
(UTDT - Argentina and WHU - Germany).• He worked in leading banks of Argentina (BST, Bansud,
Quilmes), in commercial areas (Special Projects & Structuring) and staff (Strategic Planning & Management Control)
• He has carried out Consulting and Reaseach for Convergencia Research (Argentina), ING (Uruguay) and Cemex (Germany).
GSM Latin America Mobile Telephony Contribution to Latin America and The Caribbean Economies � 123