The Andes mountain system extends for more than 8,900km along the entire length of western South America, from the Caribbean coast in the north to Tierra del Fuego in the south. The Andes form a natural wall separating the narrow western coastal region from the rest of the continent. This territory and it resources are shared by five countries: Bolivia, Chile, Colombia, Ecuador, and Peru.

Bolivia One of the poorest and least developed Latin American nations, Bolivia has the second lowest fixed line teledensity (7%) in South America after Paraguay. Ethnic conflicts, socio-economic problems, and natural disasters all played their part in holding back fixed-line growth – but not mobile, which has grown steadily even during the recession years. Mobile subscribers have outnumbered fixed lines in service since 2000. In early 2006, there were almost four mobile phones for every fixed line in service. Even so, mobile penetration (26%) is still well below the regional average. The incumbent telecom operator, Entel, is the market leader in long distance telephony and, through its subsidiary Entel Movil, it is also the mobile market leader. Entel’s owner, Telecom Italia, has been in talks with a number of parties interested in acquiring its Bolivian operations.

Chile Thanks to a healthy economy and early market liberalization, Chile’s telecom market is one of the most dynamic and promising in Latin America. In fact, Chile has one of the least-regulated telecom markets in the region, with full competition allowed in all areas. It boasts a modern fixed-line network, fully digitised since 1993 – and yet, mostly due to the move towards mobile solutions, the fixed-line sector remains flat. The long-distance sector, however, is one of the most competitive in Latin America, despite ongoing consolidation. As for the Internet and broadband market, Chile has the highest rates of penetration in Latin America (apart from a few Caribbean islands). Chile is also the regional leader in terms of convergence, and VTR GlobalCom was the first operator in Latin America to develop the triple play strategy, combining video, voice, and data over one broadband platform. WiMAX is being deployed by several operators, and a couple of companies are in the process of testing IPTV. In terms of mobile telephony, Chile has one of the highest penetration rates in Latin America: around 65% in early 2006. Mobile subscribers outnumber fixed-line connections by more than three to one.

Colombia The year 2005 proved to be a period of transition for the Colombian telecom market, with intensifying competition, continued fixed-to-mobile substitution, and increasing convergence. The signing of the Free Trade Agreement (FTA) between Colombia and the USA in February 2006 had an important impact on Colombia’s telecom sector, promoting market liberalisation and privatisation. In April 2006, after years of thwarted privatisation efforts, the government finally sold a controlling stake in Colombia Telecom to Spain’s Telefónica. In early 2006, teledensity in Colombia was 17%, about average for Latin America. Like in other parts of the region, the fixed-line sector is stagnating. But the mobile market is one of the country’s most dynamic businesses. Mobile subscribers soared by 110% in 2005, and mobile penetration grew by 24% year-on-year to reach 48%. While broadband penetration is low compared with other Latin American countries, convergence strategies took the country by storm in 2005. Triple play first appeared in Colombia in 2004. By early 2006, another four companies had adopted the triple play strategy, with a further three in the pipeline. WiMax and WiFi have also been welcomed enthusiastically by Colombians.

Ecuador Ecuador’s telecom indicators lag considerably behind those of other Latin American countries, with significant unsatisfied demand. Competition is slow to develop in the fixed-line market, hampered by the dominance of state-owned Andinatel and Pacifictel. Repeated privatisation attempts have failed, and the regulator is looking for a foreign company to take over the management of both operators. Fixed-line teledensity is one of the lowest in South America. The mobile telephony market, on the other hand, is by far the most dynamic telecom sector in Ecuador. By early 2006, there were about four mobile phones for every fixed line in service. Internet user penetration in Ecuador is the third lowest in South America after Bolivia and Paraguay. Internet uptake is hampered by the lack of telecom infrastructure and low PC penetration. On the other hand, there is a boom in cybercafés, as they also offer VoIP telephony. Broadband is freely available, though mostly limited to the corporate market.

Peru Although the telecom market was liberalised in 1998, it is still heavily dominated by Telefónica del Perú (TdP), which has a near monopoly in basic telephony and broadband, and also holds the lion’s share of the mobile sector. Competition in the long-distance sector, on the other hand, is strong, helped along by a multicarrier system. At just over 8%, Peruvian fixed-line teledensity is among the lowest in Latin America. This can be blamed on high interconnection rates, low GDP per capita, fixed-to-mobile substitution, TdP’s hegemony, and geographical inaccessibility. Internet user penetration, on the other hand, is slightly above average for the region. Public Internet booths, called cabinas públicas, can be found on street corners in virtually every city and even small towns, providing Internet access and VoIP telephony to more than 80% of the population. Broadband is a virtual monopoly of TdP, although a new window of opportunity has opened for other operators to provide alternative broadband access using WiMAX technology. The first WiMAX services were launched in late 2005. Mobile penetration in Peru is far lower than the Latin American average, mostly due to high interconnection charges. From 2005, however, charges are gradually being reduced. With mobile prices dropping, the Peruvian mobile market could be on the verge of a veritable boom.

1. BOLIVIA
1.1 Key statistics
1.2 Telecommunications market
1.2.1 Overview of Bolivia’s telecom market
1.3 Regulatory environment
1.3.1 Background
1.3.2 Regulatory authority
1.3.3 Privatisation of Entel
1.3.4 Telecom sector liberalisation in Bolivia
1.3.5 Foreign investment
1.4 Fixed network operators in Bolivia
1.4.1 Overview of operators
1.4.2 Entel
1.4.3 Cooperatives
1.4.4 BoliviaTel
1.5 Telecommunications infrastructure
1.5.1 National telecom network
1.5.2 International infrastructure
1.5.3 Infrastructure developments
1.6 Internet market
1.6.1 Overview
1.7 Broadband market
1.7.1 Overview
1.8 Convergence
1.8.1 Overview of media convergence
1.8.2 Pay TV
1.9 Mobile communications
1.9.1 Overview of Bolivia’s mobile market
1.9.2 Mobile technologies
1.9.3 Major mobile operators
1.9.4 Mobile voice services
1.9.5 Mobile data services
2. CHILE
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Chile’s telecom market
2.3 Regulatory environment
2.3.1 Background
2.3.2 Regulatory authorities
2.3.3 Privatisation
2.3.4 Telecom sector liberalisation in Chile
2.3.5 Telecommunication tariffs
2.3.6 Access
2.3.7 Interconnect
2.4 Fixed network operators in Chile
2.4.1 Overview of operators
2.4.2 Telefónica CTC Chile
2.4.3 Entel Chile
2.4.4 VTR GlobalCom
2.4.5 Telefónica del Sur (Telsur)
2.4.6 Telmex
2.4.7 GTD Manquehue
2.5 Telecommunications infrastructure
2.5.1 National telecom network
2.5.2 International infrastructure
2.5.3 Infrastructure developments
2.6 Internet market
2.6.1 Overview of the Internet in Chile
2.7 Broadband market
2.7.1 Market overview
2.7.2 Broadband operators
2.7.3 Cable modems
2.7.4 Asymmetric Digital Subscriber Line (ADSL)
2.7.5 Wireless broadband
2.7.6 Broadband Powerline (BPL)
2.8 Convergence
2.8.1 Overview of media convergence
2.8.2 Triple play models
2.8.3 Pay TV
2.8.4 Broadband TV (IPTV)
2.8.5 Digital Terrestrial TV
2.9 Mobile communications
2.9.1 Overview of Chile’s mobile market
2.9.2 Regulatory issues
2.9.3 Mobile technologies
2.9.4 Mobile operators
2.9.5 Entel PCS
2.9.6 Smartcom
2.9.7 Mobile voice services
2.9.8 Mobile data services
2.9.9 Mobile content and applications
3. COLOMBIA
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of Colombia’s telecom market
3.2.2 Market analysis – 2005 - 2006
3.3 Regulatory environment
3.3.1 Regulatory authorities
3.3.2 Privatisation
3.3.3 Telecom sector liberalisation in Colombia
3.3.4 Interconnect
3.3.5 Rural telephony
3.3.6 Compartel
3.3.7 Free-Trade Agreement (FTA)
3.4 Fixed network operators in Colombia
3.4.1 Overview of operators
3.4.2 Colombia Telecom
3.4.3 ETB
3.4.4 EPM
3.4.5 Emcali
3.4.6 Telmex Colombia
3.4.7 Barranquilla Telecomunicaciones (Batelsa)
3.5 Telecommunications infrastructure
3.5.1 National telecom network
3.5.2 International infrastructure
3.5.3 Infrastructure developments
3.6 Internet market
3.6.1 Overview
3.7 Broadband market
3.7.1 Overview
3.7.2 Cable modems
3.7.3 x-Digital Subscriber Line (xDSL)
3.7.4 Wireless broadband
3.8 Convergence
3.8.1 Overview of media convergence
3.8.2 Triple play models
3.8.3 Pay TV
3.9 Mobile communications
3.9.1 Overview of Colombia’s mobile market
3.9.2 Regulatory issues
3.9.3 Mobile technologies
3.9.4 Major mobile operators
3.9.5 Mobile voice services
3.9.6 Mobile data services
4. ECUADOR
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview of Ecuador’s telecom market
4.3 Regulatory environment
4.3.1 Background
4.3.2 Regulatory authorities
4.3.3 Privatisation
4.3.4 Telecom sector liberalisation in Ecuador
4.3.5 Interconnect
4.4 Fixed network operators in Ecuador
4.4.1 Overview of operators
4.4.2 Andinatel
4.4.3 Pacifictel
4.4.4 Etapa
4.4.5 Linkotel
4.5 Telecommunications infrastructure
4.5.1 National telecom network
4.5.2 International infrastructure
4.5.3 Infrastructure developments
4.6 Internet market
4.6.1 Overview
4.7 Broadband market
4.7.1 Overview
4.8 Convergence
4.8.1 Pay TV
4.8.2 Cable TV
4.8.3 Satellite TV
4.9 Mobile communications
4.9.1 Overview of Ecuador’s mobile market
4.9.2 Mobile technologies
4.9.3 Major mobile operators
5. PERU
5.1 Key statistics
5.2 Telecommunications market
5.2.1 Overview of Peru’s telecom market
5.2.2 Market analysis – 2006
5.3 Regulatory environment
5.3.1 History
5.3.2 Regulatory authority
5.3.3 Privatisation of Telefónica del Perú
5.3.4 Telecom sector liberalisation in Peru
5.3.5 Changes to telecom laws and regulations – 2003-2004
5.3.6 Multicarrier dialling system
5.3.7 Interconnect
5.3.8 Fixed-to-Mobile termination charges
5.3.9 Interoperability
5.3.10 Number portability
5.3.11 Settlement rates
5.3.12 Callback services
5.3.13 Price cap regulations
5.4 Fixed network operators in Peru
5.4.1 Overview of operators
5.4.2 Telefónica del Perú (TdP)
5.4.3 Movistar Perú (was Comunicaciones Móviles del Perú/BellSouth)
5.4.4 Telmex Perú
5.4.5 IDT Perú
5.4.6 Americatel Perú
5.4.7 Gilat To Home Perú
5.5 Telecommunications infrastructure
5.5.1 National telecom network
5.5.2 International infrastructure
5.5.3 Infrastructure developments
5.6 Internet market
5.6.1 Overview
5.7 Broadband market
5.7.1 Market overview
5.7.2 Cable modems
5.7.3 ADSL
5.7.4 Wireless broadband
5.7.5 Powerline broadband
5.8 Convergence
5.8.1 Overview of media convergence
5.8.2 Cable TV
5.8.3 MMDS
5.8.4 Satellite TV
5.9 Mobile communications
5.9.1 Overview of Peru’s mobile market
5.9.2 Regulatory issues
5.9.3 Mobile technologies
5.9.4 Major mobile operators
5.9.5 Mobile voice services in Peru
5.9.6 Mobile data services
6. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Local telephone cooperatives
Exhibit 2 – Major submarine cable networks landing in Bolivia
Exhibit 3 – Tariff regulations on telecommunication services
Exhibit 4 – Regions and primary zones
Exhibit 5 – Local telephony operators – June 2005
Exhibit 6 – Long-distance telephony operators and access code – June 2005
Exhibit 7 – Telefónica CTC Chile at a glance
Exhibit 8 – Entel Chile at a glance
Exhibit 9 – VTR GlobalCom at a glance
Exhibit 10 – Telsur at a glance
Exhibit 11 – Major submarine cable networks landing in Chile
Exhibit 12 – Metrópolis (historical)
Exhibit 13 – Mobile concessions and original shareholders
Exhibit 14 – Telefónica Móvil de Chile (TEM Chile) – history
Exhibit 15 – BellSouth Chile – history
Exhibit 16 – Colombia Telecom – company history
Exhibit 17 – EPM – major telecom subsidiaries
Exhibit 18 – Major submarine cable networks landing in Colombia
Exhibit 19 – WLL infrastructure
Exhibit 20 – Major ISPs and broadband players – 2005
Exhibit 21 – Colombian regions for mobile licensing
Exhibit 22 – Comcel – company history
Exhibit 23 – TEM Colombia – company history
Exhibit 24 – Major submarine cable networks landing in Ecuador
Exhibit 25 – Telefónica del Perú at a glance
Exhibit 26 – Telmex Perú – company history
Exhibit 27 – FITEL Rural Projects Program
Exhibit 28 – Major submarine cable networks landing in Peru
Exhibit 29 – History of the Internet in Peru
Exhibit 30 – Telefónica Móviles Perú (TEM Perú) – history
Exhibit 31 – Comunicaciones Móviles del Perú (CMP)/BellSouth Peru – history
Exhibit 32 – TIM Perú – history




Table 1 – Country statistics Bolivia – 2005
Table 2 – Telephone network statistics – 2005
Table 3 – Internet provider statistics – 2005
Table 4 – Internet user statistics – 2005
Table 5 – Mobile statistics – September 2004
Table 6 – National telecommunications authorities
Table 7 – Fixed-line to mobile ratio – 1995 - 2005
Table 8 – Fixed lines in service, annual change and teledensity – 1995 - 2005
Table 9 – Public payphones in service and annual change - 1998 - 2005
Table 10 – Internet users, annual change and user penetration - 1997 - 2005
Table 11 – Internet subscribers, annual change and subscriber penetration – 1997 - 2005
Table 12 – Internet host computers and annual change - 1996 - 2004
Table 13 – Cable TV subscribers, annual change and household penetration – 2000 - 2005
Table 14 – Mobile subscribers by operator and annual change - September 2005
Table 15 – Mobile subscribers, annual change and penetration - 1995 - 2005
Table 16 – Mobile operators’ market share - 2003 - 2005
Table 17 – Country statistics Chile – 2005
Table 18 – Telephone network statistics – 2005
Table 19 – Internet provider statistics – 2004
Table 20 – Internet user statistics – 2005
Table 21 – Broadband statistics – 2005
Table 22 – Mobile statistics – 2005
Table 23 – National telecommunications authorities
Table 24 – Entel and CTC – market share of ILD and DLD traffic– 2001 - 2005
Table 25 – CTC lines in service and annual change – 1999 - 2005
Table 26 – VTR – telephony subscribers and annual change – 2000 - 2005
Table 27 – Telsur lines in service and annual change – 1999 - 2005
Table 28 – Fixed lines in service, annual change and teledensity – 1995 - 2005
Table 29 – Internet users, annual change and user penetration - 1996 - 2005
Table 30 – Dial-up Internet subscribers and annual change – 2000 - 2005
Table 31 – Internet host computers and annual change - 1994 - 2004
Table 32 – Broadband subscribers, annual change and penetration - 2000 - 2005
Table 33 – Broadband subscriber ratios by technology – 2001 - 2005
Table 34 – Broadband subscribers – major companies – 2001 - 2005
Table 35 – Cable modem subscribers and annual change – 2001 - 2005
Table 36 – VTR – cable modem subscribers and annual change – 2000 - 2005
Table 37 – ADSL subscribers and annual change – 2001 - 2005
Table 38 – CTC – ADSL subscribers and annual change – 2000 - 2005
Table 39 – Entel – ADSL subscribers and annual change – 2002 - 2005
Table 40 – Telsur – ADSL subscribers and annual change – 2000 - 2005
Table 41 – Entel – WLL subscribers and annual change – 2002 - 2005
Table 42 – Cable TV subscribers and annual change – 1994 - 2005
Table 43 – VTR – cable TV subscribers and annual change – 2000 - 2005
Table 44 – Mobile subscribers by operator and annual change – September 2005
Table 45 – Mobile subscribers; penetration and annual change – 1995 - 2005
Table 46 – Operator market share – 1999 - 2005
Table 47 – Movistar – mobile subscribers and annual change – 1998 - 2005
Table 48 – BellSouth Chile – mobile subscribers and annual change - 1999 – 2004 (historical)
Table 49 – Entel PCS – mobile subscribers and annual change – 1999 - 2005
Table 50 – Smartcom – mobile subscribers and annual change – 1999 - 2005
Table 51 – Prepaid/postpaid ratio – 1999 - 2005
Table 52 – Country statistics Colombia – 2005
Table 53 – Telephone network statistics – 2005
Table 54 – Internet provider statistics – 2005
Table 55 – Internet user statistics – June 2005
Table 56 – Broadband statistics – June 2005
Table 57 – Mobile statistics – 2005
Table 58 – Telecommunications organisations
Table 59 – Telecommunications revenue and annual change – 2000 - 2005
Table 60 – Telecom revenue by segment and annual change – 2005 (1st half)
Table 61 – Major operators – lines in service – 2000 - 2005
Table 62 – DLD traffic – market share by operator – 1999 - 2005
Table 63 – ILD traffic – market share by operator – 1999 - 2005
Table 64 – Fixed lines in service, annual change and teledensity – 1996 - 2005
Table 65 – Internet users, annual change and user penetration - 1996 - 2005
Table 66 – Dial-up and broadband subscribers – 2002 - 2005
Table 67 – Internet user distribution by technology – 2002 - 2005
Table 68 – Internet host computers and annual change – 1996 - 2004
Table 69 – Broadband subscribers by technology and annual change – 2000; 2002 - 2005
Table 70 – Pay TV subscribers and annual change – 2002 - 2005
Table 71 – Major cable TV providers – subscribers and market share – 2005
Table 72 – Mobile subscribers by operator and annual change - September 2005
Table 73 – Mobile subscribers and penetration and annual change – 1997 - 2005
Table 74 – Mobile market share by operator – 2002 - 2005
Table 75 – Comcel – subscribers and annual change – 2000 - 2005
Table 76 – Movistar – subscribers and annual change – 2001 - 2005
Table 77 – Colombia Móvil – subscribers and annual change – 2003 - 2005
Table 78 – Country statistics Ecuador – 2005
Table 79 – Telephone network statistics – 2005
Table 80 – Internet provider statistics – 2005
Table 81 – Internet user statistics – 2005
Table 82 – Broadband statistics – 2005
Table 83 – Mobile statistics – February 2006
Table 84 – National telecommunications authorities
Table 85 – Market share of mainlines in service by operator – 2001 - 2005
Table 86 – Andinatel – lines in service, annual change and digitisation – 2001 - 2005
Table 87 – Pacifictel – lines in service, annual change and digitisation – 2001 - 2005
Table 88 – Etapa – lines in service, annual change and digitisation – 2001 - 2005
Table 89 – Linkotel – lines in service, annual change and digitisation – 2004 - 2005
Table 90 – Fixed lines in service, annual change, teledensity and digitisation - 1996 - 2005
Table 91 – Public telephones by operator – 2001 - 2005
Table 92 – Internet users, annual change and user penetration - 1998 - 2005
Table 93 – Internet subscribers (dial-up and broadband) and annual change – 1998 - 2005
Table 94 – Internet host computers and annual change - 1996 - 2004
Table 95 – Pay TV subscribers by technology and annual change – 2004 - 2005
Table 96 – Mobile subscribers by operator, technology and annual growth - February 2006
Table 97 – Mobile subscribers, annual change and penetration - 1996 - 2006
Table 98 – Mobile operators’ market share – 1996 - 2006
Table 99 – Prepaid subscriber ratio by operator – 2002 - 2006
Table 100 – Conecel – mobile subscribers and annual change – 1996 - 2006
Table 101 – Otecel – mobile subscribers and annual change – 1996 - 2006
Table 102 – Alegro – mobile subscribers and annual change – 2003 - 2006
Table 103 – Country statistics Peru – 2005
Table 104 – Telecom revenue and investment statistics – 2004
Table 105 – Telephone network statistics – 2005
Table 106 – Internet provider statistics – 2005
Table 107 – Internet user statistics – 2005
Table 108 – Broadband statistics – 2005
Table 109 – Mobile statistics – 2005
Table 110 – National telecommunications authorities
Table 111 – Operators’ fixed lines in service – 2001 - 2005
Table 112 – Operators’ fixed-line market share – 2001 - 2005
Table 113 – Share of domestic long distance traffic (top five operators) – 2002 - 2005
Table 114 – Share of international long distance traffic (top five operators) – 2002 - 2005
Table 115 – Number of licensed operators per service – December 2004
Table 116 – Fixed lines overview, annual change and teledensity - 1995 - 2005
Table 117 – Public telephones and annual change – 1997 - 2005
Table 118 – Internet users, annual change and user penetration - 1996 - 2005
Table 119 – Internet subscribers by access - 2001 - 2004
Table 120 – Internet host computers and annual change - 1996 - 2004
Table 121 – TdP broadband subscribers and annual change – 2001 - 2005
Table 122 – Cable modem subscribers by operator and annual change– 2001 - 2004
Table 123 – ADSL subscribers and annual change – 2001 - 2005
Table 124 – Cable TV subscribers in Peru and annual change – 1999 - 2005
Table 125 – Cable Mágico subscribers and annual change – 1999 - 2005
Table 126 – Cable Star subscribers, homes passed and annual change – 2001 - 2005
Table 127 – Mobile subscribers by operator and annual change - 2005
Table 128 – Mobile subscribers, annual change and penetration - 1994 - 2005
Table 129 – Company market share – 1994 - 2005
Table 130 – Prepaid subscribers by company – 2001 - 2005
Table 131 – Contract subscribers by company – 2001 - 2005
Table 132 – Movistar Perú – prepaid/postpaid mobile subscribers and annual change - 2001 - 2005
Table 133 – TEM Perú – prepaid/postpaid mobile subscribers and annual change - 2001 – 2005 (historical)
Table 134 – CMP/BellSouth – prepaid/postpaid mobile subscribers and annual change - 2001 – 2005 (Historical)
Table 135 – Claro - prepaid/postpaid mobile subscribers and annual change - 2001 - 2005
Table 136 – Nextel prepaid/postpaid mobile subscribers and annual change - 2001 - 2005