Research: The Dominican Republic’s telecommunication market to reach usd2.8 bn in 2013
The Dominican Republic’s telecommunication market is the largest in the Caribbean. According to Pyramid Research, it is expected to generate service revenue of US$2.8bn in 2013.
Daniel Ramos, Senior Consultant of Pyramid Research said they expect "revenue should expand at an annual average rate of about 4% over the next five years to reach $3.4bn primarily because of strong growth in the mobile, fixed broadband and pay-TV segments."
Mobile communications will account for an estimated 65% of the country’s telecom revenue in 2013 and will generate $2.2bn in 2018, according to the same Pyramid study.
"We expect the segment to grow at a CAGR of 7.9% between 2013 and 2018. The mobile market, which will reach a 100% subscription penetration rate in 2015, is already dominated by 3G. Pyramid Research expects that by 2018, 3G will account for 53% of all subscriptions, but 4G subscriptions will ramp up in 2014 and will grow at a CAGR of 165% from 2013 to 2018.", adds Ramos.
Claro and Orange dominate the mobile market. Second-place Orange Dominicana had 35% of all mobile subscriptions at year-end 2012, and now the company has put its Dominicana´s bussiness for sale.
Source: Pyramid Research
Fixed Broadband Market
Pyramid expects the segment to grow at a CAGR of 9.7% between 2013 and 2018. "Although it will account for only an estimated 10% of the Dominican Republic’s telecommunication market in 2013, it is nevertheless expected to generate $459m in 2018.", says Ramos.
According to the firm, the pay-TV market has increased a 5% increase in July 2013 (compared with the same month last year). The number of pay-TV subscribers reached 446,368 in July 2013.