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
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.
Pay TV
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.