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January 28, 2019updated 30 Jan 2019 2:32pm

Boomtime for Guatemalan smartphone market

By GlobalData Technology

Guatemalan mobile market will see solid mobile revenue growth through to 2023 on the back of postpaid and machine-to-machine uptake.

Mobile subscription penetration of population is anticipated to reach an estimated 116.7% by year-end 2018, higher than the regional average of 113.4%, according to a business intelligence report by GlobalData.

Guatemala mobile uptake

The penetration will grow further to reach 123.3% by 2023-end, mainly driven by strong growth in postpaid handset subscriptions and rising machine-to-machine adoption, according to the analysis of the central American nation’s telecommunications markets, service providers and key opportunities.

Total mobile service revenues generated an estimated $2.1 billion in 2018 and will reach $2.9 billion by 2023-end, growing at a compound annual growth rate of 6.2% over the period 2018-2023, according to the 41-page report by the data and analytics company.

The growth will be driven by a rise in the consumption of mobile data services led by 4G LTE and LTE-A networks expansions by telecom operators. Although new customers will be added, this will be counterbalanced by the deduction of inactive prepaid accounts.

Average revenue per user (ARPU) will increase from an estimated $9.35 in 2018 to $10.46 by 2023-end, mainly driven by a significant increase in postpaid mobile subscriptions and sustained roaming rates.

While prepaid ARPU will increase from $8.01 in 2018 to $8.18 by 2023, postpaid ARPU will grow from $23.06 in 2018 to $25.53 by 2023. An improving postpaid base, as well as the introduction of M2M solutions, will support an increase in ARPU, the authors of the report found.