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October 22, 2019updated 23 Oct 2019 11:02am

Venezuela’s rural broadband expansion will drive fixed subscription growth

By GlobalData Technology

The number of fixed broadband lines in Venezuela will grow from 2.9m in 2019 to 3.3m by 2024 supported by subscription growth in cable, xDSL and fibre segments driven mainly by national broadband initiatives.

DSL will account for 79.4% of total fixed broadband lines in 2019 and will continue to dominate the market through 2024. Cable’s share will increase from 15% in 2019 to 15.9% by 2024, while fibre lines will grow the fastest, cornering a 7.8% share by 2024.

In June 2019, the regulator launched the 8th National Network Transport Project (Proyecto de la Red Nacional de Transporte), aimed at providing fibre-optic connectivity to more than 15 million rural citizens. As a part of the project, 5,500km of fibre infrastructure will be rolled out with nodes to connect around 203 rural municipalities mainly in the southern, as well as the western part of the country and the Andean region.

Fixed broadband service revenue will grow during 2019-2024 in local currency terms. However, in terms of US$ broadband service revenues will witness a drop, at a combined annual growth rate of 3.2%, over 2019-2024 due to rapid devaluation of the Venezuelan bolivar as a result of the hyperinflation engulfing the nation.

Fixed services market: penetration and subscription trends

Source: GlobalData Fixed Communications Forecast

Related Report: Fixed Broadband Market Trends and Opportunities in Latin America – 2019