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Domestic Market Analysis of the Telecommunications and Broadcasting Sectors

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Domestic Market Analysis of the Telecommunications and Broadcasting Sectors Telecommunications Authority of Trinidad and Tobago Domestic Market Analysis of the Telecommunications and Broadcasting Sectors January - March 2006 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 The Telecommunications Authority of Trinidad and Tobago, TATT BEN Court 76 Boundary Road San Juan Trinidad and Toabgo Tel: 1-868-675-8288 Fax: 1-868-674-1055 Email: [email protected] © September 2006 Legal Disclaimer The information and statistics contained in this document were obtained from various sources available to the Telecommunications Authority of Trinidad and Tobago at the time of publication. The Authority does not accept any responsibility for any loss or damage howsoever caused through any reliance whatsoever placed on any statements or any calculations howsoever made from this document. 2 Copyright © Telecommunications Authority of Trinidad and Tobago TATT: 2/10 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 Table of Contents 1. Overall Market Data ............................................................................................................... 5 2. Fixed Line Market Data.......................................................................................................... 7 3. Mobile Market Data.............................................................................................................. 11 3.1. Mobile Subscribers .................................................................................................. 11 3.2. Mobile Revenues ..................................................................................................... 12 3.3. Mobile Retail Prices ................................................................................................ 13 4. International Traffic Data ..................................................................................................... 15 5. Internet Market Data............................................................................................................. 16 6. Broadcasting Market Data .................................................................................................... 19 7. Summary and Outlook.......................................................................................................... 22 8. Appendix I ............................................................................................................................ 23 3 Copyright © Telecommunications Authority of Trinidad and Tobago TATT: 2/10 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 List of Tables Table 1: Number of Authorizations................................................................................................. 5 Table 2: Telecom Statistics .......................................................................................................... 23 Table 3: Internet Monthly Charges................................................................................................ 25 List of Figures Figure 1: Telecommunications and Broadcasting Sector Market Share Q1 2006........................... 6 Figure 2: Share of Fixed Line Market Revenue Q1 2006 ............................................................... 7 Figure 3: Fixed Line Revenues FY 2000/01 – FY 2005/06 ............................................................ 8 Figure 4: Fixed Line Subscribers Q1 2006...................................................................................... 9 Figure 5: Fixed Line Subscribers FY2000/01-FY2005/06.............................................................. 9 Figure 6: Mobile Subscribers 2001-2005 & As at March 2006 .................................................... 11 Figure 7: Mobile Market Revenues Q1 2006 ................................................................................ 12 Figure 8: Mobile Market Revenues 2001-2005............................................................................. 13 Figure 9: Average Mobile to Mobile Rates (On-net) March 2006................................................ 14 Figure 10: International Traffic Data 2001-2005 & Q1 2006 ....................................................... 15 Figure 11: Internet Market Share as at March 2006...................................................................... 16 Figure 12: Internet Subscribers 2001-2005 & As at March 2006 ................................................. 17 Figure 13: Internet Penetration 2001-2005.................................................................................... 18 Figure 14: Internet Users 2001-2005 & Q1 2006.......................................................................... 18 Figure 15: Subscription Television Market Share – Subscribers as at March 2006...................... 19 Figure 16: Subscription TV Monthly Charges .............................................................................. 20 Figure 17: Subscription TV Revenues Q1 2006............................................................................ 20 Figure 18: Subscription TV Revenues 2001-2005 ........................................................................ 21 Figure 19: Telecom Statistics ........................................................................................................ 24 4 Copyright © Telecommunications Authority of Trinidad and Tobago TATT: 2/10 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 1. Overall Market Data The data presented in this report are primarily based on the results of a survey of concessionaires conducted within the telecommunications and broadcasting sectors for the period 1st January to 31st March 2006, historical data series and other information made available to the TATT at the time of the report. Subsequent to this publication, the TATT will publish quarterly market updates on the telecommunications and broadcasting sectors. Under the ambit of the Telecommunications Act 2001, the Telecommunications Authority of Trinidad and Tobago (TATT) is responsible for making recommendations to the Minister of Public Administration and Information for the granting of concessions to telecommunications operators (Section 21(5)). The TATT is however, authorized under Section 36 of the Telecommunications Act, 2001 also responsible for the granting of licences. In accordance with these legislative powers, as at March 2006, TATT has authorized a total of 86 licences while 54 concessions were granted by the Minister (Table 1). Table 1: Number of Authorizations Total Authorizations As at March 2006 Licences Spectrum 19 General Radiocommunications 20 Broadcasting 38 Maritime 5 Special Events 4 Total 86 Concessions Fixed and international 12 Mobile 3 Broadcasting 39 Total 54 Source: Policy, Pricing & Research Unit TATT In 2005, the estimated gross revenue take-up of the telecommunications and broadcasting sectors totaled TT$ 3 billion or US$ 477.9 million which represents approximately 4 per cent of GDP for 2005. Of this amount, mobile services obtained the most revenues with approximately 41 per cent of the earnings for the year. The fixed1 market accounted for 23 per cent, while international and 1 Fixed market revenues include revenues earned from fixed voice (excluding international), fixed access and leased circuits. 5 Copyright © Telecommunications Authority of Trinidad and Tobago TATT: 2/10 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 radio represented 12 and 11 per cent respectively, with 9 per cent for subscription broadcasting. The smallest market within the ICT sector was the internet services having accounted for approximately 4 per cent of the total earnings for the year ending December 2005. Figure 1: Telecommunications and Broadcasting Sector Market Share 2005 Radio Fixed 11% Subscription TV 23% 9% Internet 4% International 12% Mobile 41% Source: Policy, Pricing & Research, TATT 6 Copyright © Telecommunications Authority of Trinidad and Tobago TATT: 2/10 September 30, 2006 Domestic Market Analysis of the Telecommunications and Broadcasting Sectors March 2006 2. Fixed Line Market Data Although the telecommunications market was opened to competition in December 2005, there exists only one fixed line telephone service provider in Trinidad and Tobago, the incumbent, Telecommunications Services of Trinidad and Tobago Limited, TSTT. TSTT currently offers fixed telephony services through its Integrated Service Digital Network, (ISDN). Figure 2: Share of Fixed Line Market Revenue Q1 2006 100% 80% 56.5 53.2 51.8 60% 40% 48.2 20% 43.5 46.8 0% Jan-06 Feb-06 Mar-06 Residential Business ________________________________________________________________________________________________ Source: Policy, Pricing & Research Unit, TATT For the quarter ending March 31, 2006, the total gross revenues earned from fixed line subscribers, amounted to TT$135.6 million. Of this amount, residential customers accounted for TT$ 62.5 million or 46.2 per cent of the total earnings. Revenues from business customers on the other hand, accounted for the majority of total earnings for the quarter. At a disaggregated level within this three month period, business customers remained the dominant earner of revenues from fixed line services with declining market share of 56.5, 53.2 and 51.8 per cent respectively. The total fixed line revenue for the year ending March 31, 2006
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