The Paraguayan government has launched its National Telecommunications Plan (PNT, acronym in Spanish) with ambitious objectives, focusing mainly on boosting broadband access. Among its main goals, the telecom regulator Comisión Nacional de Telecomunicaciones (Conatel) aims to reach 50% of homes with broadband by 2015 and deploy 1,000 kilometers (about 620 miles) of urban-fiber optic cable per year.
PNT stipulates investment of U.S. $150 million per year until 2015. In 2009, investments were less than $100 million, which is lower than the average rate of Latin America countries. Since 2006, public and private investment in Paraguay’s telecom sector has increased, with mobile accounting for the biggest portion, the government said.
The PNT sets 13 goals and priorities for the regulator for the next three years, including a regulatory mark. Government aims to increase the mobile-lines teledensity from 88.5% to 100% penetration and fixed-lines to 10% from 6.1%. Mobile coverage is aimed at reaching 95% nationwide, compared with 83% today.
In terms of broadband, the PNT sets targets for mobile access through cellphones to climb from 4% this year to 50% by 2015, and for general broadband penetration to jump from its current level of 13% to 50% in three years. Internet broadband is scheduled to cover 200 municipalities, compared with 76 with service today.
The objectives include reaching 200 of the country’s towns with fiber-optic networks. The Fondo de Servicio Universal will be one of the mechanisms for meeting that goal. The proposal will set the delivery of subsidies to the companies proposing to reach different cities with fiber optic that are not covered and are not near a route with fiber.
The plans also include digital TV goals. The government is aiming for 200 municipalities to have access to digital TV by 2015, with 50% penetration.
Telecoms scenario
In the National Telecommunications Plan, Paraguay presented some scenario numbers dated from 2009. By that time, there are 387,000 fixed-lines in the country, which is 6.1 lines per 100 people. Fixed services are offered by state-owned company Copaco.
In terms of mobile, according to Conatel, there were 5,595,971 subscribers in 2009, an increase of 221% from 2004. Mobile penetration is higher than fixed: there are 88.5 lines per 100 people, and coverage reaches 97.7% of the country.
All access is through GSM, but at the end of 2010, three mobile carriers offered 3G Internet broadband services with HSPA technology. Telecel calls for 58% of market share, followed by Núcleo with 29.8%, América Móvil (AMX) with 8% and Hola Paraguay with 4.1%. Copaco has 40MHz in the frequency bands of 1,700-2,100 MHz band but does not operate yet. The same happens with Rieder, which has 26 MHz in the 900MHz.
Telecel is also the main Internet provider, with 67% of market share. Telecel uses the 3.5 GHz – WiMAX, which is mainly technology for fixed Internet in Paraguay. Copaco has 17% of market share, offering Internet via cable. Personal has 12% and also uses 3.5 GHz. There is also Multicanal, which accounts for 3%. Combined, these four companies represent 95% of the total market. However, there is still a long way to go. In Paraguay, there are only 165,000 national connections.
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