The Colombian data communications services market is already a mature market, with significant competitive pressure, according to a new research report from Frost & Sullivan (News - Alert), Colombian Data Communications Services Market.

 

The research observes that to sustain revenue growth, operators are crafting new strategies, pushing migration to IP, and also bundling data with other telecom products to “better penetrate the small and medium businesses (SMBs) market.”

 

The research finds that the market earned revenues of $344.9 million in 2006. Also, it predicts revenues to reach $469.0 million in 2012.

 

Gina Sánchez, research analyst for the telecom services group at Frost & Sullivan, noted that the Colombian data communications services market experienced moderate growth in 2006.

 

“Growth was driven by the country's economic growth, the expansion of the rest of the telecommunications sector and the progressive addition of smaller clients to the market,” he said in a press statement.

 

Colombia’s GDP grew more than 12 percent in 2006. The total telecommunications market growth rate also exceeded 12 percent, while some sectors such as mobile telephony expanded at rates well above 20 percent, according to the research report.

 

The report also suggests that due to the level of maturity and competitiveness of the data communications market, operators will have a hard time maintaining current growth rates.

 

Sanchez pointed out that the large corporations segment is almost saturated, and therefore, operators are looking at small and medium-sized businesses in order to sustain further revenue growth.

 

According to Sanchez, product bundles and IP technologies offer more flexibility and affordable prices. He commented, “Those are the weapons operators are using to fight in such a competitive market.”

 

The report observed that to create awareness about their solutions in the potential/target end-user segments, industry participants will remain focus on their core competencies.

 

In addition, operators will also continue to enhance their product features and offer robust solutions in the market including bundled services and special solutions to medium and small segments.

 

 

Colombian Data Communications (News - Alert) Services Market is part of the Communication Services Growth Partnership Services program at Frost & Sullivan, which also includes research in markets such as fixed telephony, mobile telephony and data communications.