DApp Mobile Services USD Revenue To Decrease In Venezuela

Innovation, Investing, News | October 17, 2018 By:

US$ mobile services revenue in Venezuela will decrease from US$69m in 2018 to $3m in 2023, reflecting the rapid depreciation of the Venezuelan Bolivar due to the current economic crisis, according to GlobalData, a leading data and analytics company.

However, this will grow at a compound annual growth rate (CAGR) of 145.5% in local currency over the same period as a result of the hyperinflation engulfing the nation.

Leandro Agion, senior technology analyst at GlobalData, said substantial price hikes implemented by the local operators to catch up on inflation levels “will have little effect on telecom revenues in USD terms, as the Bolivar continues its steep depreciation. This situation presents a strong challenge to telecom operators that have to protect their operations from the current economic crisis.”

Venezuela’s mobile subscriptions will drop from 25.2m in 2017 to 24.1m by year-end 2018. Over the next five years, mobile operators are expected to add a combined 1.1m mobile subscribers, moving the total mobile base to 25.2m in 2023. This increase will be mainly driven by growth in smartphone subscriptions.

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Agion added, “Despite its challenging economic situation, smartphone subscriptions will reach an estimated 13.3m by year-end 2018 and will grow at a CAGR of 4.8% over 2018-2023 to 16.8m in 2023, driven by the availability of low-cost smartphones from vendors such as Alcatel, BLU, XIAOMI and LG.”