Spotlight: Venezuela's telecommunications plans for 2023-25

Venezuela has set out some ambitious goals for the implementation of telecommunications services in the country for 2023-25.

The new telecommunications plan prepared by regulator Conatel outlines targets related to the deployment of fiber optics, allocation of new 4G and 5G frequency bands, and interconnection between operators to expand domestic internet traffic.

It also establishes objectives for the security of telecommunications infrastructure, generation of a more inclusive communication model, digital literacy plans and expansion of the reach of networks, among other things.

Venezuela finally seems to be beginning to recover from years of economic crisis that meant that telecommunications operators in the country were only surviving rather than thriving.

According to the latest report from the regulator, investment in Venezuela’s telecommunications sector was 1.42bn bolívares (US$52.3mn) in 4Q22, jumping 245% from the same quarter of 2021 and more than 300% above that in 3Q22.

Revenues reached 4.37bn bolívares in the same period, of which 49% came from mobile telephony and 18.6% from internet services.

Venezuela had a total of 19.8mn mobile phone lines at the end of last year, up 2.32%, with the market divided between Telefónica (39.5%), Digitel (35.7%) and Movilnet (24.7%). 

Of the users, 47.9% connect through 4G and 51.5% through 3G lines.

As of December 31, Venezuela had 3.2mn subscribers of broadcast services, down 2.3%. Some 53.5% of those services were satellite TV, followed by cable TV with 43.5%.

Simple TV is the predominant pay-TV provider, with 42.8% of subscribers, followed by Intercable with 21.0% and Cantv with 8.7%.

Fixed broadband subscribers reached 2.58mn, remaining flat compared with end-2021. The country also had 937,000 dedicated mobile broadband subscribers and 64,000 dial-up subscribers.

Cantv is the biggest traditional internet operator, with 55.9% of the connections.

NATIONAL FIBER OPTIC DEPLOYMENT

The 2023-25 plan foresees the deployment of 16,000km of fiber optics for transport networks, of which 5,000km will be built this year, 5,000km next and 6,000km in 2025.

At the same time, the intention is to light 7,000km of the network of the eighth project of universal telecommunications service (Opsut), with capacities of up to 100Gb. That will be done by third parties in two parts, one for 4,000km and the other for 3,000km. The network should be fully lit by 2024.

TRANSPORTATION AND LAST MILE

Work will also be done to expand and modernize the transport network and last-mile infrastructure with the development of new general telecommunications routes (VGTs) for the provision of fiber optic internet to the home (FTTH/GPON) to 1.8mn subscribers in three stages: 500,000 subscribers in 2023, 600,000 in 2024 and 700,000 in 2025.

The plan also involves the deployment of 65,000km of last-mile fiber optics, also in three stages: 25,000km this year and 20,000km in both 2024 and 2025.

Telecommunications network coverage will also be expanded to 75 new localities by the end of 2025.

TRAFFIC EXCHANGE POINTS

Conatel is preparing a regulatory legal framework for the interconnection of operators at traffic exchange points (IXPs) that should be ready this year. Negotiations are expected to begin next year with content providers for the installation of equipment in Venezuela's IXPs during 2024.

The Caracas IXP should interconnect 18 internet providers next year, and in 2025 the target is to develop another two regional interconnection points.

DATACENTERS

Venezuela intends to grant and modify general authorizations for 10 datacenter management applications this year with the aim of promoting the development of this sector, in addition to handling any new applications.

INTERNATIONAL CONNECTIVITY

Telecommunications authorities have also set the goal of expanding international connectivity to 25Tbps, with the first stage to reach 10Tbps in 2024 and adding another 15Tbps in 2025.

Development of two additional international connectivity routes is also planned.

MOBILE INFRASTRUCTURE

Among the targets for the mobile service, Conatel foresees the installation of 600 new 4G base stations this year, 700 in 2024 and 800 in 2025.

The program outlines changes to the regulation of internet service quality, IPV6 protocol and development of an inclusive communication model, among others.

The plan is also to expand the capacity of another 2,100 radio bases and install 300 more in areas where there is high traffic.

The general target is for 90% of the Venezuelan population to have access to at least a 4G network by 2025.

To support the future 5G network, some 300 radio bases are also planned to be connected optic fiber.

SPECTRUM

Conatel expects that a pilot plan for 5G technology will be launched in 2023, while a public tender to offer frequency bands for 4G is expected to take place in the fourth quarter of 2023, with the bidding process for 5G pencilled in for 2024.

This year, plans are expected to be drawn up for migration of the 700MHz band to enable that process to be carried out.