At a Glance: Venezuela mobile penetration dropping on crisis, emigration

The penetration rate of mobile subscriptions in Venezuela is expected to drop in the short term due the country’s socioeconomic situation and the reduction of its population, as many people have emigrated to flee the crisis. 

This is according to the GSM Association (GSMA), which released a new report on the state of the mobile economy in Latin America.  

According to the UN, some 3.7mn Venezuelans left the country between 2015 and May of this year.

The mobile industry entity expects the country’s subscriber growth rate to become positive again only by 2025.

The so-called “usage gap” in Venezuela – that is, the percentage of the population covered by mobile networks but who are not mobile internet subscribers – is 57%, among the highest in the region. It trails only the 59% gap in Nicaragua, said GSMA.

With skyrocketing hyperinflation, affordability remains the chief barrier to closing the usage gap.

REGIONAL

In 2019, there were 422mn mobile subscribers across Latin America, or around 67% of the total population, according to the report. 

Nearly 80% of the subscribers also subscribe to mobile internet (3G or 4G) and this figure is forecast to reach 87% by 2025. 

According to GSMA, the mobile industry's contribution to the Latin American economy will reach over US$300bn, as countries increasingly benefit from greater uptake of mobile services and the associated improvements in productivity and efficiency.

Driven by ongoing network investment and upcoming spectrum assignments, 4G adoption will accelerate in Latin America over the next few years, reaching 67% by 2025, paving the way for 5G, GSMA said.

GSMA stresses that both technologies will coexist for a long time and that the first commercial launch of 5G in the region is expected to take place in 2020. 

The entity does not count Uruguay’s Antel’s network activation in April this year as a commercial launch.