Counterpoint Research is attending Tech In Asia Conference on 18th October 2023
Our Senior Analyst, Febriman Abdillah will be attending the Tech In Asia Conference 2023 at Jakarta, Indonesia. You can schedule a meeting with him to discuss the latest trends in the technology, media and telecommunication sector and understand how our leading research and services can help your business.
When: 18th October 2023
Where: Jakarta, Indonesia
About the Tech In Asia Conference:
Tech in Asia is a Singapore-based English-language technology media company that focuses on Asia. From the latest news to the hottest trends and the boldest startups to the strongest titans, TIA covers everything tech in the region, with the goal is to build and serve Asia’s tech and startup community.
Tech in Asia Conference is TIA’s flagship event, providing high-impact learning and networking opportunities to Asia’s tech and startup community. Over the last eleven years, TIA Conference has been hosted in Singapore, Jakarta, Tokyo, and Bangalore.
Click here (or send us an email at contact@counterpointresearch.com) to schedule a meeting with them.
Apple’s iPhone 11 was the third best-selling model in Mexico in Q2 2023.
60% of the models in the top 10 list were priced below $150.
Samsung’s Galaxy A34, Galaxy A54 5G were the only two 5G models on the top 10 list.
Mexico is the second most important smartphone market in Latin America. The country has the second-highest population in the region and hosts an extremely competitive ecosystem. Mexico’s geographical size and lack of import barriers make it an extremely attractive smartphone market.
The top-selling models accounted for 35% of Mexico’s total smartphone market in Q2 2023. The top 10 list almost appears like Samsung’s performance for the quarter as the brand dominated the top-selling chart in Mexico in Q2 2023. Five of the 10 best-selling models were from Samsung. According to Counterpoint’s Market Pulse Report, Samsung’s share in Q2 2023 was slightly more than 30%.
OPPO and Motorola both had two models in the Q2 2023 top-selling list. Motorola, which has always been a strong player in the Mexican market, launched a few new models during the quarter that helped the brand increase its market share. OPPO, a relatively new entrant in the LATAM market, managed to retain its third position in market share with two of its models in the top-selling list.
Source: Counterpoint Research Market Pulse, Q2 2023
60% of the models in the top 10 list were priced below $150. This price band accounts for 52% of the overall smartphone market in Mexico. However, premiumization is infiltrating the Mexican market, and the number of models in the >$150 band is increasing in the top-selling list. This trend is accelerating slowly but will surely lead to a higher overall smartphone ASP.
Apple’s four-year-old iPhone 11 has been part of the Mexican bestseller list for a few quarters now. It was the third best-selling model in the Mexican market in Q2 2023. The iPhone 11, which is a 4G model, was the most expensive model on the list. The massive sales of this model reflect the strength of Apple’s branding.
The 4G version of OPPO’s Reno 7 was another model in the bestsellers list priced more than $150. This is quite an achievement for the brand, which arrived in the region just three years ago. OPPO is still building its branding in the Mexican market. The Reno 7 has been in the Mexican top-selling chart since December 2022.
It is noteworthy that only two models in the chart are 5G phones – the Samsung Galaxy A34 and the Samsung Galaxy A54 5G. The latter one is also the most expensive Samsung model in the top-selling list. Meanwhile, Telcel has been pushing its subscriber base to replace their phone with a 5G one. Mexican consumers are still not ready for 5G technology. They would rather get more specs than access the technology.
MEA smartphone shipments increased 1% YoY and 7% QoQ in Q2 2023.
Consumer sentiment picked up during the quarter with falling inflation rates and stabilizing local currencies. These boosted demand for ‘big ticket’ items like smartphones.
Samsung saw a rebound in its shipments and market share during the quarter.
Transsion Group’s shipments grew 2% YoY, or an impressive 14% QoQ, in a typically weak quarter.
Apple continued its steep rise, with shipments up 75% YoY in Q2.
London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – September 5, 2023
Smartphone shipments in the Middle East and Africa (MEA) region increased 1% YoY and 7% QoQ in Q2 2023, according to the latest research from Counterpoint’s Market Monitor Service. This was the MEA smartphone market’s first meaningful rebound in five quarters, or since the global inflation crisis started. Consumer sentiment improved materially during the quarter, as inflation rates fell and local currencies stabilized. This came as a welcome relief for embattled OEMs, which had been sitting on an alarming level of inventory in 2022. They utilized the opportunity to destock and return to a more normal pattern of inventory and product launches.
Commenting on the market’s performance, Senior Analyst Yang Wang said, “The MEA region seems to be the first to come out of the global downturn in the smartphone market. Market activity picked up during the quarter on better macroeconomic environment and consumers could afford to be more optimistic about ‘big ticket’ item purchases. This was reflected in robust Ramadan and Easter sales and throughout the quarter. The encouraging performances show once again that the MEA region could be the last remaining untapped smartphone market. There is still significant potential for large segments of the population to upgrade to smartphones.”Looking at individual brands, Samsung, TECNO and Apple were the biggest winners. Samsung’s rebound can be attributed to the lower-priced Galaxy A series’ strong sales, while new 5G and premium-end models also did well. TECNO, and sister brand Infinix to some extent, performed very well due to better economic conditions, particularly for lower income groups, and aggressive market entries in the Middle East. TECNO and Infinix’s successes, however, can be partly attributed to the cannibalization of itel’s market share. Lastly, Apple had an outstanding quarter to round off a very strong iPhone 14 series cycle. The OEM managed to increase penetration in key Middle East markets with the higher-priced Pro and Pro Max models getting good reception.
On the other hand, Xiaomi retreated 17% YoY as it faced strong competition from Samsung and Transsion brands in the mid-range. Outside of the top 10, OPPO and vivo continued to slide as the availability of the brands’ stock contracted and market penetration activities shrank. However, realme maintained positive momentum due to increasing product availability in new markets.
Commenting on pricing trends in the MEA smartphone market, Wang said, “The premium end is usually an afterthought for the MEA market, but the segment was an outperformer of Q2 2023. The sales of smartphones priced above $800 grew 93% YoY, largely due to Apple’s high-end models in the iPhone 14 series. The OEM’s share increased in key GCC markets, while it was seen making efforts to expand distribution channels in Africa. Apple’s success in the MEA region is another proof of the brand’s strong global appeal. As the process of urbanization and industrialization continues across the region, Apple can expect to remain one of the top OEMs in the region.”
Counterpoint Research’s market-leading Market Monitor, Market Pulse and Model Sales services for mobile handsets are available for subscribing clients.
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Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Results driven by design wins in the automotive and industrial application sectors.
EMEA had the highest growth in revenue at 31% YoY and surpassed the Americas in terms of contribution.
u-blox to experience a reduction in revenue in Q3 2023 and remain sluggish in H2 2023.
Global wireless and positioning technologies leader u-blox’s H1 2023 revenue rose 17% YoY to reach $364.3 million, primarily driven by successful design wins within the automotive and industrial application sectors. However, gains were limited by a decline in consumer revenue.
During u-blox’s earnings call, CEO Stephan Zizala touched upon several important topics like significant design wins, prevailing macroeconomic challenges, and the company’s proactive management strategy for the future.
Macroeconomic Situation and Outlook
CEO: “In a softening macroeconomic and global semiconductor market environment, our order book for H2 2023 developed more slowly than initially anticipated. Mainly due to unfavorable FX rates and overstocking, we expect Q3 revenues and profitability to be weak, with an improvement in Q4.”
Our analyst take: “The IoT module industry is decelerating because of broader macroeconomic conditions and a softening semiconductor market. Key players in the cellular IoT module sector, including Quectel and Telit Cinterion, have witnessed a reduction in growth compared to H1 2022. However, during H1 2023, u-blox achieved significant double-digit expansion, despite significant constraints from the global semiconductor supply chain shortage.”
“However, u-blox is expected to experience a reduction in revenue in Q3 2023 as demand remained weak in the key North American region during H1 2023 and will likely remain sluggish in H2 2023. However, u-blox is optimistic about Q4.”
Management Strategy
CEO: “While we must deal with cycle adaptation, I remain very confident about u-blox’s long-term outlook and growth trajectory, thanks to our strong structural growth drivers in automotive and industrial target applications. We are winning important new projects at leading customers. A large design win for automated driving ramping in 2026 and an innovative approach for satellite IoT connectivity are testimony to these future development prospects.”
Our analyst take: “The automotive industry is undergoing a significant transformation towards electrification and autonomy. This transition highlights the importance of connectivity and navigation, emerging as crucial factors. u-blox stands out from other GNSS competitors due to its exceptional GNSS quality and centimeter-level precision in positioning.”
“Apart from its focus on GNSS and cellular technology, u-blox’s recent collaborations with satellite player Orbcomm leverage its strides toward present-day trends. The aim is to offer hybrid connectivity solutions (combining cellular and satellite capabilities) catering to agriculture, asset tracking, and maritime applications, promising enhanced coverage and communication. However, u-blox is set to encounter intense competition from Quectel, Fibocom, and Telit Cinterion, as they have already introduced hybrid connectivity modules.”H1 2023 Highlights:
u-blox’s gross profit increased 12% YoY in H1 2023 to reach $171 million.
The industrial sector accounted for 65% of the total company revenue and experienced a robust 26% YoY growth. This growth was attributed to significant demand in asset tracking applications.
The automotive segment also exhibited growth, increasing 24% YoY and accounting for 30% to the overall revenue, driven by the acceleration of electric vehicle adoption and advancements in autonomy.
Conversely, the consumer and other segments faced a decline of 55% YoY, accounting for only 5% of the total revenue. This decline was primarily driven by decreased consumer demand starting from mid-2022.
Among regions, APAC was the highest contributor, capturing 43% of the market with 30% YoY growth due to demand from automotive customers and safety stock buildup for healthcare customers. EMEA shows the highest growth with 31% YoY and contributed 32% of the market surpassing Americas with a ramp-up of the tracking business and 2022 order backlog. However, the US region’s revenue fell 12% YoY, accounting for only 25% of the market due to demand reduction in healthcare and consumer applications.
In H1 2023, modules and chips accounted for 80% and 19% of the total revenue, respectively. Module volume grew 9% YoY growth in H1 2023, while chip volume saw a remarkable increase of 31% YoY.
In the module revenue segment, the GNSS module retained its leading position, generating over half of the total revenue. This is attributed to the exceptional quality and precision of u-blox’s GNSS products. The collaboration with GMV resulted in significant design wins, merging u-blox’s GNSS receiver hardware with GMV’s secure correction service, sensor fusion and positioning engine. Furthermore, u-blox has partnered with Position Partners to introduce the PointPerfect GNSS augmentation service to Victoria and New South Wales. This marks the initial phase of the service’s rollout within the Australian and New Zealand markets.
In H1 2023, the Wi-Fi/BT module segment grew 10% YoY. u-blox’s latest release, the JODY-W5, introduced the newest dual-band Wi-Fi 6 and dual-mode Bluetooth® 5.3 module, featuring Bluetooth LE audio within a compact form factor. This design is aimed at preventing wireless network congestion within vehicles while simultaneously enhancing audio capabilities.
According to Counterpoint Research’s Cellular IoT Module Tracker service, u-blox’s cellular IoT module segment grew 18% YoY in H1 2023 to reach $106 million. u-blox has accelerated its adoption of tracking applications driven by the strong performance of its UBX-R5 chipset-based LPWA and LTE-M modules.
Conclusion
Given the macroeconomic challenges characterized by adverse shifts in FX rates and customer overstocking, u-blox’s market outlook for H2 2023 suggests a substantial deceleration. The rise in inventory levels is expected to lead to a decrease in profitability during Q3 2023, followed by a recovery in Q4 2023. However, the demand and requirements for semiconductor solutions, particularly in domains such as autonomous driving, asset tracking and industrial automation, are poised for substantial growth. u-blox remains strategically positioned to capitalize on this growth trend due to its strong expertise in positioning technology and wireless connectivity, which is expected to result in more design wins.
Counterpoint is attending the IAA Mobility Event from September 4th – September 10th, 2023
Our analysts will be attending the IAA Mobility Event, 2023. You can schedule a meeting with them to discuss the latest trends in the technology, media and telecommunications sector and understand how our leading research and services can help your business.
Here is the list of team members attending the event:
Dive into the latest innovations in sustainable, smartly connected mobility solutions at the IAA Summit held at the Munich Exhibition Grounds. Throughout the day and evening, network with industry peers at the myriad of events hosted by our exhibitors. Join the IAA Conference to engage in discussions about the future of mobility with over 500 stakeholders, visionaries, policymakers, and influential figures who are eager to share their perspectives with the public and industry.
Click here (or send us an email at contact@counterpointresearch.com) to schedule a meeting with them.
Philippines smartphone shipments fell 20% YoY due to sustained low demand driven by a combination of factors like high taxes and inflation.
Xiaomi rose to the third position on the Note 12 series’ success and 19% YoY shipment growth.
Back-to-back launches propelled TECNO’s YoY growth to 73%.
Premium buyers shrugged off higher costs to drive the segment’s 26% YoY growth.
5G smartphones under $200 witnessed 25% YoY growth.
Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 10, 2023
Smartphone shipments in the Philippines recorded a 20% YoY decline in Q2 2023 due to sustained low demand driven by a combination of factors such as high consumption taxes, elevated production and distribution costs following public utilities’ privatization, and a weak Peso, according to Counterpoint Research’s Philippines Monthly Smartphone Channel Share Tracker.
Source: Counterpoint Research
Many of the major brands saw significant downswings this quarter. Though realme continued to be the number one brand, its market share reduced to 17.3% after a 37% YoY decline in shipments due to limited product launches and weakened smartphone demand. The brand could keep its number one spot due to the popularity of its C55 model, which was also the market’s top-selling model in Q2 2023, and the C53 model, which was sold out on Lazada overnight. Samsung experienced a YoY shipment decline of 26% in Q2 2023, owing again to fewer model launches and limited promotions in the budget segment.
Xiaomi overtook OPPO to take the third position in the Philippines in Q2 2023. The brand recorded 19% YoY growth boosted by a good reception of its Note 12 series. Xiaomi also held its annual fan festival in April, where it offered promotions, especially on the newly launched Note 12 series and popular 12C model, further fuelling its growth.
OPPO and vivo witnessed shipment declines of 34% and 43%, respectively. Both brands were part of the payday promotions in June, but the offers were restricted more toward the older models to clear inventory. Infinix recorded marginal growth of around 3% but increased its market share to 9.7% to enter the top five brands for the quarter. Its budget Hot 30 series performed well, while the Note 30 series got a good reception as a decent gaming phone.
TECNO performed well in this quarter, recording 73% YoY shipment growth driven by its quick, successive model launches. The newly launched Spark Go and Spark 10 series are doing particularly well due to their competitive prices.
Shipments of smartphones priced less than $200 and in the $200-$399 segment decreased by 22% and 16% YoY, respectively, due to constrained consumer spending. The $400-$599 segment recorded a bigger decline of 54% as it saw fewer launches by major brands such as Samsung and realme.
However, the premium segment (>$600) witnessed a 26% YoY increase, the only segment to show YoY growth. Apple still led this segment with a 43% share. The brand’s official reseller, Powermac, has expanded its Apple Premium Partnership store presence to give Apple customers an enhanced experience along with deals and promotions. Other offers by retailers centered around 0% installments and iPhone bundled offers.
For this quarter, 5G smartphones saw a decline in all price segments except the below $200 segment, which witnessed a 25% YoY growth driven by the introduction of Infinix Zero 5G and Note 30, along with TECNO’s 5G version of the Spark 10 series. Telecom operators are making efforts to keep up with operators like Globe Telecom, which recently rolled out its 5G services at 66 more sites. However, 5G infrastructure development is still slow in the Philippines and is mainly centered around urban areas like Greater Manila, Cebu and Davao.
Outlook
Inflationary pressures have been decreasing in the Philippines, thus giving some relief to consumers. While we may see another quarter of YoY decline, demand is likely to increase, especially with online and offline channel promotions. The premium segment is also expected to do well as Apple and Samsung launch premium models in the coming quarter.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Global PC shipments fell 15% YoY in Q2 2023 but rose 8% QoQ.
PC OEMs’ rankings remained unchanged.
HP and Apple reported relatively resilient performance.
We maintain a double-digit YoY shipment decline outlook for 2023.
Global PC shipments will return to pre-COVID-19 levels in H2 2023.
London, Hong Kong, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – July 14, 2023
Global PC shipments fell 15% YoY in Q2 2023 but rose 8% QoQ, according to Counterpoint’s PC tracker service. Although the inventory levels continued to normalize in Q2, another double-digit YoY decline was recorded after the 28% YoY decline in Q1. Therefore, the YoY decline in Q2 can be seen as relatively stabilizing the shipment downturn since Q1 2022. Also, the QoQ growth in Q2 was the first since Q1 2022. The shipment numbers of Q2 can be considered an early sign of stabilization in the PC market. We can expect a mild recovery in H2 2023 due to the absence of solid growth drivers.
Source: Counterpoint Research
Vendors except HP and Apple suffered double-digit shipment declines
Lenovo’s solid #1 place in shipments remained unchanged in Q2, though the company still experienced an 18% YoY decline due to persistent soft demand in some markets. The double-digit sequential growth is a sign of normalizing demand and healthier inventory levels.
HP’s 22% market share was the highest since Q2 2021, while its resilient shipment numbers were a mix of early inventory correction and incremental Chromebook orders.
Dell reported sequential shipment growth in the quarter but a double-digit YoY decline due to overall demand weakness.
Apple saw a high single-digit shipment growth when compared to last year. The growth was largely due to the relatively low Q2 2022 and partially due to new product launches.
Negative factors are weakening in H2 2023
Though the global PC market shipments saw their first QoQ rise after Q1 2022 in Q2, according to Counterpoint’s Macro Index Tracker, the market may have to experience some turbulence in the second half of this year before seeing the first sunrise. Based on our checks, the end demand has picked up to become stronger than OEM shipments (sell-in), which would likely translate into accelerating re-order demand. In H2 2023, we are expecting back-to-school momentum to strengthen sales numbers coupled with potential AI-enabled and Arm laptop launches. Overall, the market is stepping away from the lull and moving toward a new post-COVID-19 normal.
Source: Counterpoint Research
Global PC shipments to return to pre-COVID-19 levels in H2 2023
We expect the QoQ rebound seen in Q2 2023 to sustain throughout the rest of the year. However, we reiterate our cautiously optimistic view on shipment performance in H2, as we still expect the shipments to decline YoY in the coming quarters before ultimately regaining their growth momentum. Therefore, we maintain our outlook of a double-digit YoY shipment decline in the 2023 full year. But the shipments will return to pre-COVID-19 levels in H2 2023.
We believe the PC inventory will enter 2024 at a healthy level after two more quarters of adjustments. Replacement demand, AI-enabled models and Chromebook renewal could be potential growth drivers even as we keep a close eye on enterprise expenditure plans.
Over the past few weeks, tech giants Meta and Google announced that they will no longer be publishing Canadian news on their platforms within Canada following the passage of Bill C-18, or the Online News Act, due to concerns over financial liability imposed on them by the Act. The new law requires large news aggregators operating in the country to pay for the news links they post on their platforms. Meta has already informed news outlets, including The Globe and Mail and The Canadian Press, that their contracts will end at the end of July and that Meta will no longer post the news outlets’ content.
What is Bill C-18 and what is the goal it intends to reach?
Section 4 of the Online News Act states the purpose of the bill is:
“…to regulate digital news intermediaries with a view to enhancing fairness in the Canadian digital news marketplace and contributing to its sustainability, including the sustainability of news businesses in Canada, in both the non-profit and for-profits sectors, including independent local ones.”
In layman’s terms, the government wants to increase the visibility of smaller local news outlets to expand the portfolio of news sources and to avoid the dominance of the few large news publishers who have contracts with large media aggregators like Meta and Alphabet (Facebook and Google). The way this legislation intends to reach its goal is by imposing a ‘link tax’ on these large media aggregators, which means they will have to pay for the news links that they post on their platforms. These media platforms will be expected to keep a roster of the ‘eligible journalists’ that are posted on the platform to ensure there is transparency on the news outlets and to ensure there is enough representation from underrepresented groups. These regulations aim to hold the media platforms accountable to ensure they are giving more news sources an equal opportunity to be promoted on these large platforms.
Tech giants’ concerns with Bill C-18
Despite the goal of equal news source opportunity, these tech giants are choosing to block Canadian headlines rather than comply. Google announced concerns that led it to pull from the Canadian media market:
Subsidizing and promoting ‘Bad Actors’ and strict media control from the government
Google explained in their statement that the definition provided for ‘eligible news businesses’ is very broad with low standards for journalistic integrity, which could risk the spread of propaganda and fake news. This gives rise to the issue of Google having to pay these outlets and provide them with profit and a platform to peddle poor information. This is currently prevented through qualifying criteria for journalism tax credits to be considered in Canada.
As Google pays proportionally for these headings, the act also stipulates that there is no ‘undue preference’ in the rank of relevant searches that Google currently uses. This means that there is a chance these bad actors could achieve a higher ranking in the searches and therefore reach Canadians a lot easier than with the current Google algorithm, which aims to return the most reliable and relevant sources.
On the flip side, the Canadian Radio-television and Telecommunications Commission (CRTC) will be responsible for qualifying who is considered an ‘eligible journalist’ and will be able to control the content that Canadians have access to. Although this could help control the foreign ‘eligible journalist’ who may peddle propaganda, it will also give more control to the government regarding what news Canadians will have access to that could eventually create a bubble. There is little information about the checks and balances that are in place by the CRTC to moderate these eligible news sources.
Lose-Lose business deal for Google and Meta
The new bill would require Google to pay news outlets for the links they provide, but ultimately the link is driving visitors to the publisher’s website. This means that instead of free marketing of the news article on Google (which is currently happening), the news outlet would get free marketing plus a pay cheque from Google. Aside from the journalistic morale that Google outlined before, from a business perspective, it makes very little sense for Google to participate as they would be paying the client and also providing them with a free service.
Status and the expected implications
This is past being a bluff from these large tech companies; the media industry has seen the power these giants have, as a similar legislation change happened in Spain which caused Google News to shut down for almost seven years, although ultimately it ended up returning after there were changes to the law. The CRTC announced this week that the ministry is drafting regulations that will address the concerns these media platforms have with the legislation. The ultimate fear of these tech giants is that there is an undefined financial liability that they will be responsible for, so the goal of these drafted regulations is to answer exactly how much these tech giants will be expected to pay if they do decide to keep their services in Canada.
Despite the turmoil this has caused in the Canadian Media market, other governments are also aiming to find ways to limit the media control these privatized media platforms have over the spread of news within a country. US states are exploring similar ways to enforce more competition in the news. Meta and Alphabet’s revenues would take a harder hit if the two companies follow the same course of action in the US as well.
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Colombian telecom operators and government are positive about the outcome of the 5G spectrum auction in December.
The government, telecom operators and regulatory bodies want to increase broadband penetration and provide training to Colombians to bridge the digital divide.
Telecom operators ETB and Claro shared their plans to leverage 5G to enhance verticals like education, mobility, and B2B services.
Even as Colombia looks forward to holding its first 5G auction in December this year, it has much more basic and long-pending telecom sector-related issues that need the attention of all stakeholders, whether the operators or government departments. It is with this in mind that representatives from the Colombian government, regulatory bodies, telecom operators and manufacturers gathered in the nation’s capital, Bogota, at the end of June for the Conecta Colombia summit. The event, which is a part of the series that Conecta Latam organizes in the region, saw discussions on regulation, technology and, of course, business. A team of analysts from Counterpoint was also present at the event. Here are their key takeaways:
5G and connectivity expansion
The potential of 5G technology and its impact on various sectors were essential discussion topics at the event. Telecom operators ETB and Claro shared their plans to leverage 5G to enhance verticals like education, mobility, and B2B services. Investments in broadband and 4G were also emphasized as ongoing priorities alongside the imminent 5G auction. The discussions also recognized the need to focus on network coverage and connectivity expansion, ensuring that before the widespread adoption of 5G.
Main 5G verticals to be developed in Colombia, including a $166 billion opportunity until 2035 as per Hugo Chang at Nokia.
Security and digital transformation
Bridging the digital divide
According to the regulators, by the end of Q1 2023, Colombia had 9 million fixed broadband connections, which means that only approx. 61% of households in Colombia have access to fixed broadband. Highlighting Colombia’s digital divide, speakers at the summit emphasized the need to address challenges Colombians have such as lack of technical skills and connectivity. The government, telecom operators and regulatory bodies discussed strategies to increase broadband penetration, provide training to Colombians, involve regional stakeholders in the sector decision-making, and improve job formalization. The focus was on leveraging technology to narrow the digital divide and ensure equal access to digital opportunities.
“Centros Digitales” at the core of the solution to bridge the digital divide. MinTic aims to reach 85% broadband penetration by 2031 compared to 61% in Q1 2023.5G and connectivity expansion
The potential of 5G technology and its impact on various sectors were essential discussion topics at the event. Telecom operators ETB and Claro shared their plans to leverage 5G to enhance verticals like education, mobility, and B2B services. Investments in broadband and 4G were also emphasized as ongoing priorities alongside the imminent 5G auction. The discussions also recognized the need to focus on network coverage and connectivity expansion, ensuring that before the widespread adoption of 5G.
Main 5G verticals to be developed in Colombia, including a $166 billion opportunity until 2035 as per Hugo Chang at Nokia.Security and digital transformationDuring 2022 there were 20 billion failed cyberattacks in Colombia as disclosed by a Fortinet study, based on that government officials and telecom operators highlighted the importance of cybersecurity for the industry. Panel discussions emphasized the need for a national entity to coordinate carrier efforts and use artificial intelligence (AI) as a defensive tool. Besides, the event explored the concept of digital transformation within telecom companies, with discussions revolving around employee training, customer experience and the transformation of big data into “mega data” facilitated by 5G. The role of alternative revenue drivers such as VoLTE and MVNO products were also highlighted as options before the 5G benefits come to play.Saul Kattan, technical consultant of the Colombian presidency leads the panel discussion on the role of a national cybersecurity entity sponsored by the government.What is next?
On August 1, the regulator will publish the first draft of the auction process, covering the mechanism to be followed and the required technical conditions for the applicants. The second draft will be released one month later and the final in October. In November and December, all the interested parties will submit their applications for the auction, which will start on December 20. 2024 can become the year of the 5G availability in the country.
5G auction and 4G spectrum renovations chronogram.Bridging the digital divide
According to the regulators, by the end of Q1 2023, Colombia had 9 million fixed broadband connections, which means that only approx. 61% of households in Colombia have access to fixed broadband. Highlighting Colombia’s digital divide, speakers at the summit emphasized the need to address challenges Colombians have such as lack of technical skills and connectivity. The government, telecom operators and regulatory bodies discussed strategies to increase broadband penetration, provide training to Colombians, involve regional stakeholders in the sector decision-making, and improve job formalization. The focus was on leveraging technology to narrow the digital divide and ensure equal access to digital opportunities.
“Centros Digitales” at the core of the solution to bridge the digital divide. MinTic aims to reach 85% broadband penetration by 2031 compared to 61% in Q1 2023.5G and connectivity expansion
The potential of 5G technology and its impact on various sectors were essential discussion topics at the event. Telecom operators ETB and Claro shared their plans to leverage 5G to enhance verticals like education, mobility, and B2B services. Investments in broadband and 4G were also emphasized as ongoing priorities alongside the imminent 5G auction. The discussions also recognized the need to focus on network coverage and connectivity expansion, ensuring that before the widespread adoption of 5G.
Main 5G verticals to be developed in Colombia, including a $166 billion opportunity until 2035 as per Hugo Chang at Nokia.Security and digital transformationDuring 2022 there were 20 billion failed cyberattacks in Colombia as disclosed by a Fortinet study, based on that government officials and telecom operators highlighted the importance of cybersecurity for the industry. Panel discussions emphasized the need for a national entity to coordinate carrier efforts and use artificial intelligence (AI) as a defensive tool. Besides, the event explored the concept of digital transformation within telecom companies, with discussions revolving around employee training, customer experience and the transformation of big data into “mega data” facilitated by 5G. The role of alternative revenue drivers such as VoLTE and MVNO products were also highlighted as options before the 5G benefits come to play.Saul Kattan, technical consultant of the Colombian presidency leads the panel discussion on the role of a national cybersecurity entity sponsored by the government.What is next?
On August 1, the regulator will publish the first draft of the auction process, covering the mechanism to be followed and the required technical conditions for the applicants. The second draft will be released one month later and the final in October. In November and December, all the interested parties will submit their applications for the auction, which will start on December 20. 2024 can become the year of the 5G availability in the country.
5G auction and 4G spectrum renovations chronogram.
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Looking at individual brands, Samsung, TECNO and 
Management Strategy
H1 2023 Highlights:
