Uruguay Telecom Market Size

Uruguay Telecom Market Analysis

The Uruguay Telecom Market size is estimated at USD 2.46 billion in 2024, and is expected to reach USD 2.53 billion by 2029, growing at a CAGR of 0.55% during the forecast period (2024-2029).

• In spite of having a well-established cable network in all mid- and large-size cities, the Uruguayan government historically prohibited cable companies from offering Internet access through their systems. As a result, Uruguay and Cuba were the only countries in the Americas that lacked this crucial aspect of the Internet access ecosystem. However, in June 2022, the Uruguayan government made a significant change by allowing selected cable providers to enter the market, thereby putting an end to Antel's monopoly on wired Internet services.
• Uruguay possesses a highly developed telecommunications market, boasting exceptional infrastructure and one of the most impressive rates of broadband penetration in Latin America. The prominent Internet Service Providers (ISPs) in Uruguay include ANTEL, Claro, Dedicado, and Movistar. Antel dominates the mobile market, followed by Telefónica's Movistar and América Móvil's Claro. All three operators offer mobile broadband services through their 3G and LTE networks. These operators have successfully achieved nationwide 3G coverage, resulting in a continuous increase in the number of mobile broadband subscribers. The ongoing advancements made by these vendors are anticipated to propel the growth of the market.
• According to the ITA, ANTEL, the largest telecommunications company in Uruguay, which is state-owned, plans to invest in infrastructure, technology, modernization systems, expansion of connectivity, implementation of 5G, and the development of new digital services. In 2021 and 2022, ANTEL invested USD 161 million, with 80% of the funds earmarked for expanding fiber optics infrastructure in rural areas. Furthermore, ANTEL's market share in mobile services increased as the company managed to attract customers from competitors for the fourth consecutive quarter. These significant developments by operators in the region are expected to enhance market potential.
• Fixed wireless services are predicted to increase in the region in the years ahead. The majority of Uruguay's land area is too distant from urban areas to have access to wired Internet. Fixed wireless ISPs offer a solution for customers in these rural and low-density suburban areas. Additionally, wireless Internet service has given urban Internet users some options in a country where private companies are not permitted to offer alternatives to the state-operated ADSL service, such as cable TV Internet or fiber to the home.
• Uruguay stands out as one of the limited number of nations worldwide that lacks broadband access through cable modems. Despite technologically advanced cable networks and the widespread availability of digital cable TV, data transmission over pay TV networks is prohibited by telecom legislation. Nevertheless, the government has expressed its intention to amend the law, allowing pay TV providers to offer internet and telephony packages through their own networks. These noteworthy developments are anticipated to foster market growth.
• The rise of modern technologies has brought about a digital transformation, resulting in a significant increase in the number of internet users. The affordability of smartphones and the introduction of 5G-enabled devices have played a crucial role in driving the demand for mobile Internet connections. Uruguay's telecommunications sector is particularly focused on the growing 5G market, expecting a boost in local service revenue as more users take advantage of faster download speeds to access content. Moreover, the wider availability of high-speed Internet has also stimulated the creation of innovative applications and services, contributing to the overall expansion of the market.