Mobile Uruguayan History Overview

Telecom landscape in Uruguay is changing, or is pushed to change, while new technologies are being introduced and government policies are being drawn. Uruguay is a South American country in which fixed line telephony still remains as a state monopoly, and the state operator (Antel) keeps its strengths in almost every sector of telecommunications market. But today, mobile market has three operators in competition: Ancel, the state operator; CTI Móvil (América Móvil) and Movistar (Telefónica).

However, it was not the state operator, but Movicom, who started developing the mobile phone Uruguayan market at the beginning of the nineties. Movicom started offering mobile phone services in Uruguay in the 800 Mhz portion of the spectrum, as well as USA and most of Latin America countries. To tell the truth, Movicom hired the 800 Mhz portion of the spectrum to Antel, the state telecom operator, so it can be said that for a long time Movicom and the telecom state operator had been like partners.

Having a mobile phone, at that early times, was too expensive and no one but very few people had one: only 0,1% of the Uruguayan population had a mobile phone in 1992. Therefore, owning a mobile phone was clearly a high status indicator. Moreover, it took six years more reaching 12% of the population.

Actually, Movicom had been the only player on mobile phone services until 1994, when Antel -through its mobile enterprise Ancel- started offering mobile phone services. One year later, in 1995, the Party Call Pays system was introduced and the number of subscribers increased, and kept increasing reaching 6% of the population in 1998. Then, at the end of 1998, in November, the Prepaid Card System had been implemented and, as a consequence, the total mobile users almost doubled (source: Fitch IBCA).

While 21 century started, the changes in policies, technologies and its adoption, increased: Movicom introduced CDMA technology in spectrum 1900; and then in 2001 the regulator Ursec was created. At the same time, the broadband internet market was opened and cybercafés started to expand all over urban areas giving internet access mainly by ADSL.

Second generation of mobile telephony arrived to Uruguay in 2002, with the first local auction for spectrum allocation. During the same year, long distance telephony market was open, and local operators started talking about WAP and SMS. In 2003, Ancel introduced GSM services and people started texting. One year later, a new player got into the scenario using GSM: América Móvil with the local brand CTI Móvil.

SMS adoption increased in 2005 and its uses rocketed in 2006, after December 2005 while interconnection among mobile operators was established. Mobile market finally got its own shape, with GSM technology available in more than 80% of the market, SMS as the main use of data mobile traffic, reaching in average, 130 Short messages per user per month.

While SMS uses expanded among population, new mobile devices where introduced in the market (Blackberry) and operators tested 3G technologies. Meanwhile, MMS remained restricted to the few mobile phone devices with MMS capabilities available in Uruguay during 2006, as well as internet access through GPRS/EDGE.

Nowadays, mobile internet and broadband access are on the air. The Wireless Broadband Data services is expected to develop after 2,5-2,5 Mhz portion of spectrum 2007 is assigned by Ursec. At the same time, operators are introducing mobile internet services. Which technologies and which services would succeed is still a question that would depend on policies decisions (for, instance towards multiple players in Uruguayan market), operators plans and last, but not least, users adoption of technologies and services.

(written in June, 2007, by Soledad Caballero)

Telecom landscape in Uruguay is changing, or is pushed to change, while new technologies are being introduced and government policies are being drawn. Uruguay is a South American country in which fixed line telephony still remains as a state monopoly, and the state operator (Antel) keeps its strengths in almost every sector of telecommunications market. But today, mobile market has three operators in competition: Ancel, the state operator; CTI Móvil (América Móvil) and Movistar (Telefónica).

However, it was not the state operator, but Movicom, who started developing the mobile phone Uruguayan market at the beginning of the nineties. Movicom started offering mobile phone services in Uruguay in the 800 Mhz portion of the spectrum, as well as USA and most of Latin America countries. To tell the truth, Movicom hired the 800 Mhz portion of the spectrum to Antel, the state telecom operator, so it can be said that for a long time Movicom and the telecom state operator had been like partners.

Having a mobile phone, at that early times, was too expensive and no one but very few people had one: only 0,1% of the Uruguayan population had a mobile phone in 1992. Therefore, owning a mobile phone was clearly a high status indicator. Moreover, it took six years more reaching 12% of the population.

Actually, Movicom had been the only player on mobile phone services until 1994, when Antel -through its mobile enterprise Ancel- started offering mobile phone services. One year later, in 1995, the Party Call Pays system was introduced and the number of subscribers increased, and kept increasing reaching 6% of the population in 1998. Then, at the end of 1998, in November, the Prepaid Card System had been implemented and, as a consequence, the total mobile users almost doubled (source: Fitch IBCA).

While 21 century started, the changes in policies, technologies and its adoption, increased: Movicom introduced CDMA technology in spectrum 1900; and then in 2001 the regulator Ursec was created. At the same time, the broadband internet market was opened and cybercafés started to expand all over urban areas giving internet access mainly by ADSL.

Second generation of mobile telephony arrived to Uruguay in 2002, with the first local auction for spectrum allocation. During the same year, long distance telephony market was open, and local operators started talking about WAP and SMS. In 2003, Ancel introduced GSM services and people started texting. One year later, a new player got into the scenario using GSM: América Móvil with the local brand CTI Móvil.

SMS adoption increased in 2005 and its uses rocketed in 2006, after December 2005 while interconnection among mobile operators was established. Mobile market finally got its own shape, with GSM technology available in more than 80% of the market, SMS as the main use of data mobile traffic, reaching in average, 130 Short messages per user per month.

While SMS uses expanded among population, new mobile devices where introduced in the market (Blackberry) and operators tested 3G technologies. Meanwhile, MMS remained restricted to the few mobile phone devices with MMS capabilities available in Uruguay during 2006, as well as internet access through GPRS/EDGE.

Nowadays, mobile internet and broadband access are on the air. The Wireless Broadband Data services is expected to develop after 2,5-2,5 Mhz portion of spectrum 2007 is assigned by Ursec. At the same time, operators are introducing mobile internet services. Which technologies and which services would succeed is still a question that would depend on policies decisions (for, instance towards multiple players in Uruguayan market), operators plans and last, but not least, users adoption of technologies and services.

(written in June, 2007, by Soledad Caballero)