In November 1999, NuevaTel was awarded a nationwide PCS license in Bolivia. A Western Wireless International-led consortium commenced construction on a nationwide PCS network soon after, and in November 2000, Nuevatel launched commercial service under the brand name Viva.
The equity stake in NuevaTel originally owned by Western Wireless
International was acquired with other Western Wireless operations by
Alltel in 2005, and subsequently purchased by Trilogy after its
formation. The remaining 28.5% of Nuevatel of is owned by
Cooperative Mixta de Telecomunicaciones Cochabamba (“Comteco”),
the third largest telecommunications cooperative in Bolivia.
Bolivia
Fast Facts:
Population:
9.1 million
Languages: Spanish
Area:
1,098,580 sq km
GDP per Capita (PPP):
$4,400
Currency: 1 boliviano ($B) =
100 centavos
Teledensity: 7 telephone
lines per 100 inhabitants
Wireless
Operators: 3
Source: CIA World Factbook, World Bank, Trilogy Internal Reports
Market
overview -- Bolivia lies in the central region of South America.
It is bordered by Brazil, Peru, Chile, Paraguay and Argentina.
Bolivia has a population of 9.1 million with land area of
approximately 1.1 million square kilometers. Although one of the
poorest and least developed countries in Latin America, Bolivia is
rich in natural resources, including hydrocarbons, iron and
magnesium. The country has historically relied on outside investment
to capitalize on these resources.
Like many nations in the developing world, wireless penetration in Bolivia remains low at 40%. Bolivia’s wireline penetration of 7% is one of the lowest in Latin America and the Caribbean. Wireline network investment is concentrated in the capital city of La Paz and a few other metropolitan areas, leaving large portions of the country underserved. Wireless penetration grew by 11% from 2006 to 2007. NuevaTel believes there is significant room for growth in Bolivia, which is validated by continued annual market expansion.
Service offerings – NuevaTel provides voice and data services, including an array of services delivered via a short message service-based platform, to its customers in Bolivia over its GSM network. It also maintains international roaming agreements with over 90 operators in 56 countries worldwide. NuevaTel offers its mobile communications services through both postpaid and prepaid payment plans, although the majority of Nuevatel’s subscribers pay a prepaid basis. This payment method is consistent with wireless service customers throughout Latin America.
In addition to basic voice and data services, NuevaTel also offers international long distance termination and origination, as well as public telephony services. NuevaTel’s public telephone service utilizes more than 40,000 wireless pay telephones located in stores and call centers that are owned and managed by exclusive NuevaTel resellers. Called “Puntos Vivas”, the public telephony points of presence have transformed the communications market, providing Bolivians highly affordable communications throughout the Nuevatel coverage area. Equally importantly, the puntos are a source of employment, directly and indirectly, for nearly 14,000 Bolivian families.
NuevaTel operates a GSM and GPRS-EDGE network throughout Bolivia, covering Bolivia’s main cities, towns and roads. NuevaTel has a high quality network as demonstrated by its dropped calls rates, blocked calls rates and a call success rates in excess of international quality standards.
In May of 2008, Nuevatel added the provision of wireless broadband services via WiMAX to its portfolio of service offerings. Today high speed internet penetration in Bolivia is under 0.5%; by installing WiMAX in its Puntos Vivas, Nuevatel intends to diminish the digital divide that is so prevalent in Latin America and other parts of the world by providing internet access to millions of people who have never before been exposed to the Web.
Visit NuevaTel’s website at http://www.viva-gsm.com
