3G adoption will have significant impact on fixed Internet in Latin America

 

With 3G data card access in Latin America expanding at a
rapid rate of 33.8 percent CAGR from 2010 to 2015, the 3G adoption will have
significant impact on fixed Internet business. It is important for fixed and
mobile operators to know how this expansion can affect other services,
according to Pyramid Research.

 

Latin America is taking the leadership in mobile
broadband adoption, and the impact will be as hard to predict as it has been
when trying to forecast uptake across other technologies in other regions,”
said Vinicius Caetano, senior analyst at Pyramid Research.

 

Pyramid expects mobile broadband connections in the
region (excluding smartphone connections) to reach 63.1 million subscriptions
in 2015, up from 14.7 million in 2010,” Caetano added.

 

Mobile operators are betting on their ability to cover
larger areas, with faster deployments and at a lower cost. The resultant
offering is more affordable and economically viable in underserved areas. A
quick deployment in those areas could result in addressing that entire
broadband market for a few years with little to no competition. They will not,
however, be able to compete on speed and reliability, where fixed connections
still hold the advantage.

 

3G will have a significant impact on how fixed Internet
will develop in Latin America, since many users will skip fixed technology
adoption.

 

In addressing the threat from mobile services, fixed
operators are prompted to use all their service differentiation possibilities –
including pay-TV and high-speed Internet, including FTTx – to prevent
fixed-mobile migration. Meanwhile, it is important for fixed companies to focus
on subscription revenue, not on revenue per use.

 

 

As far as the services mentioned in this study are
concerned, fixed operators will have to go the extra mile and appeal to their
service differentiation to attract new clients and prevent and/or slow down the
fixed-mobile migration movement. Those operators that are able to differentiate
through competitive advantages and enhance their value proposition will face a
promising future, both from the fixed and the mobile technologies.

 

By TelecomLead.com Team
editor@telecomlead.com