Telecom Lead India: Latin American mobile services markets revenue will reach $112.45 billion in 2017 from more than $86.32 billion in 2012. 3G and 4G will be the growth drivers.
Frost & Sullivan says increasing investments in 3G and 4G expansion, along with mobile operators’ focus on quality of services, have fueled the growth of the Latin American mobile services market.
The proliferation of smartphones, tablets and notebooks has popularized data and value-added services, and added to market revenues in the region, according to Frost & Sullivan.
The production of smart devices locally has decreased their costs, especially in Brazil, thereby fuelling the use of mobile services.
Frost & Sullivan ICT Research Analyst Georgia Jordan says subsidized prices and installment schemes also facilitate the purchase of these devices in Latin America.
The analyst noted that pre-paid and hybrid plans improve the affordability of these services to the emerging middle class, and consequently, increase service providers’ margins in the region.
Interconnection tariffs represent close to 25 percent of company revenue, and these cuts force carriers to find new sources of income. Low spectrum caps and delays in spectrum auctions further restrain market development.
There are several challenges. Argentina, Brazil, Chile and Venezuela have achieved 100 percent penetration, while Colombia and Mexico are close behind. The rise in machine-to-machine and mobile broadband communication, as well as the growing use of multiple SIM cards, will sustain the market.
Encouraging the use of post-paid lines through special tariff promotions, and providing bundled packages with mobile data services will ensure steady adoption.
picture credit: edition.cnn.com
