Rising disposable incomes and sustained investment in mobile networks are driving significant growth in telecoms markets in Central and Latin America (CALA), according to a report by Analysys Mason.
According to the Analysys Mason report, service revenue will grow at a CAGR of 8% from USD131 billion (EUR93.9 billion) in 2009 to USD188 billion (EUR129 billion) in 2014. This is in stark contrast to the situation in the mature markets of North America, Western Europe and parts of the Asia-Pacific region, where operators struggle to achieve meaningful growth.
Roz Roseboro, principal analyst at Analysys Mason and lead author of the report, says, “Many economies in the region, especially Brazil, are growing rapidly, leading to greater ability to pay for telecoms services. Operators there continue to expand their 3G networks, supporting mobile data services that generate high revenue. Broadband penetration rates in CALA are unusually low, and competition between fixed and mobile operators for broadband subscribers will be intense.”
The report discusses the main trends that are shaping the CALA telecoms market, and provides subscriber and revenue forecasts and operators’ market shares. Key findings are:
- Mobile data revenue from handsets will grow more than twice as fast subscriber numbers, from USD4.5 billion (EUR3.2 billion) in 2009 to USD10.6 billion (EUR7.6 billion) in 2014. Revenue from mobile broadband will rise even faster, from USD1.4 billion (EUR1 billion) in 2009 to USD6.4 billion (EUR4.6 billion) in 2009.
- Operators in CALA face the same challenges as those in mature markets: to develop business models that allow them to capture more of the value of mobile data services.
- In markets approaching saturation, operators’ focus will shift from subscriber acquisition to revenue generation and subscriber retention.
- Operators must control their costs in order to be able to serve their demanding customers profitably, and at the same time generate enough revenue to fund future network expansion