Spectrum Auctions in Latin America Will Trigger Massive Broadband Subscription
Growth, Pyramid Research Finds
CAMBRIDGE, Mass., Apr. 14 /PRNewswire-AsiaNet/ --
3G and WiMax spectrum auctions in Latin America will trigger massive
broadband subscription growth, from 9 percent at year-end 2008 to 70
percent at year-end 2014, according to a new report from Pyramid Research
(www.pyr.com), the telecom research arm of the Light Reading Communications
Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in
Latin America analyzes the impact of the upcoming spectrum auctions on the
competitive environment of markets in Latin America and the expansion of
broadband services in Latin America, identifying some of the opportunities
that will open for industry players and subscribers. The 15-page report
includes case studies of Chile, Brazil, and Mexico, examining each market in
more detail. Download an excerpt of this report here:
Fixed broadband penetration in Latin America, which stood at 5.0
percent at year-end 2008, is roughly 30 percent below the global average of
6.5 percent, while 3G mobile penetration, at 3.4 percent, also ranks well
below the global average of 7.8 percent, notes Jose Mario Lopez, Research
Manager at Pyramid Research and co-author of the report. "Understanding the
link between broadband adoption and economic development, governments
throughout Latin America have made broadband deployment a central theme of
their political agendas," he says. "Regulators now look to accelerate the
award of broadband spectrum, specifically WiMax and 3G, to close the
connectivity gap and inject additional competition into the market -- this
will, in turn, reduce prices, extend coverage to underserved areas, and make
more bandwidth capacity available for the introduction of robust Internet
applications," he adds.
Much of the spectrum that regulators have awarded has ended up in
the hands of the region's two main operators, Telmex and its international
spinoff Telmex International. In an attempt to encourage the entry of new
players in the market through upcoming 3G and WiMax auctions, regulators in
Venezuela, Chile, and Mexico are establishing strict limits on incumbents or
current frequency holders, encouraging participation by new market entrants.
"The impact of new players will come less from their direct
contribution to overall line buildouts but rather from the response that they
will elicit from existing, larger market players," says Lopez. "By
introducing services targeting new geographies and new customer segments, and
potentially stealing customers away from larger market players, new entrants
will force existing operators to lower prices to extend their network reach
and to innovate with new services and applications," he explains. The result
will be an expansion of Latin America's broadband subscriber base from 48
million at year-end 2008 to 426 million at year-end 2014, a compound annual
growth rate of 44 percent. Pyramid Research expects a full 87 percent of
broadband net additions to come from mobile platforms, either 3G or WiMax.
Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in
Latin America is part of Pyramid Research's Latin America Telecom Insider
report series. Telecom Insiders are packed with trend analysis, industry best
practices, market sizing and forecasting, competitor analysis, and case
studies, providing you information you can leverage to make better business
decisions.
Download an excerpt of this report here:
Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in
Latin America is priced at $595 and can be purchased online here:
contacting Jeff Claudino via email at claudino@pyr.com or telephone at
+1-619-229-9940.
About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media, and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries -
a distinction that has remained unmatched for more than 25 years. As the
telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's
most comprehensive market data, trusted research, and insightful technology
analysis.
About Light Reading
online media, research, and focused event company serving the $3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
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*13.3 million business decision-makers: based on number of monthly
connections
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Press contact:
Jennifer Baker
+1-617-871-1910
jbaker@pyr.com
SOURCE: Pyramid Research
CONTACT: Jennifer Baker of Pyramid Research
+1-617 871-1910
jbaker@pyr.com
(UBM)
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