MVNOs to take off in Latin America as mobile markets mature
Mobile Virtual Network Operators (MVNO) are set to take off in Latin America as mobile markets mature, new regulations come into force and more network operators open to MVNOs to fuel growth. “MVNO subscriptions in Latin America will grow at a CAGR of 28% to 6.6 million by 2013,” says Júlio Püschel, senior analyst and head of mobile operator strategy at Informa Telecoms & Media.
Püschel is presenting Informa Telecoms & Media’s latest research on MVNOs at Informa’s MVNO Forum 2010, which is being held in SãoPaulo, Brazil on May 26. “The MVNO market is at an early stage in Latin America, with only around 20 active MVNOs in the region, out of 550 MVNOs or resellers worldwide,” Püschel says.”However mobile growth is slowing in Latin America, with mobile penetration rates already above 100% in Argentina, Chile, Uruguay and Venezuela, and at close to 90% in Brazil. “Forward-looking operators now see MVNOs as a good opportunity to grow subscriptions and revenues in new market segments.”
The MVNO market is a particularly hot topic in Brazil, where regulator ANATEL plans to launch new MVNO regulations this year. “This is an important step in Latin America’s largest mobile telecoms market,” Püschel says. “The regulation will open the door to MVNOs in Brazil, which will force all operators to review their MVNO strategies and plans. Some operators are reluctant to open to what they consider new competitors, but others are embracing MVNOs as a growth opportunity. Our research on the global MVNO market shows that operators that open to MVNOs will be the winners.”
Püschel will provide an overview of the MVNO market in Latin America and globally. “Latin America represented a small share of the world’s 104 million MVNO subscriptions in 2009, but will play a bigger role going forward,” notes Püschel. “The MVNO market is already a reality in Latin America, with MVNOs including Fecosur in Argentina, Cablevision and Maxcable in Mexico, and Telefonica del Sur in Chile. But the number of MVNO operators and subscriptions is set to jump as mobile markets mature and new MVNO regulations come into force,” Püschel says. “Mobile network operators in Latin America need to develop the right wholesale strategies now or risk losing subscriptions and revenues to competitors.”
