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Latin American Operators Question Vendor Readiness for Managed Services says Pyramid ResearchCambridge, MA, January 24, 2007—Growing too much or too fast was cited as a key challenge by mobile operators in Latin America, according to Pyramid Research’s recent report, Managed Services in Latin America: What It Will Take For MNOs to Make the Jump.
IPTV is About Broadband, Not TV says Pyramid Research
Successful IPTV is more about selling broadband than about selling television, argues Pyramid Research’s report “Transforming Telcos With IPTV.” Telcos are leaders in the broadband space, but remain novices in the pay-TV market. It is arguably more profitable for telcos to maintain their position in the broadband segment than to become a leader in the pay-TV space, as TV is only one of the many revenue-generating applications that can be carried over broadband.
Emerging Markets Want Mobile Data But May Not Want to Pay says Pyramid Research
According to a recent study of wireless subscribers across the BRIC countries (Brazil, Russia, India, China), Brazilians showed the most interest in using wireless data services. The study asked 2500 mobile phone users under which of the following circumstances they would use data services like wireless internet and mobile TV – if it were free, if the price were right or not interested at all. More Brazilians indicated that they would consume mobile data than respondents from any other country.
Wireless Operators in BRIC Countries Not Doing Enough to Sell Mobile Data says Pyramid Research Study
Pyramid Research estimates that 42% of the roughly 1.05bn new mobile subscribers over the next five years will come from the BRIC countries – Brazil, Russia, India and China. According to a recent study, 20% to 50% of mobile subscribers surveyed in BRIC countries said they had not received much information from their service provider about the types of mobile data services available to them or how to use them. In India and China, roughly 20% of the wireless subscribers surveyed reported they hadn’t been educated by their carrier about mobile data services, while in Brazil and Russia, nearly half felt they hadn’t received much information about available services or how to use them.
IPTV Up Against Tough Competition, But Triple Play Will be Key for Telcos says Pyramid Research
Telcos may be counting on IPTV to revitalize their businesses, but the competition they will face in the pay TV market will be expensive, relentless and possibly damaging. Cable and direct broadcast satellite (DBS) providers have been battling it out for PayTV subscribers and both are readying to take on IPTV.
According to Pyramid Research Study, India Mobile Gaming Market Is On Track to Expand 700% by 2010
According to a recent Pyramid Research survey of mobile phone users across the BRIC (Brazil, Russia, India and China) countries and the U.K., India ranked as the top mobile game market. Of the 355 respondents in India that identified themselves as mobile data users, 32% said that they play mobile games monthly, exceeding the UK mark of 15%.
Trinidad & Tobago Braces for Intense Competition says Pyramid Research
The opening of Trinidad and Tobago’s telecommunications market represents one of the last Caribbean markets to open its sector to competition, leaving the Bahamas as the only other closed market in the region. The entrance of Digicel and a third mobile operator, Laqtel, is likely to take significant market share away from the incumbent, TTST. Trinidad & Tobago is shaping up to be the next battleground between Irish-owned Digicel and Cable & Wireless, which owns a majority stake in the local incumbent, TSTT.
Pyramid Research Expands Asia-Pacific Presence
Pyramid Research, a global telecoms and media consultancy, has expanded their Hong Kong operations by adding key analysts to increase their presence throughout the region. With the recent expansion, Pyramid Research has also relocated to new, larger office in the central business district.
Pyramid Research Strengthens Consulting Practices and Global Presence
Pyramid Research is proud to announce Ken Figueredo as its new Managing Director of Consulting.
Pyramid Research Assesses the “BRIC” Opportunity
1.37 billion new subscribers will be added to global mobile networks worldwide between 2005 and 2010 according to Pyramid Research’s latest mobile forecasts. Brazil, Russia, India and China, collectively know as the ‘BRIC’ countries, will have an estimated 645m new subscribers – 42% of the world total.
Making Mobile Music Work will be a Hard Task says Pyramid Research
The large number of stakeholders in the mobile music value chain is the key obstacle in developing a workable business model. “The addition of mobile operators to the downloadable music value-chain adds a layer of complexity; operators have to be able to successfully navigate this environment or they stand to lose out completely,” comments Pyramid Research senior analyst Nick Holland.
Mobile Music Best Practices Assessed by Pyramid Research
During their first quarter of offering mobile music services, SK Telecom saw more than half a million mobile music subscriptions and KDDI’s 3G ARPUs increased by nearly 40% says a new Pyramid Research report.
Pyramid Research Analyzes China’s 3G License Scenarios
China’s pending 3G license auction continues to hold the mobile community in suspense. The new Pyramid Research report, “3G in China: What’s Next for 3G Licensing?” assesses the potential outcomes of the auction and tracks the market opportunity. The new report stipulates that the infrastructure opportunity will be $9bn for vendors in the 2006-2009 period with 2007 alone generating approximately $4bn, based on data from Pyramid Research forecasts. Additionally, 3G subscribers are expected to account for 15% of China’s mobile market by 2010.
Is Fixed-Mobile Convergence Finally Taking Off? Pyramid Research Assesses BT’s Fusion Service
British Telecom (BT) has finally announced its new consumer fixed-mobile convergent service, Fusion, formerly known as Bluephone. Fusion is the first fully convergent service on one device, with one bill and seamless handover between fixed and mobile networks. Pyramid Research views Fusion as a very basic starting point for the convergent services that are to come.
Mobile Infrastructure Spending: A $190bn Opportunity Between 2005 and 2009
Mobile carrier capital expenditures (CAPEX) on infrastructure will enter a progressive decline beginning in 2006 that will see infrastructure investments decrease from 47% of total operator CAPEX to 33% by 2009. While infrastructure spending will remain the largest slice of the CAPEX pie, Pyramid Research’s new report, “Mobile Operator CAPEX: Charting the Transformation of Mobile Carrier Spending,” examines how vendors must adapt their business models to address the evolving mobile operator expenditure patterns to capture new, non-infrastructure investment opportunities.
Fixed-Mobile Convergence Revenues Will Account for 6% of Traditional Communications Spend in 2009
Fixed-mobile convergence (FMC) revenues will reach $80bn in 2009, or 6% of total communications spend worldwide, according to a new Pyramid Research report. The report, “Fixed-Mobile Convergence: Creating Value with Successful Business Models,” credits converged service revenue growth to value-added services and the migration of digital content from broadcasting networks to new converged networks. Pyramid Research expects converged services adoption to accelerate only after 2007, as more consumers are migrated to convergent platforms.
The wave of mobile operator consolidation in North America will reduce infrastructure expenditures by $2.5bn during the 2005-2009 period according to the latest Pyramid Research forecasts. Through the combination of networks, the New Cingular will reduce CAPEX by $5bn over a five year period compared to AT&T and Cingular’s combined CAPEX projections compiled last year. Similarly, the merger of Canada’s Rogers and Microcell will result in a $170m decrease in equipment investment.
As developed markets worldwide are seeing increased MVNO competition – more than 40 existing and planned MVNOs are in the US alone – emerging markets are the next window of opportunity. The upcoming report from Pyramid Research, “MVNOs in Emerging Markets,” makes the case for MVNOs in developing markets like India, Nigeria and others.
WiMax will revolutionize the fixed wireless broadband (FWB) market as expected, but it will be primarily a solution for fixed carriers argues Pyramid Research’s new report, “Positioning WiMax: How WiMax Stands Up To DSL, Cable, Wi-Fi and 3G.” A survey from the report revealed that industry players expect WiMax to be deployed largely by fixed operators and ISPs to provide backhaul and high-speed internet access. Respondents are also optimistic about WiMax’s future potential as a mobile solution.
Fixed-mobile convergence and mobile VoIP will create substantial growth opportunities for mobile voice usage and revenues. Pyramid Research’s upcoming report, “The Future of Mobile Voice,” projects a $200bn opportunity for additional revenue through the migration of fixed-line traffic to mobile networks. This growth will not automatically go to mobile service providers as new IP technologies allow both mobile and fixed-line operators to compete for market share. To remain on top of mobile voice, mobile providers must rethink their approach to end-user services and networks.
According to a new report from Pyramid Research, Latin American operator revenues from mobile messaging will increase from US$1.3bn in 2004 to US$4.0bn in 2009, a compounded annual growth rate of 25%. According to “Mobile Messaging Trends in Latin America,” the opportunity extends also to content providers and vendors as increased usage of basic services drives demand for more sophisticated applications.
According to the recent report from Pyramid Research, “Seizing the SME Opportunity in Latin America,” 30% of Latin American small and medium enterprises (SMEs) expect to increase spending in 2005, while 50% plan to keep similar spending levels as 2004. The willingness of SMEs to subscribe to new telecom services makes this a vibrant segment.
According to an upcoming report from Pyramid Research, “Demystifying Triple Play,” the business case for traditional triple play may not be as profitable as perceived. Nonetheless, it still presents an opportunity for telcos to increase overall revenue, brand awareness and market positioning.
Market acceptance of the mobile virtual network operator (MVNO) is at an all time high, but according to Pyramid Research’s new report “Next-Generation MVNOs,” market conditions for many aspiring mass-market MVNOs will get worse, not better. As mobile subscriber bases across developed regions reach saturation levels and price pressure on core voice and SMS services mounts, service revenue for many MVNOs will undoubtedly get squeezed. Unless many of the predominantly prepaid, consumer-oriented and voice-centric brands do not offset the declines with new value-added services, they will face a difficult road ahead.
The Mexican communications market is the most influential market in Latin America. The latest report from Pyramid Research, “Communications Markets in Mexico,” forecasts a 6% annual growth for fixed, mobile, pay TV and Internet service revenues in Mexico with the trend continuing through 2009.
Pyramid Research’s “Global Mobile CAPEX Trend Letter” predicts a 12% increase in mobile infrastructure spending in 2004 over last year. The recent wave of vendor profitability is fueled by traction of next generation network deployments, capacity needs resulting from increasing mobile subscribers and significant levels of GSM replacements. Pyramid Research expects a $39bn market in 2004.
Great hype surrounds the mobile virtual network operator (MVNO) business model. According to a new Pyramid Research report titled “MVNOs: Playing to Win,” MVNOs will constitute 20% of the 230 million mobile subscribers in the US by 2010. This vast market potential has not gone unnoticed with numerous entrants lining up and many more to come.
Few mobile operators in the world can match the earnings margins realized in the Middle East and North Africa (MENA) region. According to the new Pyramid Research report, “Middle East & North Africa Mobile Benchmarks”, profit margins for the region’s mobile operators average nearly 60%, with some reaching upwards of 80%. STC, the Saudi incumbent, boasts an EBITDA margin and volume twice those of Orange UK. According to Pyramid Research analyst Jonas Lindblad “revenue and EBITDA volumes will grow substantially given that a large number of operations are still in their cradle, including mobile start-ups in populous countries like Iran and Saudi Arabia”. By YE2008, Pyramid Research forecasts 100m mobile subscribers in the region, from the current 45m, with five mobile operators exceeding $1bn in revenue.
Findings from the new Pyramid Research report, Middle East & North Africa Mobile Benchmarks, indicate that the mobile market is operating at only 40% of its penetration potential in the Middle East and North Africa (MENA). The MENA region has 115m addressable subscribers and only 45m are current subscribers. This large spread emphasizes the tremendous pent up demand and the profitability potential that will be awarded to the mobile operators best suited to tackle this regions needs.
According to the new Pyramid Research report, Global Mobile CAPEX Handbook, infrastructure CAPEX continues to decline with forecasted 2004 spending reaching $33.5bn, down from a high of $38.5bn in 2001. Pyramid expects GSM spending to decline from $21.5bn in 2001 to just over $15bn in 2004 as operators shift their focus towards building out WCDMA networks.