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Cambridge, Massachusetts - July 22, 2010 - In Latin America, mobile broadband has shown significant growth in the last few years and is expected to keep growing at a fast pace, particularly prepaid mobile Internet. However, Mobile operators need to expand their target market in order to generate more service sales and, therefore, revenues, according to a new report from Pyramid Research (www.pyr.com).
Prepaid Mobile Broadband Presents a Big Opportunity for Latin American Operators analyzes the opportunity that mobile operators have to expand their target market to include the prepaid market to generate more revenue. It also examines how the low penetration rate of fixed and satellite broadband, due to the high costs and poor services from lack of availability in the region, creates an opening for 3G Internet to thrive. Download an excerpt here. Purchase the report here.
Pyramid expects prepaid mobile Internet service to take off and attract a significant number of users in Latin America as it “will be used not only by customers without fixed Internet in their home or office, but it will also attract a high number of occasional users, especially those who do not require full-time mobility for their connections,” says Vinicius Caetano, Senior Analyst at Pyramid, and author of this report. “This service will break the telecom industry myth that the prepaid service is not profitable,” adds Caetano.
“The traditional mobile model, where operators mainly offer valued-added services to postpaid customers, neglects the mid-to-low-end of the population in emerging markets in its early stages,” indicates Caetano. Up to half of the consumer spending in these countries is omitted due to the lower ARPU among low-end and prepaid customers. “In order to better address this overlooked market, operators will have to focus on services based on characteristics that are compatible with the majority of the population, including the prepaid model,” recommends Caetano. Pyramid believes the business case for mobile data will follow the same concept as for voice: make it affordable, easy to use and flexible.
Prepaid Mobile Broadband Presents a Big Opportunity for Latin American Operators is part of Pyramid Research's Latin America Telecom Insider report series. Download an excerpt of this report here. This report can be purchased online here contacting info@pyr.com.
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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
Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and event focused company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technological and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, and TelcoTV Asia, Ethernet Expo New York and Ethernet Europe, and The Tower Summit @ CTIA, as well as focused one-day events tailored for cable, mobile, and wireline executives in the US, Europe, India, and China. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
About UBM TechWeb
UBM TechWeb (http://www.ubmtechweb.com/), the global leader in technology media and business information, enables people and organizations to harness the transformative power of technology. Through its core businesses - media solutions, marketing services, and professional information - UBM TechWeb produces the most respected and consumed brands, applications, and services in the technology market. More than 14.5 million business and technology professionals (CIOs, IT and IT Support managers, Web and digital professionals, software and game developers, government decision makers, telecom providers and business executives) actively participate in UBM TechWeb’s communities. UBM TechWeb brands include: global face-to-face events such as Interop, Game Developers Conference (GDC), Web 2.0, Black Hat, and VoiceCon; large-scale online networks such as InformationWeek, Light Reading, and Gamasutra; research, training, and certification services, including HDI, Pyramid Research, and InformationWeek Analytics; and market-leading magazines such as InformationWeek and Wall Street & Technology. UBM TechWeb is part of UBM, a global provider of media and information services for professional B2B communities and markets.
Press contact:
Jennifer Baker
+1 617 871-1910
jbaker@pyr.com
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