3G market challenges and opportunities in Latin America

Telecom Lead America: The size of 3G market in Latin America will grow to $112.97 billion in 2017 from $79.56 billion in 2011.

Growing importance of mobile broadband and bundled services will propel the market to ensure 6 percent annual growth during the period, according to Frost & Sullivan.

Recently, IDC said in coming quarters, affordable 3G data plans will bolster the 3G adoption rate, thus drive smartphone uptake in the Indian market. IDC report said that high-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share.

According to a report from Beijing-based research company Analysys International, the penetration rate of 3G in China could be more than 20 percent by the end of the year.

Frost & Sullivan said the coverage and quality of mobile broadband services, combined with the high penetration of mobile devices, have driven the telecom operators in Latin America to offer services of high added value. To meet the demand for data traffic generated by mobile devices, telecom operators are increasing investments in the expansion of 3G networks.

The consolidation of groups of Telecommunications in Brazil should change the competitive dynamics of the domestic market. Moreover, intensifying competition expands the proliferation of services to offer competitive prices.                       

The favorable economic situation and investment in bundled services (multiple-play bundles), and the expansion of the 3G network, have strongly boosted the Brazilian telecommunications industry.

According to Frost & Sullivan, in 2010 the revenue of the Brazilian telecommunications market will reach $97.64 billion in 2016 from $66.15 billion in 2011.

Frost & Sullivan said the popularity of smartphones and collaboration tools in the industry will stimulate expansion of mobile financial services. Scope and sophistication of mobile financial services will expand over the next five years in Europe.

Frost & Sullivan predicts high growth in the number of users of mobile banking in Europe in 6 years, and expects values transacted in mobile payment transactions will reach 72.33 billion euros in 2018.

“In 2011, smartphone sales represented more than 50 percent of total mobile phone sales in the Nordic countries and Western Europe, and the countries of Central and Eastern Europe are rapidly approaching,” said Mario Fernandez, a market analyst at Frost & Sullivan.

editor@telecomlead.com

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