MVNO Evolution in Latin America Has Distinctive Flavor, Says Landmark Study

TTI Study Shows Lessons Latin American Operators Can Learn from Other Markets

“The emergence of Mobile Virtual Network Operators (MVNOs) in Latin America will be driven by telecom operators seeking to become full service providers (as COTAS did in Bolivia), and by corporations looking to increasing efficiency and minimizing costs by adopting mobile enterprise applications or M2M (man-to-machine, machine-to-man, or machine-to-machine) solutions,” according to a market research study released by Telecom Trends International (www.telecomtrends.net). Mobile network operators favor these MVNOs as they represent low risk to their operations, the study asserts.

The landmark study, “Mobile Virtual Network Operators: The Latin American Landscape,” is authored by Jose F. Otero, research director for Latin America with Telecom Trends International. The MVNO market is evolving in Latin America in ways which have no parallels, Mr. Otero said. Thus, non-telecom companies with established brands names will not drive the emergence of MVNOs in the region, he said.

Replete with examples from other markets, the study examines the applicability of other MVNO models to Latin America . It argues that Latin America ’s business characteristics force the “Latinization” of the current MVNO models being implemented in other regions of the world.

MVNOs are attractive for companies lacking RF spectrum license while presenting a compelling proposition for mobile operators, providing incremental revenue by maximizing RF spectrum capacity and increasing the attractiveness of the service value-chain.

Nevertheless, the Latin American mobile landscape presents many of the maladies affecting the Western European mobile market, such as low ARPU, increasingly saturated markets, and regulatory constraints. In addition, the Latin American region has its own set of problems, such as income disparities, economic slowdown, and lack of spectrum capacity. These factors will limit the number of viable brand-based MVNOs, as the potential addressable market may not justify the investments.

The study is a “required reading” for anyone with an interest in the Latin American marketplace. Analyzing the three phases of MVNO evolution in the region, the study discusses the role of mobile virtual network enablers (MVNEs) and M2M solutions in the proliferation of MVNOs in the region.

To set up an interview with Mr. Jose F. Otero, or to order the study, please call Telecom Trends International at (703) 237-4822 or send an e-mail to njaffery@telecomtrends.net.

About Telecom Trends International
Telecom Trends International (TTI) is a consulting and market research company that offers expert advice on emerging telecommunications developments. TTI conducts leading-edge research on trends and developments in the telecommunications marketplace, and disseminates that research through published reports, custom projects, briefings, and advisory services. The company performs market analysis, technology assessment, strategic planning and due diligence. TTI focuses on three core areas: wireless networks, wireline networks and the Internet. To learn more about Telecom Trends International, you may go to the website, www.telecomtrends.net.