Technology | Media | Telecommunications

Tuesday, June 28, 2011

Latin America is the Rising Star of Mobile Broadband

Latin America outperformed other regions of the world in mobile revenue growth for the period between the first quarter of 2010 to 1Q 2011, according to the latest market study by ABI Research.

In terms of total aggregate service revenue, Latin America grew at 17 percent -- while in comparison North America achieved just 8.9 percent growth.

The primary ingredient in the region's revenue upside is largely attributable to increased mobile phone service subscriptions and average revenue per users (ARPU).

Latin America witnessed an 11.9 percent increase in mobile service subscribers while attaining a 5.9 percent increase in ARPU -- holding 2nd in position behind Eastern Europe, for the same period.

Most region's ARPU declined while North America and Western Europe only had meager gains.

"Contrary to popular belief, Latin America is the rising star of the telecom market" says ABI research associate Lim Shiyang. "With increasing affluence in South America, subscribers are becoming willing to pay more for better value added services."

Meanwhile, revenues from mobile broadband services have become the new engines of growth for telecommunications operators. While the global average growth rate for data service revenues during the period 1Q 2010 to 1Q 2011 increased by 20.3 percent, Latin America took the lead with a 40.3 percent increase.

The increased data consumption is driven by increased smartphone adoption as can be seen from the amazing 153 percent increase in smartphone shipments in 2010.

"The high growth rates attained through the widespread adoption of mobility into the lifestyles of consumers in Latin America show that people are hungry for these types of mobile services and are willing to spend." says ABI mobile services practice director Neil Strother.