Skip to main content

Latin America has Gained Mobile Data Subs

According to Pyramid Research, in 2005 mobile data users in Latin America accounted for 19 percent of the mobile subscriber base, which is reasonable when compared to the global average of 23 percent.

What distinguishes Latin America from other regions is the low percentage of revenues generated from mobile data usage; in Western Europe they generate 16 percent of total mobile revenues while in Latin America they represent only 9 percent. Still, this is impressive when we consider that wireless data revenues are less than 11 percent of all wireless service revenues within the U.S. market (according to the CTIA).

While greater usage of mobile data applications is a developing trend in the region, users still prefer lower-end, cheaper services, such as SMS. SMS undeniably controls the mobile data market in Latin America; in 2005 SMS accounted for 79 percent of total mobile data revenues ($2.5 billion).

However, coupled with development of mobile technology and the availability of more advanced handsets, Latin American operators are beginning to aggressively develop and promote non-SMS mobile data to increase penetration within the region.

With operations in fourteen Latin American countries and a subscriber base of 100 million, America Móvil is the example for other players in the Latin American mobile market; what they do to advance non-SMS mobile data will dictate how smaller operators approach the same task.

Pyramid examined America Móvil’s major subsidiaries in the region, and have concluded that since a clear majority of America Móvil subscriptions are prepaid users (generally dominated by youth and customers with varied income), America Móvil has focused its non-SMS platforms toward appealing to this mass market.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ