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3G Adoption Will Have a Significant Impact on Fixed Internet in Latin America

15 июня 2011

­With 3G data card access in Latin America expanding at a rapid rate of 33.8 percent CAGR from 2010 to 2015, it is important for fixed and mobile operators to know how this expansion can affect other services, according to a new report from Pyramid Research.

"Latin America is taking the leadership in mobile broadband adoption, and the impact will be as hard to predict as it has been when trying to forecast uptake across other technologies in other regions," says Vinicius Caetano, Senior Analyst at Pyramid Research. "Pyramid expects mobile broadband connections in the region (excluding smartphone connections) to reach 63.1 million subscriptions in 2015, up from 14.7 million in 2010," he indicates.

"Mobile operators are betting on their ability to cover larger areas, with faster deployments and at a lower cost. The resultant offering is more affordable and economically viable in underserved areas," says Caetano. A quick deployment in those areas could result in addressing that entire broadband market for a few years with little to no competition. "They will not, however, be able to compete on speed and reliability, where fixed connections still hold the advantage," he adds.

3G will have a significant impact on how fixed Internet will develop in Latin America, since many users will skip fixed technology adoption. "In addressing the threat from mobile services, fixed operators are prompted to use all their service differentiation possibilities - including pay-TV and high-speed Internet, including FTTx - to prevent fixed-mobile migration," says Caetano. "Meanwhile, it is important for fixed companies to focus on subscription revenue, not on revenue per use," he notes.

As far as the services mentioned in this study are concerned, fixed operators will have to go the extra mile and appeal to their service differentiation to attract new clients and prevent and/or slow down the fixed-mobile migration movement. "Those operators that are able to differentiate through competitive advantages and enhance their value proposition will face a promising future, both from the fixed and the mobile technologies," indicates Caetano.

Источник: Cellular news

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