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Wireless Penetration in Latin America
by WDN Staff
Are you looking for an audience? If so, you might consider targeting the Latin American (LA) marketplace.
In Mexico, the entry of PCS operators and multi-national wireless carriers over the past couple of years has
led to some fierce competition. According to a recent study by the Yankee Group, the Mexican wireless mobile
market has realized record growth, swelling by 87% in 2000 to more than 14 million subscribers. According to
their figures, The Yankee Group projects the subscriber base to swell to more than 35 million by 2006.
When considering the Latin American mobile data market, there currently exists a trend where revenues per user
are on the slide due to increased competition. Figures from a recent IDC study predict that by 2004 the market
will be estimated at more than US $42 billion from a subscriber base exceeding 143 million cellular subscribers
and 71 million mobile data users.
But hold on, things aren’t entirely rosy for all of Latin America. Central America, comprised of 7 small
countries, lags behind the rest of LA primarily due to the relatively low incomes and a lack of demand for
data services. On the up-side, wireless services have taken off recently, with the major carriers being
BellSouth International, Millicom International Cellular, and Telefonica Internacional. In a recent report
by Global Wireless, none of the 3 major carriers has plans for mobile data services there - not in the near
future anyway. If you were to look for explanations for slow growth in wireless penetration in this market,
the reasons would be:
- small population base
- relatively low income
- little competition
Elsewhere in Latin America
In Brazil, Telefonica & Portugal Telecom have combined their mobile ventures in a US $10 billion deal. Belize is
now served by a single cellular operator, Belize Tellecom. In Chile, Nextel has invested US $30 million to open a
new office. Finally, in Venezuella, Telcel & Telcom Italia have grabbed licenses in the recently held wireless
auction.
For more information about the emerging Latin American market:
The Yankee Group - www.yankeegroup.com
IDC - www.idc.com
Do you have news or information about the mobile wireless market in Latin America that WDN should know about?
Send details to editors@wirelessdevnet.com
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