Rapid growth heralds a bright future
For almost 20 years, the Latin American telecoms sector has undergone a transformation that is making it one of the most watched markets in the industry today. Fuelled by government privatisations and liberalisations throughout the region in the 1990s, the telecoms sector has been experiencing a growth spurt that just won’t stop. The opportunities are attracting competition and investment not only from within the region, but also from operators abroad.
Market profile: Brazil
The political and economic stability in Brazil over the last few years has been critical in the growth of the telecom market. The increased purchasing power of the poorer classes of the population has significantly changed Brazilian consumption standards—both qualitatively and quantitatively—and has positively affected the industry. The National Broadband Plan, MVNO regulation, and new laws for cable TV provision are some of the recent changes that will bring even more opportunity and growth to this exciting market.
Market profile: Chile
Despite the economic downturn and an earthquake in early 2010, the telecoms sector is performing better than are other sectors of the Chilean economy. The prepaid mobile sector is expanding, and more-positive government policies are encouraging investment in communication services and infrastructure. Although sector growth in Chile does face some hurdles, opportunities ranging from developing mobile apps in Spanish to outsourcing and sharing network infrastructure far outweigh the risks.
Market profile: Mexico
Currently, the telecom market in Mexico is highly agitated. Competition among major players has increased, and some competitors have come together with the objective of opening competition in the sector. Mexico is highly urbanised, and its young, tech-savvy customers are stimulating greater demand for the latest products and services. With regulatory changes and government plans to help stimulate usage and penetration on the horizon, opportunities await operators in fixed and mobile broadband, bundling and cable TV services.