4G in Latin America: Data-Hungry Apps and More Affordable Smartphones to Sustain Strong Growth Momentum

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"4G in Latin America: Data-Hungry Apps and More Affordable Smartphones to Sustain Strong Growth Momentum", a new Telecom Insider Report by GlobalData, provides an executive-level overview of 4G in Latin America, with forecasts of key indicators up to 2022. It delivers deep quantitative and qualitative insight into the growth of 4G in Latin America, assessing business models and value propositions from operators to foster 4G adoption, and the main drivers and challenges impacting 4G in the region.

A rapid transition to 4G mobile technology is happening in Latin America. 4G mobile subscriptions have more than trebled since 2015, advancing at a 79% CAGR to reach over 180m by year-end 2017. This is equivalent to 25% of the region’s total mobile subscriptions.

This transition to 4G is fueled by strong demand for mobile data usage and growing data consumption. Not only are more Latin Americans using mobile data services, they are also using more of it due to the growing popularity of social networking and data-hungry apps such as music and video streaming services.

The report is structured as follows –
– Section 1: Market Context. this section provides information regarding 4G definition and development in Latin America, growth of 4G adoption in the region, and mobile data evolution.
– Section 2: Main factors impacting 4G growth in Latin America. details the drivers and inhibitors impacting in 4G growth in Latin America, showcasing how operators are taking advantage of the drivers and overcoming the market challenges.
– Section 4: Case studies. We continue with a review of the strategies and 4G positioning a number of operators that are succeeding in the region.
– Section 5: Key findings and recommendations. We conclude the report with a set of key findings and recommendations for network operators, network vendors and regulators.

Scope

– The ongoing migration to 4G is being facilitated by smartphones, which for most Latin Americans are their prime web-access device due to convenience and higher affordability than computers.

– On the one hand, available spectrum is below industry needs, and that will become more of a problem as higher data consumption puts a bigger strain on radio networks.

– Within the region Uruguay has the highest 4G share of total subscriptions, a figure we expect to reach near 47% by the end of 2017. Regional economic leader Brazil follows in second place, with over 35% 4G share of total mobile subscriptions expected for 2017.

Reasons to Buy

– This Insider Report provides a five-year forecast of key mobile broadband metrics including 4G adoption and mobile data, developed using GlobalData’s rigorous bottom-up modeling methodologies, to enable executives to effectively position their companies for growth opportunities and emerging trends in demand for their products.

– A detailed analysis of the market shares of the operators in select countries, including market shares of mobile subscribers for the year 2017, helps executives examine the drivers behind market performance to understand best practices, formulate competitive strategies, assess evolving threats and make informed investments.

– Three case studies illustrate the business model and strategy of select operators in Latin America, this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.

– The report discusses concrete opportunities in the 4G market in Latin America, providing a number of actionable recommendations for operators, network vendors and regulators.

Alcatel OneTouch
+Movil
Antel
AT&T
Claro
CNT
China Unicom
Digitel
Ericsson
Entel Bolivia
Entel Chile
Facebook
Huawei
Instagram
Iusacell Kolbi
Motorola
Movistar
Netflix
Nextel
Oi
Orange
Personal
Phicom
Samsung
Snapchat
Spotify
Telcel
Telefonica
Tigo
TIM Brazil
Twitter
Uber
UNE
Viber
Vivo
S2Vox
WhatsApp

Table of Contents

Table of Contents

Table of contents 3

List of exhibits 5

Executive summary 7

Section 1: Market context 8

4G definition and development in Latin America 9

Growth of 4G adoption in Latin America 10

Mobile data evolution in Latin America 11

Relationship between 4G and mobile data revenue growth 12

Regional comparison of 4G and mobile data penetration 13

Section 2: Main factors impacting 4G growth in Latin America 14

4G segment growth drivers and inhibitors 15

Use of data intensive apps – driver 16

Smartphone affordability – driver 17

Value-added data plans and first-use promotions – driver 18

Affordability issues of low income population segments – inhibitor 19

Digital divide – inhibitor 20

Spectrum needs and non-technology neutral regulation – inhibitor 21

Section 3: Case studies 22

Case study: Uruguay 23

Case study: Antel in Uruguay 24

Case study: Brazil 26

Case study: TIM in Brazil 27

Case study: Mexico 29

Case study: AT&T in Mexico 30

Key Findings and Recommendations 32

Key Findings 33

Recommendations 34

Appendix 35

Acronyms and definitions 36

Companies mentioned 38

About the authors 39

Contact information 40

Table

List of Tables

Exhibit 1: Chronology of LTE and LTE-advanced network launches in Latin America – selected group of countries 9

Exhibit 2: Mobile subscriptions distribution by technology family – total Latin America and selected group of countries, 2017 vs 2022 10

Exhibit 3: Mobile data metrics in total Latin America and selected group of countries 11

Exhibit 4: Current 4G share of total subscriptions vs. 4G subscriptions and mobile data revenue growth – selected group of countries 12

Exhibit 5: Mobile data and 4G share of total subscriptions, mobile data average monthly revenue per data subscriber – regional comparison 13

Exhibit 6: Main factors affecting 4G segment growth in Latin America, 2017 15

Exhibit 7: Mobile data consumption in selected Latin American countries 16

Exhibit 8: Examples of mobile operator smartphone offerings using subsidies, August 2017 17

Exhibit 9: Examples of mobile operator value added plans, August 2017 18

Exhibit 10: Examples of mobile operator low-cost plans, August 2017 19

Exhibit 11: ICT connectivity plans in the 5 biggest Latam economies 20

Exhibit 12: 700MHZ spectrum availability in Latin America, selected countries 21

Exhibit 13: Mobile market metrics in Uruguay 23

Exhibit 14: Mobile operator subscriber market share in Uruguay, 2017 23

Exhibit 15: Antel Uruguay market metrics 24

Exhibit 16: Example of Antel’s plan adjustment to specific segments 25

Exhibit 17: Mobile market metrics in Brazil 26

Exhibit 18: Mobile operator subscriber market share in Brazil, 2017 26

Exhibit 19: Tim Brazil market metrics 27

Exhibit 20: Tim brazil new ‘Tim black’ postpaid service plans, August 2017 28

Exhibit 21: Mobile market metrics in Mexico 29

Exhibit 22: Mobile operator subscriber market share in Mexico, 2017 29

Exhibit 23: AT&T Mexico market metrics 30

Exhibit 24: AT&T Mexico's postpaid 4G postpaid plans, august 2017 31

Figures

List of Figures

Exhibit 1: Chronology of LTE and LTE-advanced network launches in Latin America – selected group of countries 9

Exhibit 2: Mobile subscriptions distribution by technology family – total Latin America and selected group of countries, 2017 vs 2022 10

Exhibit 3: Mobile data metrics in total Latin America and selected group of countries 11

Exhibit 4: Current 4G share of total subscriptions vs. 4G subscriptions and mobile data revenue growth – selected group of countries 12

Exhibit 5: Mobile data and 4G share of total subscriptions, mobile data average monthly revenue per data subscriber – regional comparison 13

Exhibit 6: Main factors affecting 4G segment growth in Latin America, 2017 15

Exhibit 7: Mobile data consumption in selected Latin American countries 16

Exhibit 8: Examples of mobile operator smartphone offerings using subsidies, August 2017 17

Exhibit 9: Examples of mobile operator value added plans, August 2017 18

Exhibit 10: Examples of mobile operator low-cost plans, August 2017 19

Exhibit 11: ICT connectivity plans in the 5 biggest Latam economies 20

Exhibit 12: 700MHZ spectrum availability in Latin America, selected countries 21

Exhibit 13: Mobile market metrics in Uruguay 23

Exhibit 14: Mobile operator subscriber market share in Uruguay, 2017 23

Exhibit 15: Antel Uruguay market metrics 24

Exhibit 16: Example of Antel’s plan adjustment to specific segments 25

Exhibit 17: Mobile market metrics in Brazil 26

Exhibit 18: Mobile operator subscriber market share in Brazil, 2017 26

Exhibit 19: Tim Brazil market metrics 27

Exhibit 20: Tim brazil new ‘Tim black’ postpaid service plans, August 2017 28

Exhibit 21: Mobile market metrics in Mexico 29

Exhibit 22: Mobile operator subscriber market share in Mexico, 2017 29

Exhibit 23: AT&T Mexico market metrics 30

Exhibit 24: AT&T Mexico's postpaid 4G postpaid plans, august 2017 31

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