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Converged Services to Shape the Argentinian Telecommunications Services Market, Finds Frost & Sullivan

Increasing coverage of alternate networks will provide telecom services to low-income users in small and medium cities

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BUENOS AIRES, Argentina, Feb. 7, 2013 /PRNewswire/ -- The Argentinian telecommunications services market is on the upswing as fixed and mobile Telecom operators integrate networks to provide converged services. Telecom companies are increasingly investing in triple play services to increase fixed and mobile data services usage since voices services usage has been decreasing during the last years.

New analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), Argentina Total Telecommunications Services Markets, 2012, finds that the market generated revenues of $18.44 billion in 2012, and estimates this to reach $26.58 billion in 2017, mainly due to the intensifying competition, offer of multiple-play bundles, expansion of 3G mobile networks, and the implementation of Action Plan Argentina Connected, conducted by the Government.

Telecom operators that cannot offer TV can deliver content on demand through broadband, giving subscribers access to a wide variety of audiovisual content on their TV and computer. They compel cable operators to provide lower-priced services and triple-play offerings.

Mobile data services' adoption will be supported by the extended coverage of mobile broadband networks and network investment in high-speed parallel adder (HSPA+) and long-term evolution (LTE)," said Frost & Sullivan ICT Industry Analyst Maria Agustina Di Genaro. "It will also be reinforced by the provision of geolocation services and mobile commerce, increasing adoption of smart devices, and lower-priced services."

Competition in the market is expected to escalate with the approval of the new regulation relating to 26,522 Law on Audiovisual Communication Services. The regulation will raise the number of cities with coverage overlap of different fixed and mobile networks, and intensify competition among integrated participants offering converged services.

However, this competition will not percolate down to remote areas and small cities. The regulated tariff and regulator's delay on spectrum auctions and competitive remedies will also hold back the Argentinian market.

Operators are increasing investments to expand 3G network coverage and improve the quality of their services. In addition, the major Telcos are investing in network and customer base expansion, and launching new digital services in the country.

Investments will be focused on generating revenue with converged plans such as bundling data and voice services, retaining client base with more value-added services, and migrating prepaid consumers to the postpaid segment through attractive price promotions.

"Alternative plans, bundles, and economy lines will help companies sustain their client base in the short term; however, voice over Internet protocol and mobile telephony are likely to drive substitution in the long term," noted Di Genaro. "Wireless networks will become the predominant infrastructure for fixed operators to serve rural, remote, and low-income areas, and for mobile operators to complement their offerings with fixed telephony."

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Argentina Total Telecommunications Services Markets, 2012 is part of the Telecom Services Growth Partnership Service program. Frost & Sullivan's related research services include: mobile services, Pay TV services, broadband services, and data communications. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Argentina Total Telecommunications Services Markets, 2012
NBB9-63

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

SOURCE Frost & Sullivan



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http://www.ipcommunications.frost.com

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