Frost & Sullivan: Unlimited Voice, Mobile Applications, and M2M Lead to Mobile Enterprise Services Growth in Latin America Carriers need to address security concerns and demonstrate the return on investment to widen their customer base
BUENOS AIRES, Argentina, May 8, 2013 /PRNewswire/ -- Latin American mobile enterprise service providers are looking to make inroads into the small and medium-sized enterprises (SMEs) segment by launching sophisticated, yet affordable devices and services. Carriers are expected to expand their machine-to-machine (M2M) portfolios to other applications, beyond point of sale (PoS) and tracking, to smart metering and m-health. The increased availability of smartphones and tablets and mobile broadband capacity expansion are likely to further boost the uptake of enterprise mobility services among enterprises in Latin America.
New analysis from Frost & Sullivan (http://www.wireless.frost.com), Latin American Mobile Enterprise Services Markets, finds that the market earned revenues of $16.53 billion in 2012 and estimates this to reach $24.69 billion in 2018. The market will be mainly driven by the increasing relevance of SMEs and the dissemination of voice and data solutions, including M2M, and innovative mobile applications and cloud services.
With the saturation of the large enterprise segment in some countries, mobile operators are turning their attention to the SMB segment by offering mobile broadband, voice and data services, tailored services and solutions with specific customer support. However, the prices of equipment and services are still prohibitive to a large section of the market.
The heavy taxes on mobile devices and services makes it hard for mobile carriers to lower prices in the short term but they are trying to improve the adoption rates of smart devices and mobile data services through highly subsidized smartphones and lower-end webphones, which, in turn, is driving postpaid and hybrid plans.
"Low-priced voice plans are expected to become widely available with the dissemination of push to talk (PTT) services and unlimited on-net calls," said Frost & Sullivan ICT Industry Analyst Maria Agustina Di Genaro. "Data services plans are also expected to be priced lower, but end users may have to settle for reduced traffic or speed."
Another issue that will peg the market back is regulatory delays in defining new rules and providing new frequency concessions. Security concerns are also an important issue, particularly when enterprise-sensitive information is involved. To increase the market potential, companies have to establish policies for the use of devices and access to corporate information, and manage and remotely control the use of mobile applications and services by employees, as is done with computers.
"Further, mobile operators have to develop solutions that show enterprises that the value they derive from the deployment justifies the high cost," noted Di Genaro. "They should present quantitative analysis of the project, and demonstrate the ways in which security issues are addressed by companies' policies and solutions such as mobile device management and video monitoring."
Overall, mobile operators need to deploy tailored services and launch innovative and convergent services at affordable prices, and partner with application developers to provide a complete solution that addresses an enterprise's needs.
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Latin American Mobile Enterprise Services Markets is part of the Mobile & Wireless Communications Growth Partnership Service program. Frost & Sullivan's related research services include Latin American Pay TV services markets, mobile services outlook content markets, datacommunications services markets, and broadband services markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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SOURCE Frost & Sullivan