Latin American Operators Prepare for the Perfect Storm, Pyramid Finds

Oct 13, 2010, 08:00 ET from Pyramid Research

CAMBRIDGE, Mass., Oct. 13 /PRNewswire/ -- Mobile data services are growing rapidly in Latin America, where a combination of factors are creating the perfect storm for operators to serve a larger number of customers, resulting in higher demand for spectrum to support the new traffic on mobile networks, according to a new report from Pyramid Research (

Strong Demand for Mobile Data Services Accelerates Spectrum Auctions analyzes the dynamics behind mobile data growth in Latin America and its likely implication of requiring regulators to offer additional spectrum. The report analyzes the impact of mobile devices (laptops and smartphones) on generating more demand for mobile data services and compares the contribution of mobile data to economic activity in Latin America with other regions.

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As mobile penetration approaches 100 percent in Latin America, and as voice revenues are stagnating, mobile data services are growing rapidly. Pyramid believes that competitive conditions in markets in Latin America, where mobile data services are still in their infancy, will cause prices to decline, allowing more subscribers to join, notes Jose Magana, Senior Analyst at Pyramid. Mobile data services in Latin America will expand at a CAGR of 31 percent from 2010 to 2015, when mobile Internet users and mobile broadband will supply most of the revenue.

"This wave of net additions, the availability of new-generation networks, the persistent decline of mobile voice tariffs, and the larger affordability of advanced phones and mobile computers may translate into heavy demand for bandwidth and traffic, causing operators to use up existing spectrum and demand that regulators streamline the process to free up capacity," says Magana.

In Latin America, recent and upcoming auctions of spectrums total around 1,200 MHz in several bands. "All countries are auctioning more than 100 MHz of additional spectrum each to support demand for advanced services; in addition, as the implementation of 4G networks becomes cheaper, Pyramid anticipates pressure to auction spectrum will increase."

Strong Demand for Mobile Data Services Accelerates Spectrum Auctions is part of Pyramid Research's Latin America Telecom Insider report series. Download an excerpt of this report: This report is priced at $595 and can be purchased online here: or by contacting .

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SOURCE Pyramid Research