Prepaid Mobile to Expand Market for Operators in Latin America, Pyramid Finds

CAMBRIDGE, Mass., July 22 /PRNewswire/ -- In Latin America, mobile broadband has shown significant growth in the last few years and is expected to keep growing at a fast pace, particularly prepaid mobile Internet. However, Mobile operators need to expand their target market in order to generate more service sales and, therefore, revenues, according to a new report from Pyramid Research (www.pyr.com).

Prepaid Mobile Broadband Presents a Big Opportunity for Latin American Operators analyzes the opportunity that mobile operators have to expand their target market to include the prepaid market to generate more revenue. It also examines how the low penetration rate of fixed and satellite broadband, due to the high costs and poor services from lack of availability in the region, creates an opening for 3G Internet to thrive. Download an excerpt here: http://www.pyramidresearch.com/downloads.htm?id=5&sc=PRN072210_INSLA2.3. Purchase the report here: http://www.pyramidresearch.com/store/ins_la_100714.htm?sc=PRN072210_INSLA2.3.

Pyramid expects prepaid mobile Internet service to take off and attract a significant number of users in Latin America as it "will be used not only by customers without fixed Internet in their home or office, but it will also attract a high number of occasional users, especially those who do not require full-time mobility for their connections," says Vinicius Caetano, Senior Analyst at Pyramid, and author of this report. "This service will break the telecom industry myth that the prepaid service is not profitable," adds Caetano.

"The traditional mobile model, where operators mainly offer valued-added services to postpaid customers, neglects the mid-to-low-end of the population in emerging markets in its early stages," indicates Caetano. Up to half of the consumer spending in these countries is omitted due to the lower ARPU among low-end and prepaid customers. "In order to better address this overlooked market, operators will have to focus on services based on characteristics that are compatible with the majority of the population, including the prepaid model," recommends Caetano. Pyramid believes the business case for mobile data will follow the same concept as for voice: make it affordable, easy to use and flexible.

Prepaid Mobile Broadband Presents a Big Opportunity for Latin American Operators is part of Pyramid Research's Latin America Telecom Insider report series. Download an excerpt of this report here: http://www.pyramidresearch.com/downloads.htm?id=5&sc=PRN072210_INSLA2.3. This report can be purchased online here: http://www.pyramidresearch.com/store/ins_la_100714.htm?sc=PRN072210_INSLA2.3 or by contacting [email protected].

SOURCE Pyramid Research