Pyramid Points - LATAM Operators Warm Up to Spectrum Sharing
  Pyramid Points
M2M cloud platforms accelerate MNO's time to market for valued added services
October 15, 2014
Apple Watch Overcomes Design Challenges, Sets New Standard for Functionality
September 16, 2014
The Swiss army knife framework for CapEx optimization
February 15, 2014
Implications of the Google-Lenovo Deal
February 12, 2014
Cisco and NEC optimize telco cloud delivery for small and midsize businesses
January 16, 2014
4G unveiled in China, but China Mobile still has work to do
December 11, 2013
Orange Dominicana by the numbers
October 25, 2013
Colombian Reversal Clause Unlikely to Slow 4G Buildout
September 19, 2013
Microsoft - Nokia & iPhone 5c: What Do They Mean for Smartphone Trends in Emerging Markets?
September 17, 2013
Is the Arab World Ready for OTT Video?
September 13, 2013
Turk Telekom bid for Digiturk is a strategic gamble
August 2, 2013
Before and After the App Store: The Changing Fortunes of Mobile Operators
July 24, 2013
In 4G Auction in Colombia, New Entrants Responded to Government Efforts to Foster Competition
July 15, 2013
Telefonica sale in Central America does not point to regional repositioning
June 5, 2013
Emerging markets to drive cellular M2M
May 22, 2013
Orange plans MVNOs to address new markets
May 9, 2013
What Apple needs to do to make China its No. 1 market
April 24, 2013
Chinese Regulator Opens Up to MVNOs
March 15, 2013
CDNs Offer New OTT Revenue Hope
February 20, 2013
Airtel Rethinks Its African Approach
February 12, 2013

          Print        Email         Bookmark and Share

LATAM Operators Warm Up to Spectrum Sharing

December 11, 2012

Spectrum shortage and increasing network costs are becoming concerns in the mobile industry. MNOs are investing in more spectrum and infrastructure to remain competitive and offer state-of-the-art services. Coverage was the main differentiator among operators, providing a competitive advantage, but this type of competition is changing.

Today, voice services and SMS are essential for customers in Latin America. The evidence suggests that SMS traffic is increasing, along with minutes of use (MOU).

Exhibit: SMS traffic and MOU trends, Latin America

Operators Warm Up to Spectrum Sharing

Source: Pyramid Research Mobile Data Forecast, Q3 2012

VoIP, online gaming and video streaming have a seemingly insatiable thirst for mobile data, thus posing challenges for operators in Latin America. We forecast that the demand for mobile data access will increase every year, and operators are struggling to keep up. Few operators can invest in spectrum and infrastructure, and governments are struggling to auction enough additional frequency bands, and to do so quickly enough, to meet operator -- and consumer -- demand.

Under these circumstances, MNOs do not have many choices to overcome the spectrum shortage or enough cash to acquire it. A cost-effective solution to this problem is the sharing of infrastructure with other MNOs. Sharing the network was unthinkable in a market where coverage was a competitive advantage, but the market has evolved and mobile content now is more relevant than coverage. It is quite reasonable to think that operators with the biggest footprint, especially in concentrated markets, will be reluctant to share their infrastructure (and thus dilute their competitive advantage) with the competition, but it is reasonable to think that tier-2 operators will share certain portions of their networks.

Sharing infrastructure can take many options, from a passive sharing (e.g., towers, sites), to an active sharing (e.g., spectrum, RAN sharing). The reduction of costs is inversely related to the level of network sharing.

Because the competition is now in the arena of mobile data, operators will try to differentiate from the rest in terms of content -- for example, with fixed-mobile convergent services and unified communication applications that are data-intensive. As a hypothetical example, two or more MNOs could roll out a single LTE network, reducing deployment times, costs and complying with certain social goals expressed by the regulatory framework. In economies where the so-called digital divide is a major concern, network sharing could incentivize the rollout of infrastructure in areas without mobile coverage.

— Jose Mercado, Senior Analyst

Related resources:

OTT IP Messaging: Operator Strategies for Over-the-Top Communication
Telecom Insider published October 2012
The main focus of this report is on mobile IP messaging. We examine the significance of OTT communication (voice and messaging), and more specifically the impact of OTT messaging, and take a closer look at six different strategies that operators are currently using to respond to the threat posed by OTT. The report presents case studies from SingTel, Claro, Orange, Telefonica, T-Mobile, Vodafone and Three and examines how these different operators are approaching OTT communication. We conclude with some recommendations for operators as they rethink and refine their strategies.

Latin America Mobile Data Pricing Landscape and Trends
Telecom Insider published August 2012
This Insider examines what carriers are doing at a Latin America regional level in terms of pricing, to close the gap between revenue and data traffic growth. We focus on the major regional mobile markets: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. The report concludes with case studies that illustrate some of the future trends analyzed in this report, a summary of key highlights and a set of recommendations.

Pyramid Research Mobile Data Forecast
Forecast published quarterly
A premium version of the Mobile Demand Forecast, it tracks current and future demand for mobile data services, within the context of overall mobile demand. This forecast includes all the same tracking as the standard Mobile Demand Forecast but breaks down mobile data ARPS, revenues and subscriptions at the service level.


 Latest Research
Thematic Reports
  FTTH/B Deployments in Asia Pacific
  Devices for the Wrist
  Mobile Data Pricing: Innovative Practices to Drive Adoption and Traffic
  LTE Business Models: Best Practices in Network Deployment, Positioning and Service Pricing
  The Personal Cloud: A Strategic Imperative for Operators
  More Reports
 Telecom Insiders
  Cellular M2M Services in Africa & the Middle East: Market Sizing, Forecasts and Case Studies
  M-Commerce in Sub-Saharan Africa: Making Sense of a Growing Mobile Business
  Cellular M2M Services in Latin America: Redefining the Role of Mobile Operators
  Mobile Broadband in Africa and the Middle East: LTE Profit Drivers and Outlook
  Market Opportunities and the Evolution of MVNO Business Models in Western Europe
  More Insiders
 Country Intelligence Reports
  Romania: Network Improvements Enable Multiplay and Multiplatform Services to Drive Telecom Market
  Canada: Data Segment to Boom after LTE Spectrum Allocation
  Italy: Mobile Broadband Drives Telecom Market Growth as M&A Activity Intensifies
  Paraguay: LTE Deployments and Nationwide Fiber-Optic Backbone Rollout Will Boost Data Consumption
  Finland: Growing Demand for New and Innovative Data Services Drives Operator Transformation to All-IP
  More CIRs
 Market Forecasts
  Fixed Communications Forecast
  Fixed Operator Marketshare
  Mobile Operator KPI
  Mobile Data
  More Forecasts
  Terms and Conditions      |      Privacy Policy      |      Copyright © 2014 Pyramid Research. All rights reserved.