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Cambridge, Massachusetts - August 10, 2010 - Network operators in Latin America will use aggressive pricing strategies to boost subscriber counts and revenues for multiplay services over the next five years, resulting in a projected multiplay revenue growth rate of 58 percent from 2010 to 2014, according to a new report from Pyramid Research (www.pyr.com).
Multiplay in Latin America: Aggressive Pricing to Drive Double-Digit Revenue Growth examines the three levers operators will need to pull to ensure they keep their multiplay revenues growing: Increasing the number of customers signing up for bundled services, selling new value-added services to existing clients to increase fees in higher-income segments, and shifting existing multiplay clients from double play to triple play and to quad play. Finally, the report offers three case studies to illustrate the different strategies followed by Latin American operators to retain and increase customers. Download an excerpt here. Purchase the report here.
While competition and economic factors continue to put pressure on multiplay prices in Latin America, the price erosion is likely to work in operators’ favor in terms of expanding their subscriber bases and ultimately increasing total multiplay revenues, says Gerardo Sandoval, Manager for the Latin America region at Pyramid Research. “Operators will need to grow the number of customers subscribing to multiplay services within the current segments and tap into new lower-income segments,” he explains. “Declining prices will make multiplay a more appealing product for lower-income families in Latin America, which in turn will have a positive impact on the number of subscribers in the region.”
By 2014 multiplay subscribers will reach 52.9 million, Pyramid projects. “We expect that by 2014, 40.1 million households will subscribe to double play, 12.4 million to triple play, and 397,000 to quad play in the region,” Sandoval says. “This is a considerable increase from the 32.2 million households subscribing today to multiplay, of which almost 27 million subscribe to double play, 5.3 million to triple play, and 20,000 to quad play,” Sandoval explains.
Multiplay in Latin America: Aggressive Pricing to Drive Double-Digit Revenue Growth is part of Pyramid Research's Latin America Telecom Insider report series. Download an excerpt of this report here. This report can be purchased online here or by contacting info@pyr.com.
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About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries - a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research and insightful technology analysis.
About Light Reading
Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and event focused company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technological and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, and TelcoTV Asia, Ethernet Expo New York and Ethernet Europe, and The Tower Summit @ CTIA, as well as focused one-day events tailored for cable, mobile, and wireline executives in the US, Europe, India, and China. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
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Press contact:
Jennifer Baker
+1 617 871-1910
jbaker@pyr.com
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