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Cambridge, MA, February 20, 2007—Latin American mobile operators are expected to spend a total of US$93m on hosted services in 2007, according to Pyramid Research’s new report, Managed Services in Latin America: What It Will Take for MNOs to Make The Jump . Hosted services are expected to represent only 9% of the region’s investments in end-user services, service delivery solutions, and charging and payment solutions, but they will deliver savings of 13% in overall Capex.
“Operators have expressed strong interest in hosted solutions as a way to reduce Capex,” said Ozgur Aytar, Research Manager at Pyramid Research. “They face a conundrum, however: hosted services increase Opex—another area where operators are looking for efficiencies, and therefore, to-date, investments have been limited.”
The report observes that operators have traditionally opted for owning the platforms and having third-parties host applications (such as video services) on them. Beginning in 2007, operators plan to ramp up investments in solutions related to convergence and IMS, device management, and service creation and determine whether to host or buy these platforms depending on their cost-benefit analysis.
“Today, operators have to justify their need for hosted solutions extensively before they can adopt them,” said Aytar. “Based on what we heard during our conversations with the region’s leading players, we don’t anticipate a significant shift in their approach in the next four years.” LATAM’s cumulative hosting investments are projected to reach nearly US$500m between 2007 and 2010, accounting for 10% of overall investments in end-user services, service delivery solutions, and charging and payment solutions.
To find out more about the report Managed Services in Latin America: What It Will Take for MNOs to Make the Jump , please click on the following link:
http://www.pyramidresearch.com/store/rp_managedla.htm
About Pyramid Research
For twenty years, Pyramid Research has helped companies in the converging communications, media, and technology industries to stay ahead of market trends, understand competitive threats, and capitalize on opportunities. We advise the world’s leading vendors, service providers, equipment manufacturers, and the financial community on how to implement best practices, build offensive growth strategies, and drive profitability. Pyramid has offices in Cambridge, Seattle, Miami, London and Hong Kong.
Press Contact:
Amalia Vega
Pyramid Research
E: avega@pyr.com
P: (617) 494-1515
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