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Growth of Mobile Content Services in Latin America to Directly Impact Rise in Mobile Operators' ARPU

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Growth of Mobile Content Services in Latin America to Directly Impact Rise in Mobile Operators' ARPU

Mumbai, Maharashtra, India

In the first years of the new millennium, the mobile telephony services market in Latin America developed at a very rapid pace. Initially, voice service was the main driver of this market. However, similar to regions such as North America, Europe, and Asia this changed. As mobile telephony developed, mobile data services started gaining importance and began to be considered as the main hope for higher profitability for many mobile operators.

New analysis from Frost & Sullivan (http://www. frost.com/communicationsservices), Latin America Mobile Content Services Markets, reveals that revenues in this industry totaled $594.2 million in 2005 and estimates to reach $2.61 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Latin America mobile content services markets, then send an email to Ravinder Kaur, Corporate Communications, at ravinder.kaur@frost.com with your full name, company name, title, telephone number, city, state, country and email. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The need to increase subscribers' average revenue per user (ARPU) expects to instigate operators' efforts in promoting mobile content services in Latin America," explains Frost & Sullivan Research Analyst Victor Casiano and Program Leader Alex Zago. "The increasing affordability and accessibility of advanced types of handsets also expects to foster the mobile content market."

As voice traffic and revenues reduce over the years, mobile data services expects to be the mobile operators' main hope of profitability. Though messaging still forms the major source of mobile data revenues, mobile content services have begun to play a significant role in revenue generation. Therefore, operators expect to increase their efforts in promoting the services, which, together with the increasing affordability of advanced types of handsets, expects to drive the market.

Despite favorable conditions that indicate a very high market growth, mobile subscribers are still unaware of their handsets' capabilities and mobile content services' availability. The mobile content market is also limited by the fact that not all the mobile handsets are capable of running all mobile content services, especially games and video. Besides, many users still find it difficult to search for the contents they want, especially on wireless application protocol (WAP) portal. These factors tend to diminish the penetration of mobile content services.

"Lack of end-user education in terms of mobile content could hinder the widespread uptake of these services," explain Casiano and Zago. "In addition, the present revenue share model acts as a restraint for the mobile content services markets, as it affects the business feasibility of small application developers."

In order to overcome the mobile subscribers' unawareness of mobile content availability, operators need to educate the end users on the handsets' capabilities and services, and also make their WAP portals user friendly. Besides, increasing piracy of content in the Internet is likely to benefit content producers and developers to invest in mobile content as it is a market with less piracy opportunities. This combined with the aging of the market, which is likely to bring younger users and unexplored segments, is likely to drive the market strongly.

Latin America Mobile Content Services Markets is part of the Communications Services subscription and it evaluates the mobile content markets in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. This study analyzes the following segments in the mobile content services markets: mobile music, games, images, video, and mobile information. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Latin America Mobile Content Services Markets
F725-63

Ravinder Kaur, Corporate Communications - South Asia & Middle East, Frost & Sullivan, + 91 (044) 4204 4515 ravinder.kaur@frost.com

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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