3G Networks Drive Fixed/Mobile Service Offer in Latin America

Convergent Fixed-Mobile service offer is still embryonic in Latin America, with Brazil as the market providing the greatest range of such services, reports Signals Telecom Consulting. The report also says that Fixed/Mobile Convergence (FMC) services will record CAGR of 14.8% over the 2009-2014 period, and that Mexico will account for only about 11% of FMC lines in Latin America in 2014.

“Brazil’s dominant position will decline as new markets offering convergent fixed-mobile services develop. Markets in Mexico, Argentina and Chile will gradually begin to gain share of total FMC lines. Such models proliferated basically as from the sale of 3G services based on UMTS/HSPA and, to a lesser extent on WiMAX and WiFi. There are various service models that are designed mainly to provide constant broadband access, and in more advanced cases they consist of bundled fixed and mobile broadband services,” pointed out Elias Vicente, Signals Telecom Consulting analyst and author of the report.

Currently most FMC service offer is based on the use of convergent devices. “This Fixed-Mobile business model centers on the presence of operators providing both fixed and mobile services. Service offer is based on a software solution that allows users to select the telephone line on which they are to make or receive calls within the service area. The precedent for this service was deployed in Argentina by Movicom BellSouth and marketed under the name of “Movicom en Casa,” added Vicente.

The report identifies the main barriers to the adoption of FMC services as the limited operator offer and low regional penetration of devices capable of carrying such services. “We consider that the FMC service market in Latin America will experience growth in the medium term as a result of the use of UMTS/HSPA networks. Over the next 12 months there will be growth in the offer of convergent services, particularly in the markets showing the largest number of developments for this type of service: Argentina, Brazil and Chile,” concluded Vicente.

Posted to the site on 28th May 2009