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Puerto Rico: 3G to Dominate by 2015

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3G technology will account for 82 percent of total mobile subscriptions in Puerto Rico by 2015, according to a new report from Pyramid Research.

"Puerto Rico's shrinking fixed voice market, in combination with a growing demand for data applications and contents, brings new revenue opportunities to local operators, both in the fixed and mobile segments," says Eulalia Marin-Sorribes, Research Analyst at Pyramid. "As Puerto Rico has the highest 3G penetration in Latin America, operators are now trying to make customers use the technology for services beyond SMS and MMS by promoting the use of smartphones," says Marin-Sorribes.

"Mobile applications, such as mobile banking and mobile advertising, could become rich revenue lines for local companies, particularly taking into account Puerto Rico's relatively high GDP per capita," she says. Operators are trying to encourage customers to use 3G technology for services beyond SMS and MMS by promoting the use of smartphones.

"AT&T currently offers some the most popular 3G devices in the market, including the BlackBerry and the iPhone with unlimited data contracts, as well as the iPad. The operator had announced in early 2010 it had deployed HSPA 7.2 technology across its national 3G network. The upgrade is expected to pave the way for the future deployment of LTE technology, which AT&T plans to start in 2011. A similar strategy is being followed by T-Mobile, which expected to complete its HSPA+ network across its network in 2010," Marin-Sorribes explains.

"Broadband revenues will experience a significant expansion during the forecasting period at 10.3 percent CAGR, reaching $340 million at year-end 2015," notes Marin-Sorribes. "Growth will be boosted by the increasing popularity of multiplay packages, including services, such as voice, video, or both. In fact, all the major fixed and cable operators already offer competitive combos," she adds. Over the last years, cable operators in Puerto Rico have been aggressively bundling services as a strategy to erode the Claro/PRTC's market share.

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Tags: 3g  claro  Puerto Rico