Siemens Sees Strong Growth in Latin America

Siemens Mobile is pursuing its aggressive growth strategy in Latin America and has achieved its growth target, announced in February 2002. By 2004 the Siemens ICM branch is aiming for a market share of 25% in Latin America and Brazil, and a place among the top three GSM suppliers in the region. This year Siemens could almost quadruple its mobile phone shipments in Latin America and Siemens is already the market leader for GSM telephones in Brazil, Venezuela and Jamaica. A further milestone are the two new contracts to supply GSM infrastructure in Latin America: for Telecom Italia Mobile (TIM) in Brazil and for Digitel in Venezuela.

The agreement with TIM accounts for the supply and installation of mobile radio technology for the construction of GSM networks in Brazil. This is the second large order that Siemens has received for GSM infrastructures in Brazil. The contract with Digitel in Venezuela entails the equipment of GSM networks with base stations and microwave systems. Siemens mobile is the market leader for microwave systems in Latin America.

Siemens mobile is also experiencing great success with its mobile phone production in Brazil: instead of the 600, 000 units envisaged this year, the production of mobile phones in Manaus has reached 1 million in December. Hence Siemens now clearly leads the market in Brazil with a share of more than 50% of GSM mobile phones.

"We have been justified by our successes: within a single year we have almost quadrupled our production of mobile telephones and we now have a market share of 5.1% in the region - across all standards" said Joe Kaeser, Board Member of Siemens Information and Communication Mobile. "With our broad product portfolio, from entry-level phones to high-end devices, we are the best equipped to meet the needs of the Latin American market."

The mobile telecommunications sector in Latin America offers huge potential for growth. In total, more than 100 million people use mobile phones in the region, which equals a market penetration of 19%. There are currently more than 20 mobile phone operators offering GSM services in the region. "We've known the market for decades and maintain intensive contact with our clients, which creates trust. But that's not the only reason why we are a highly attractive partner for all GSM operators: we are one of the leading GSM suppliers worldwide, we work locally and offer the operators tailored products and solutions according to their needs," explained Joe Kaeser."

Posted to the site on 4th December 2002