Growing Preeminence of GSM in Latin America and the Caribbean

The implications of GSM's rapid growth in the Latin American and Caribbean mobile sector are the subject of a just-released study by 3G Americas, which demonstrates the reasons why the industry association believes GSM is the best technological choice for the future growth of mobile operators. The study defines and explains distinctive periods in the region's mobile development by tracing technology trends from 1986 to 2002 that culminate in an ever-stronger presence for GSM.

The analysis identifies three phases in the development of mobile technology in the region: beginning with the introduction of analog services in 1986, usually by a state-owned operator; followed by a second phase, from 1997 to 2000, when mobile telephony moved from a luxury to a popular service with the introduction of additional spectrum and newly-licensed digital mobile operators; and entering in 2001 a third era of increased competition, marked by explosive growth largely through greatly expanded introductions of GSM technology.

The author of the paper, Dr. Richard Downes, Director of Latin America and the Caribbean for 3G Americas, noted that, "By looking at both the region as a whole and at specific markets across time, it is possible to see how GSM operators have leveraged GSM's unique attributes to gain more market share than other new entrants. Clearly, investment decisions are moving GSM towards a dominant market share on a regional basis."

"The recent opening of the mobile marketplace to additional providers and the resulting intense competition have created an environment highly favorable to the growth of GSM," remarked Downes. "Of the 24 new digital networks in the region, 18 deployed GSM technology while there were only three deployments of CDMA and TDMA respectively. Additionally, with 25 of 31 TDMA operators selecting the GSM-based route to third generation services, GSM has become the de-facto technology of choice for future growth."

GSM's Rise to Preeminence in the Latin American and Caribbean Mobile Marketplace presents market examples for Brazil, Chile, Mexico and the Caribbean. In all cases, new GSM operators have experienced market growth that far exceeded all other technologies.

"Pyramid Research forecast that GSM subscribers in Latin America will grow at a Compound Annual Growth Rate of 49% between 2002 and 2008, reaching almost 75 million users by the end of the period," commented Juliana Abreu, Senior Analyst, Latin America for Pyramid Research. "Furthermore, GSM's participation in the Latin American mobile market will grow from 7% of total subscribers at year-end 2002 to 44% by 2008."

The full white paper is available for free download at http://www.3gamericas.org/pdfs/gsm_rise_to_preeminence_lac_eng.pdf"

Posted to the site on 30th May 2003