According to the new Juniper Research’s report titled “South American Mobile Markets: Trends and Forecasts 2008-2013,” increasing adoption of messaging and content services is expected to push operator-billed data revenues in South America from $8.7 billion in 2008 to more than $23.3 billion by 2013.
As voice revenues are coming under ever-increasing pressure from competitive pricing and regulatory intervention, operators are seeking to enhance their on-portal content offering. However, the report cautioned that excessive retail price points and data download costs continue to restrict the development of rich media services across the region.
Report author Dr Windsor Holden argues that despite remarkable surge in subscriber growth, South America continues to lag behind the rest of the world in terms of the uptake of non-voice services. “And while this can in part be attributed to the historical difficulties around interoperability which delayed mass adoption of SMS services, it is also fair to say that the high cost of games, browsing and mobile video has acted as a significant inhibitor to growth,” he added.
Nevertheless, Juniper is optimistic that following 3G network roll-outs across the region costs will fall and adoption rates rise.
Other findings from the Juniper report include:
- The South American mobile user base is expected to rise from 411 million in 2008 to 556 million in 2013.
- Total operator-billed voice revenues for the region are expected to peak in 2011 at $67.3 billion and will decline thereafter.
- Mexico will retain the highest blended ARPU throughout the forecast period, marginally ahead of Chile.
Juniper’s report provides in-depth coverage and forecasts for six key South American markets — Argentina, Brazil, Chile, Colombia, Mexico and Peru — as well as for the region as a whole. More information is available on their website.