As mobile telephony, especially voice services, is reaching saturation in the corporate segment in many Latin American countries, mobile operators are focusing on increasing penetration in the small- and medium-sized enterprise (SME) segment. Acknowledging this segment's price sensitivity, operators are offering tailored services and solutions and specific customer support at low costs. For instance, the roll out of the mobile number portability (MNP) plan is expected to increase competition in mobile enterprise services markets and help reduce average prices.
New analysis from Frost & Sullivan (wireless.frost.com), Latin American Mobile Enterprise Services Markets; 2011, finds that the market earned revenues of $13.63 billion in 2010 and estimates this to reach $22.36 billion in 2016, at a compound annual growth rate of 8.6 percent. This growth is mainly driven by the rising profile of SMEs, launch of affordable services, and the dissemination of voice and data solutions, including machine-to-machine (M2M) and mobile cloud services.
The current high prices and tax burdens on equipment and services have inflated the overall costs of services. To mitigate this cost challenge, operators are improving the value proposition for enterprises, and demonstrating the increase in productivity and profitability.
The proliferation of smart devices, use of mobile data services and value-added services (VAS) through the offer of lower tariffs and innovative plans, including hybrid plans, will go a long way in raising market revenues. Operators will also look to offer lower-end phones with Internet access, expand mobile broadband capacity, and increase the number of applications and cloud services.
"Low-priced voice plans, along with plans for unlimited on-net calls, are expected to become widely available with the provision of push-to-talk (PTT) services," says Frost & Sullivan Industry Analyst Renato Pasquini. "Data services plans are also expected to be priced lower but they will offer reduced traffic and speed."
Since operators are dealing with enterprise-sensitive information, they need to ensure top-level security in their services. To go beyond the executive level and increase market potential, operators have to collaborate with clients and establish policies for the use of devices and access to corporate information, as well as manage and control (remotely) the use of mobile applications, as with computers.
Mobile operators have to develop solutions that offer demonstrable returns to enterprises. They also have to provide a quantitative analysis of the project results, and show that security issues are addressed by companies' policies and solutions such as mobile device management (MDM).
"Mobile operators need to launch innovative and convergent services at affordable prices, and partner with application developers to provide complete solutions that address enterprises' needs," notes Pasquini.
If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your contact details.
Latin American Mobile Enterprise Services Markets; 2011 is part of the Mobile & Wireless Communications Growth Partnership Services program, which also includes research in the following markets: Latin American Mobile Services Markets Outlook, Latin America Mobile Content Markets, Latin American Machine-to-Machine Services Markets, and Latin American Mobile Broadband Services Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Latin American Mobile Enterprise Services Markets 2011 / 9838