From 3G to LTE: Radio Access Networks Will Drive Mobile Revenue Growth in Latin America, Finds Pyramid

CAMBRIDGE, Massachusetts - Radio access networks will evolve to provide solid platforms for new services and applications, making mobile broadband the main driver of revenue growth for mobile operators in Latin America, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

From 3G to LTE: Latin America’s Path to Mobile Broadband focuses on mobile network technologies, analyzing their role in building dynamic mobile broadband markets across Latin America. In this 23-page report, Pyramid examines the state of network technology adoption to identify the role of dominant standards in mobile data growth. We also look at how competitive pressures from CDMA EV-DO and Mobile WiMax are boosting that growth, and whether strategic decisions by alternative mobile operators could accelerate 4G uptake. The report ends with three case studies of specific conditions in and expectations for Brazil, Chile, and Mexico. Download an excerpt of this report here: www.pyr.com/downloads.htm?id=5&sc=PR061209_ILA1.3. Pyramid Points, event-driven blogs on the telecom market written by analysts dedicated to the region are also available on www.pyr.com.

Radio access networks will enable new services and applications that will make mobile broadband the main revenue growth driver in Latin America due to three main catalysts, notes Cesar Jimenez, analyst at Pyramid Research and author of the report. The first catalyst will be the use of common platforms, which will allow operators in the region to access greater economies of scale when deploying their network. “Pyramid expects UMTS/HSPA to be the primary access platform for mobile broadband services over the next five years, which will dominate high-speed mobile connectivity in Latin America, followed in time by the next dominant mobile broadband platform, LTE,” says Jimenez.

Second, existing CDMA EV-DO networks and the potential arrival of Mobile WiMax systems are raising the intensity of the overall battle for mobile broadband adoption. “Pyramid does not see CDMA EV-DO or Mobile WiMax as real alternatives to LTE in Latin America after 2011; however, we do expect these platforms to be options at the current 3G stage for some niche operators, playing an important role by making the overall race for mobile broadband deployments more competitive,” Jimenez explains.

Third, Pyramid expects market entrants and existing challenger operators to deploy LTE networks within the next three years, which will fuel competition and will drive up revenue. “Operators such as NII Holdings and Iusacell, as well as any new players entering the market through upcoming spectrum auctions, will seriously consider moving directly from 2.5G to LTE deployments in the near future,” Jimenez says. Accelerated rollout schedules, embedded devices and steadfast support from vendors will propel LTE subscription growth at a CAGR of 216 percent from 2010 to 2014, when there will be 137 million subscriptions worldwide.

“Combined, these catalysts will boost broadband adoption as well as total mobile revenue growth in Latin America,” says Jimenez.

Download an excerpt of this report here: www.pyr.com/downloads.htm?id=5&sc=PR061209_ILA1.3.

From 3G to LTE: Latin America’s Path to Mobile Broadband is priced at US$595 and can be purchased online here: www.pyramidresearch.com/store/ins_la_090605.htm?sc=PR061209_ILA1.3 or by contacting Jeff Claudino via email at claudino@pyr.com or telephone at +1-619-229-9940.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries-a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry’s most comprehensive market data, trusted research and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the US$3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM’s businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.unitedbusinessmedia.com.

Press contact: Jennifer Baker +1-617-871-1910 jbaker@pyr.com

Source: Pyramid Research

Jennifer Baker, +1-617-871-1910, jbaker at pyr.com