Spectrum Auctions in Latin America Will Trigger Massive Broadband Subscription Growth, Pyramid Research Finds

CAMBRIDGE, Massachusetts - 3G and WiMax spectrum auctions in Latin America will trigger massive broadband subscription growth, from 9 percent at year-end 2008 to 70 percent at year-end 2014, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in Latin America analyzes the impact of the upcoming spectrum auctions on the competitive environment of markets in Latin America and the expansion of broadband services in Latin America, identifying some of the opportunities that will open for industry players and subscribers. The 15-page report includes case studies of Chile, Brazil, and Mexico, examining each market in more detail. Download an excerpt of this report here: pyramidresearch.com/downloads.htm?id=5&sc=PR041409_INLA1.2

Fixed broadband penetration in Latin America, which stood at 5.0 percent at year-end 2008, is roughly 30 percent below the global average of 6.5 percent, while 3G mobile penetration, at 3.4 percent, also ranks well below the global average of 7.8 percent, notes Jose Mario Lopez, Research Manager at Pyramid Research and co-author of the report. “Understanding the link between broadband adoption and economic development, governments throughout Latin America have made broadband deployment a central theme of their political agendas,” he says. “Regulators now look to accelerate the award of broadband spectrum, specifically WiMax and 3G, to close the connectivity gap and inject additional competition into the market — this will, in turn, reduce prices, extend coverage to underserved areas, and make more bandwidth capacity available for the introduction of robust Internet applications,” he adds.

Much of the spectrum that regulators have awarded has ended up in the hands of the region’s two main operators, Telmex and its international spinoff Telmex International. In an attempt to encourage the entry of new players in the market through upcoming 3G and WiMax auctions, regulators in Venezuela, Chile, and Mexico are establishing strict limits on incumbents or current frequency holders, encouraging participation by new market entrants.

“The impact of new players will come less from their direct contribution to overall line buildouts but rather from the response that they will elicit from existing, larger market players,” says Lopez. “By introducing services targeting new geographies and new customer segments, and potentially stealing customers away from larger market players, new entrants will force existing operators to lower prices to extend their network reach and to innovate with new services and applications,” he explains. The result will be an expansion of Latin America’s broadband subscriber base from 48 million at year-end 2008 to 426 million at year-end 2014, a compound annual growth rate of 44 percent. Pyramid Research expects a full 87 percent of broadband net additions to come from mobile platforms, either 3G or WiMax.

Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in Latin America is part of Pyramid Research’s Latin America Telecom Insider report series. Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions.

Download an excerpt of this report here: pyramidresearch.com/downloads.htm?id=5&sc=PR041409_INLA1.2

Upcoming 3G/WiMax Auctions to Trigger a Broadband Access Revolution in Latin America is priced at US$595 and can be purchased online here: pyramidresearch.com/store/ins_la_090407.htm?sc=PR041409_INLA1.2 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 of Pyramid Research, +1-617 871-1910, jbaker at pyr.com