July 07, 2009
Latin American Telecom, Entertainment Industries Shift IPTV Business Models: Study
By Jessica Kostek, TMCnet Channel Editor
Latin America, as much as any region, has seen major improvements in technology during the past decade.
Spain's Telefonica, for example, has been steadily expanding its mobile footprint, offering text-to-speech on many cellular devices. Educational systems in Latin America – a region where, according to one study, Siemens (News - Alert) leads the enterprise telephony market – are also improving because of technologies being introduced to the region. Also, Nokia and Telefonica partnered to deliver educational programs to rural areas in the region and promote social development.
Other industries being technologically developed include telecommunications and entertainment. A “major shift in business models,” according to Frost & Sullivan, will bring new services such as Internet protocol television – or “IPTV (News - Alert)” – new competitors, and new challenges that include digital distribution of content.
The firm’s analysis – titled “Internet Protocol Television - Is Latin America Prepared?” – finds that IPTV services could reach 2.2 million subscribers in Mexico in 2012.
“Currently, broadband penetration allows IPTV to be deployed efficiently and some Latin American countries are beginning to provide the service,” saidFrost & Sullivan Consultant Jose Manuel Mercado (News - Alert). “However, legal barriers and continued lack of infrastructure in some countries in the region are slowing the pace of its use.”
Today, service providers in Brazil and Argentina don’t have regulatory approval to offer IPTV service, which in turn limits TV options. In other nations, such as Mexico, with a widespread broadband penetration, only one company, with limited clients, provides the service, while the incumbent Telmex (News - Alert), with almost 5 million accounts, does not have the legal approval to offer the service, said the analysis.
“IPTV is a key opportunity for operators not merely for the revenues it could generate, but also as the best method for service providers to increase their subscriber base, incorporating quadruple services to their clients, and providing value-added services in a sector where the average revenue per user decline is beginning to affect operators,” said Mercado. “WiMAX deployment is a better way to offer the service to rural and marginal areas in Latin America.”
“Internet Protocol Television – Is Latin America Prepared?” is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Mexican Telecommunications Services Markets, IPTV in Latin America, VoIP in Latin America 2008, and Latin America Data Communications (News - Alert) Services Markets.
The firm’s analysis – titled “Internet Protocol Television - Is Latin America Prepared?” – finds that IPTV services could reach 2.2 million subscribers in Mexico in 2012.
“Currently, broadband penetration allows IPTV to be deployed efficiently and some Latin American countries are beginning to provide the service,” saidFrost & Sullivan Consultant Jose Manuel Mercado (News - Alert). “However, legal barriers and continued lack of infrastructure in some countries in the region are slowing the pace of its use.”
Today, service providers in Brazil and Argentina don’t have regulatory approval to offer IPTV service, which in turn limits TV options. In other nations, such as Mexico, with a widespread broadband penetration, only one company, with limited clients, provides the service, while the incumbent Telmex (News - Alert), with almost 5 million accounts, does not have the legal approval to offer the service, said the analysis.
“IPTV is a key opportunity for operators not merely for the revenues it could generate, but also as the best method for service providers to increase their subscriber base, incorporating quadruple services to their clients, and providing value-added services in a sector where the average revenue per user decline is beginning to affect operators,” said Mercado. “WiMAX deployment is a better way to offer the service to rural and marginal areas in Latin America.”
“Internet Protocol Television – Is Latin America Prepared?” is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Mexican Telecommunications Services Markets, IPTV in Latin America, VoIP in Latin America 2008, and Latin America Data Communications (News - Alert) Services Markets.
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Jessica Kostek is a channel editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.
Edited by Michael Dinan
