Communications and Technology Industry Research

According to a new analysis from Frost & Sullivan, the Latin American telecommunications and entertainment industry is undergoing a major shift in business models. This shift brings along new services like Internet protocol television, or IPTV (News - Alert), new competitors and new challenges that includes digital distribution of content.

 

IPTV refers to the delivery of digital television and other audio and video services over a broadband data network. Live and on-demand digital television and video services are delivered through set-top boxes and similar devices to television sets or personal computers in standard and high-definition formats. IPTV is a method for streaming video content to the user over the unsecured Internet.

 

The new analysis from Frost & Sullivan (News - Alert) is titled “Internet Protocol Television - Is Latin America Prepared?” According to the analysis, IPTV services are expected to reach 2.2 million subscribers in Mexico by 2012 if the incumbent company has the legal attributes to provide these services within its portfolio.

 

Currently, broadband penetration lets IPTV be deployed efficiently. Some of the Latin American countries have started to provide this service to its consumers. According to Jose Manuel Mercado, a consultant at Frost & Sullivan, the use of IPTV slows because to the legal barriers and lack of infrastructure in some countries in the region.

 

IPTV is ideal for service providers to increase their subscriber base by incorporating quadruple services to their clients and providing value-added services. Mercado also added that wireless-integrated multiple access, or “WiMAX (News - Alert)” deployment is a better way to offer the service to rural and marginal areas in Latin America.

 

Service providers in Brazil and Argentina have not gained regulatory approval to offer this service. This limits the pay TV options of consumers and also restrains competitiveness. In some countries, like Mexico, that have a widespread broadband penetration, only one company with limited number of clients provides the IPTV service. On the other hand, the incumbent Telmex (News - Alert) which has almost 5 million accounts does not have the legal approval to offer the service.

 

The analysis is part of the Communications Services Growth Partnership Services program. The program also includes research in Mexican Telecommunications Services Markets, IPTV in Latin America, VoIP in Latin America 2008, and Latin America Data Communications (News - Alert) Services Markets.

 

Frost & Sullivan partners with clients to accelerate their growth. The research services included in subscriptions provide market opportunities and industry trends that have been evaluated following extensive interviews with market participants.