ICT & Media

Latin America Operators Turn to Multiplay Packages and Bundles as Market Intensifies

  • PYR24082
  • 21 Pages
  • June 2013
  • ICT & Media
Summary
Relatively low multiplay penetration in Latin America ? 28% at year-end 2012 ? provides operators with compelling opportunities to enter new markets and launch bundles, including by partnering with complementary service providers, such as DTH/satellite providers, or moving into OTT video. Many are also keen to invest substantial resources to incorporate mobile voice, mobile broadband and Wi-Fi into their commercial offerings.

Key Findings
Evidence shows that through multiplay packages, operators can reduce subscriber churn as well as improve ARPS and generate incremental revenue. The relatively low household multiplay penetration levels in Latin America ? 28% as of the end of 2012 ? provide service operators with compelling opportunities to enter new markets and launch multiplay packages. Government policies play an important role in shaping operators' bundling strategies. Service providers operating in countries where regulatory bodies restrict them from offering a specific service have forged commercial agreements with complementary service providers to bundle their services. The emergence of a DTH-satellite wholesale business model is lowering entry barriers for players trying to launch operations in new markets or commercializing pay-TV services bundled with other telecom services. As a result, DTH TV will soon become the most adopted pay-TV technology in the region, surpassing cable. Faced with declining revenue and market saturation in their core segments and with the need to develop new revenue streams and subscriber loyalty, operators in Latin America are keen to invest substantial resources to incorporate into their commercial offerings mobile voice, mobile broadband and Wi-Fi. Given the prospects of increasing broadband penetration in the region, major operators are moving into the OTT video business by developing their own platforms. These operators could soon be incorporating OTT video in their bundled offers.

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