2. Agenda
• Latin America wireless developments
• Market and technology update
gy
• 3G HSPA update
• Key issues and opportunities
• Solving the digital divide with mobile
broadband
• Conclusion
www.3gamericas.org
3. 3G Americas Board of Governors
The mission of 3G Americas is to promote, facilitate and
advocate for the deployment of the GSM family of
technologies including LTE throughout the Americas.
Americas
www.3gamericas.org
4. Wireless Developments in Latin America
• In only ten years, wireless penetration has increased
from 13% to 78%
• GSM launched in 1998; today 88% of wireless users
are served by the family of GSM technologies
• Voice centric networks (2G) have migrated to voice +
data service networks (3G)
• Mobile broadband can bridge the digital divide
• Rigid spectrum allocation policies are delaying the
offering of needed 3G services
www.3gamericas.org
5. Wireless Market in the Western Hemisphere
7.3%
Global Subscriptions
4 Billion
North America
18.7% of Total Global
293 Million Subscriptions
Latin America
455 Million
455 Million
11.4% Latin America is a growth
engine for 3G in the Americas
Source: Informa Telecoms & Media, WCIS, January 2009 www.3gamericas.org
6. Mobile versus Fixed Line Growth
Latin America 1997-2009
America,
% of Population
80%
70%
60%
50%
40%
30%
20%
10%
0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Mobile Fixed
Sources: ECLAC 2005 and Informa www.3gamericas.org
7. # Wireless Growth in Latin America
Subscriptions
(Millions)
(Milli ) 1998-2008
Source: Informa Telecoms & Media, 2009 www.3gamericas.org
8. Deployment of GSM family of
technologies in Latin America
2008
2006
2003 HSPA
UMTS/
HSDPA
2001 EDGE
GPRS
1998
GSM
Source : Informa Telecoms & Media, WCIS, January 2009 www.3gamericas.org
9. Economic and Industry Indicators
GDP
(US$) % Wireless Penetration
106%
96%
91%
79%
71% 74%
61%
$19 $18
ARPU $17 $17 $13 $9 $10
S$
US$
Latin America Avg. = GDP $8,484.00 - ARPU $16 - Penetration 78% www.3gamericas.org
10. 2008 Wireless Landscape
Ten Largest Latin American Markets
g
#6
#1
Peru (19 M)
Brazil (150 M)
• VIVO 30% MARKET SHARES • Movistar 58%
• Claro 39%
• Claro 25%
Cl
#2 #7
Mexico (78 M) Chile (16 M)
• Telcel 72% • Movistar 43%
• M i t
Movistar 20% • E t l PCS 38%
Entel
#3
#8
Argentina (44 M)
Guatemala (12 M)
• Claro 35%
• Tigo 47%
• Movistar 34%
• Claro 34%
#4
#9
Colombia (41 M)
• Comcel 65% Ecuador (11 M)
• Movistar 25% • Porta 71%
• Movistar 27%
#5
Venezuela (28 M) #10
• Movilnet 41% El Salvador (7 M)
• Movistar 38%
• Tigo 36%
• Claro 26%
Source: Public Announcements, Regulatory Bodies and Informa Telecoms & Media, December 2008
www.3gamericas.org
11. Wireless Technology Growth
Latin America 2007-2008
2007 2008
Subscribers By Technology
450
400
404
350 Million
300 307
Million 4Q 4Q
250 2007 2008
200
150
100
50 53 M 42 M
21 M 11M
0 GSM/HSPA Others
Others
CDMA
(TDMA, iDEN)
Source: Informa Telecoms & Media, WCIS, January 2009 www.3gamericas.org
12. 2008 Technology Market Share
Others CDMA GSM Percentage Total Subscribers
89% 150 M
88% 78 M
97% 44 M
98% 41 M
43% 28 M
91% 19 M
Subscribers
(Millions)
Source: Informa Telecoms & Media, WCIS, January 2009 www.3gamericas.org
14. UMTS-HSPA Deployments
in Latin America and the Caribbean
Panama Puerto Rico Dominican Republic
• Movistar • AT&T • Claro
• Claro
Cl
Mexico
• Telcel Aruba Jamaica
• Movistar Nicaragua • SETAR • Claro
• Claro
Guatemala
• Cl
Claro Venezuela
• Tigo • Movistar Brazil
Honduras • Brasil Telecom
El Salvador • Claro • Claro
• Claro • Tigo • CTBC
• Tigo • Oi
• Sercomtel
Se comtel
• TIM Brasil
Colombia • VIVO
• Comcel
• Movistar Peru Paraguay
• Tigo Bolivia
• Claro • Claro
• Tigo
Ecuador • Telecom Personal
• Porta • Tigo
Chile
41 UMTS-HSPA • Entel Movil Argentina Uruguay
• Claro • Claro • ANCEL
Networks in • Movistar • Telecom Personal • Claro
Service in 20 • Movistar • Movistar
countries
Source: Public Announcements, Regulatory Bodies and Informa Telecoms & Media, Dec 2008 www.3gamericas.org
15. New opportunities
Latin America & Caribbean
• Low ARPU: Average US $ 16
• Mobile penetration: 78%
• Average data contribution (VAS) to ARPU:
o 14% Vs. 23% in North America
• Low 3G UMTS-HSPA penetration:
UMTS HSPA
o 1%, but already 41 UMTS-HSPA networks in 20 countries
• Limited broadband access
• Low PC penetration
• 1700/2100 700 and 2500 MH spectrum b i
1700/2100, d MHz t being
considered for advanced wireless services
www.3gamericas.org
16. Data Contribution to ARPU
3Q 2008
Data contribution to ARPU has reached
an average of 14% in Latin America and
VOICE 23% in North America
DATA
31% 27% 18% 16% 11% 10% 8% 5%
Source : Informa Telecoms & Media, Merrill Lynch, December 2008 www.3gamericas.org
18. Total Licensed Spectrum for
Mobile Services MHz (mid-2008)
Services,
353 358
294
265
200
170
140
120 120
Source: Arthur D. Little Spectrum Caps Report, Jan 2009 www.3gamericas.org
19. Understand Spectrum Caps and Future
Wireless Demand
Current Number of operators per market required to meet future
Spectrum Cap, broadband demand under current spectrum caps, as a
Country MHz function of total spectrum requirements in MHz
430 (Citel)
( ) 540 (U.K.)
( ) 720 (ITU)
( )
Argentina 50 9 11 15
Brazil 80 6 7 9
Chile 60 8 9 12
Colombia 40 11 14 18
Mexico
M i 60 8 9 12
Source: Arthur D. Little Spectrum Caps Report, Jan 2009 www.3gamericas.org
20. Operator Spectrum Holdings
Country/Region/ Spectrum Holding per
Operator,
Operator MHz Spectrum Cap
p p
Operator
EU Average 92.6 No
Germany 65 No
UK 82.2 No
France 138.5 No
Italy
ta y 72.7 No
o
Spain 100.6 No
Sweden 92 No
Denmark
D k 118.4
118 4 No
N
US – Verizon National Average ~89 No*
US – AT&T National Average ~96 No*
US – T-Mobile National Average ~75 No*
*Includes results of 2008 700 MHz auction; FCC has current screening guideline of 95MHz
Source: Arthur D. Little Spectrum Caps Report, Jan 2009 www.3gamericas.org
21. Selected Spectrum Caps
in Latin America
Spectrum
y
Country Comments
Cap, MHz
C MH
Has recently announced it will license 1.7/2.1 GHz band in
Argentina 50 2009
Increased f
from 50 to 80 for the recent (end-2007) new 3G
f ( ) G
Brazil 80 spectrum auction. Planning structure of 2.6 GHz band
January 2009 Supreme Court decision of maintaining 60
MHz Cap excludes existing operators with 60 and 55 MHz
Chile 60 from new 3G 1.7/2.1 GHz spectrum auction. Planning
structure of 700 MHz and 2.6 GHz band
This cap is even tighter than those in other countries in
p g
Colombia 40 Latin America. The 1.7/2.1 GHz (AWS) band has been
reserved for 3G broadband services
Licenses for some 1900 MHz spectrum awards cannot be
Mexico 65 issued b
i d because of C
f Competition C
titi Commission’s 35 MH
i i ’ MHz
band-specific cap
Source: Telefonica, National Regulators’ Websites, Comision Federal de Competencia (Mexico) ; Arthur D Little Spectrum Report, Jan 2009
www.3gamericas.org
22. Mobile Broadband Success
Factors: Bridging the Divide
• Coverage
• High speeds
• Multiple low cost devices
• Applications and content
A li ti d t t
• Pricing
www.3gamericas.org
23. Application and ServicesTrends
SMS = 75‐80% of VAS revenues
Wallpapers
W ll
Streaming Music
Mobile TV
M
www.3gamericas.org
24. The Internet in Your Hands:
Ingredient for Success
From 2007-2012 Worldwide Smartphone OS-Based
phones will grow a more than 30% annual rate
Source: In-Stat, Nov 2007
Global unit volume sales of smartphones
exceeds the unit sales of laptops!
Source: In-Stat, Nov 2007
In Stat,
www.3gamericas.org
25. Top Ten Mobile Websites:
Access for All
Millions
Source: The Nielsen Company, October 2008
www.3gamericas.org
26. Conclusion
• Latin America is a growth engine for 3G in the
Americas
• More spectrum is needed to bridge the digital
divide and offer new mobile broadband services
• Low cost devices and smart phones coupled with
new spectrum are key ingredients to bridging the
digital divide in the region
• GSM/HSPA/LTE is the future proof roadmap to
benefit users due to the economies of scale and
continuous technology evolution
www.3gamericas.org
27. Comments? Questions?
Erasmo Rojas
Director, Latin America & Caribbean
Director Latin America & Caribbean
3G Americas
erasmo.rojas@3gamericas.org
