Communications review: Exploring telecom markets in Latin America Volume 16, No. 2

With a global circulation of over 13,000, PwC's quarterly journal for communications executives is regarded as a "must-read". Communications Review showcases some of the best global practices and leading-edge thinking regarding management and financial issues in the communications industry. Articles are authored by partners in PwC's communications industry practice.

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Message from the editor

Colin Brereton

Welcome to the latest edition of Communications Review. This issue is published on the heels of our annual Global Communications Forum, where speakers and participants engaged in lively, insightful debates on the event’s overarching theme, ‘Visualising 2015’. They discussed the opportunities, challenges and concerns communications operators face as they prepare for an alwayson, globalised world dominated by digital technologies.

 

Features

Rapid growth heralds a bright future

For almost 20 years, the Latin American telecoms sector has undergone a transformation that is making it one of the most watched markets in the industry today. Fuelled by government privatisations and liberalisations throughout the region in the 1990s, the telecoms sector has been experiencing a growth spurt that just won’t stop. The opportunities are attracting competition and investment not only from within the region, but also from operators abroad.

Market profile: Brazil

The political and economic stability in Brazil over the last few years has been critical in the growth of the telecom market. The increased purchasing power of the poorer classes of the population has significantly changed Brazilian consumption standards—both qualitatively and quantitatively—and has positively affected the industry. The National Broadband Plan, MVNO regulation, and new laws for cable TV provision are some of the recent changes that will bring even more opportunity and growth to this exciting market.

Market profile: Chile

Despite the economic downturn and an earthquake in early 2010, the telecoms sector is performing better than are other sectors of the Chilean economy. The prepaid mobile sector is expanding, and more-positive government policies are encouraging investment in communication services and infrastructure. Although sector growth in Chile does face some hurdles, opportunities ranging from developing mobile apps in Spanish to outsourcing and sharing network infrastructure far outweigh the risks.

Market profile: Mexico

Currently, the telecom market in Mexico is highly agitated. Competition among major players has increased, and some competitors have come together with the objective of opening competition in the sector. Mexico is highly urbanised, and its young, tech-savvy customers are stimulating greater demand for the latest products and services. With regulatory changes and government plans to help stimulate usage and penetration on the horizon, opportunities await operators in fixed and mobile broadband, bundling and cable TV services.

Perspectives

Ernesto Gardelliano
Movistar Argentina

Movistar’s Chief Executive Officer Ernesto Gardelliano talks about where he sees value coming from in the future and what the new regulations mean for the market. He shares how innovation and a dynamic business model will help Movistar maintain its leading position in Argentina’s increasingly competitive mobile market.

Sergio Chaia
Nextel Brazil

Its competitors are well aware that focusing on relationships is what differentiates Nextel Brazil. President and Chief Executive Officer Sergio Chaia discusses how the company will build on its relationships to continue growing rapidly into new segments— through new technologies, service offerings and social networking.

Adrián Calaza
Telecom Argentina

Being a fully integrated operator with a leading market position in fixed, mobile and broadband as well as information and communications technology brings competitive pressures from every front. Telecom’s Chief Financial Officer Adrián Calaza discusses how the company uses differentiation to gain—and retain— customers as new services, operators and regulations change the market.