Pyramid Research Latin America Telecom Insider -...

© PYRAMID RESEARCH 2011 ID#1000

HIGHLIGHTS Pyramid Research expects smartphone sales in Latin America to grow 75.7% in 2011, equaling 31m smartphone units sold and US$6bn in revenue. Smartphones are the fastest-growing handset category across the region. Pyramid Research predicts smartphone unit sales to grow at a 30% CAGR between 2011 and 2016. Subscriber growth slowdown has mobile operators assigning resources to data revenue-generating initiatives. The ownership of a smartphone is highly correlated with mobile data usage. To increase their smartphone subscriber base and drive data revenue, operators are widening their smartphone offers with an increasing variety of plans and subsidies. In Latin America, on average, the prepaid base represents 82% of total mobile subscriptions; to take advantage of the entire market, operators are tapping the prepaid segment with prepaid data plans. Competition among handset manufacturers is pushing prices down. Smartphone ASP in the region has dropped 30.5% since 2008. Pyramid Research expects $100 smartphones (sell through) to come to market in 2012. Crossing the $100 line will be the determinant to increase smartphone adoption in the region. Mobile subscriber growth, combined with economic growth and the increased popularity of social networks, represents a mix that will support smartphone growth in the region.

Vol. 3, No. 6, November 2011

Pyramid Research

Latin America Telecom Insider

Operators and Vendors Aim Smartphones at the Mass Market

TABLE OF CONTENTS

INTRODUCTION 2 A. Operators are making efforts to increase their smartphone installed base 3 B. Prepaid data plans have increased smartphones’ addressable market 5 C. A widening smartphone portfolio accompanied with price decreases drive smartphone adoption 6 D. Apps drive smartphone growth 8

MARKET DETAIL 11 CASE STUDY: BlackBerry Messenger 11 CASE STUDY: Prepaid data plans 12 CASE STUDY: Smartphone for teenagers 13

CONCLUSIONS 14 Key findings 14 Recommendations 14

RELATED RESOURCES 16

© PYRAMID RESEARCH | LATIN AMERICA TELECOM INSIDER VOL. 3, NO. 6 2

Introduction The past two years have drastically reshaped the mobile phone market around the world. Smartphone adoption in North America and Europe is already at around 50%, and they have become the main source of growth for handset vendors and other software companies, such as Google. Those that have failed to rapidly adapt are struggling to keep profits afloat. Nokia, the top handset maker in the world, is quickly losing market share due to its slowness to adapt to the smartphone market. The iPhone revolutionized the industry, making smartphones a product for regular consumers and not just business people. Google then launched its Android operating system, offering a way for vendors such as Motorola, Samsung, LG, Huawei and others to indirectly join forces to compete in the market. As the market continues to evolve, all market players ― vendors, operators and developers ― are trying to grab a piece of the smartphone revenue pie. In 2011 smartphone sales will represent almost $116bn worldwide. Latin America was initially a laggard in smartphone adoption. In 2008 smartphones sales represented only 3% of total handset sales in the region. After successfully weathering the world economic crisis, the region bounced back in 2010 stronger than ever. In 2010 the smartphone market in Latin America grew 117%, and total handset sales grew 17%. Pyramid Research expects smartphone unit sales in the region to grow at a CAGR of 30% in the next five years. By 2016, we expect smartphone sales to account for roughly 46% of total handset sales in the region.

Exhibit 1: Latin America smartphone sales as percentage of total handset sales, 2008–2016

Source: Pyramid Research

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Smartphones are the fastest growing handset category in Latin America

Smartphones are the fastest growing handset category in Latin America. Pyramid Research expects smartphone unit sales to grow at a 30% CAGR between 2011 and 2016, compared with a 7% CAGR for overall handset sales during the same period. Smartphones have become essential to the mass market strategies of operators and handset vendors alike. End users have responded positively to the wide variety of smartphone models available in the market and a steep decrease in price. Demand is getting more sophisticated and continues to grow as end users experience an increasing need to stay connected. Pyramid Research expects smartphone sales in Latin America to grow 75.7% in 2011, representing an opportunity of more than 31m smartphone units sold. That amounts to $6bn in revenue. This growth will be driven by operator efforts to increase data revenue, as well as by vendor competition, smartphone price decreases and customers’ growing need to stay connected. The adoption of social networks and mobile applications will play a defining role in smartphone adoption. (See our Latin American Insider ―Mobile Social Networks Set to Experience Rapid Growth as Mobile Penetration Rates Rise,‖ for more.)

A. Operators are making efforts to increase their smartphone installed base Most operators in Latin America have been solely focused on acquiring new subscribers, but as markets reach 100% penetration, subscriber growth has slowed down and operators are looking for new ways to increase revenue. Mobile penetration in Latin America’s mobile market surpassed 100% in 2010, and Pyramid Research expects mobile penetration to reach 132% in 2016. With many markets such as Argentina, Brazil, Chile and Colombia already at 100%, the market is saturating and subscriber growth is reaching a plateau. In 2007 mobile subscriptions in the region grew 23.5%, growth in 2011 will be 10% and by 2016 it will have slowed down to 3%. The growth slowdown has mobile operators focusing on growing revenue from mobile data. The ownership of a smartphone is highly correlated with mobile data usage. To increase their smartphone subscriber base and drive data revenue, operators are enhancing their smartphone offers with an increasing variety of plans and subsidies. To increase their smartphone subscriber base, operators across the region are adopting two main two strategies: The first one is offering basic connectivity with basic data plans that in most cases just include email. The other is offering attractive subsidies on smartphones attached to the most expensive data plans, those that come with unlimited data usage. Exhibit 2 illustrates the magnitude of these subsidies. For example, Telcel in Mexico and Entel in Chile offer a free iPhone when people sign up for a full data plan on a 24-month contract. Smartphones play a crucial role in helping operators tie customers to long-term commitments and thus control churn. Subsidies are not limited to the costliest data plans. Operator in the region have many options with data plans, ranging from those that only offer email access, to those that offer email plus social networks, to those that offer full access. On average, a smartphone on a medium-level data plan costs 25% less than a fully priced handset sold with no plan attached. For higher-level data plans, smartphone prices can be 50% to 100% lower than smartphones sold without a data plan.

http://www.pyramidresearch.com/store/ins_la_111025.htm



Exhibit 2: Service plans and handset prices for select operators, October 2011

Country Operator Handset Plan price range

(USD) Handset price

(USD)

Mexico

iPhone 4 (16GB) Prepaid $ 788

iPhone 4 (16GB) $ 139 Free

BlackBerry 9300 Prepaid $ 337

BlackBerry 9300 $ 134 Free

Brazil

iPhone 4 (16GB) $ 267 $ 1,090

iPhone 4 (16GB) $ 384 $ 342


BlackBerry 9300 $ 195 $ 280

Colombia


iPhone 4 (16GB) $ 163 $ 419


BlackBerry 9300 $ 99 $ 141

Chile


iPhone 4 (16GB) $ 127 $ Free


BlackBerry 9300 $ 97 $ 148

Source: Operators

Heavy subsidizing has the inherent risk of a negative effect on revenue. Operators have to carefully balance the trade-off between increasing service revenue and decreasing handset revenue. For some operators, the risk has paid off, with more subscribers attracted by handset subsidies and increasing mobile data revenue. Telcel in Mexico is offering subsidies across its entire smartphone portfolio. The operator has an incredible breadth of data plans that includes 10 different flavors of their ―social media‖ plan. Subscribers can get a free smartphone starting with the second basic social media plan (Mas por Menos Social Media 1 at around $42/month) if they sign up for a 24-month contract. America Móvil, Telcel’s parent company, is using subsidies in most of the markets where it operates with special focus on its biggest markets: Brazil and Mexico. As of the second quarter in 2011, the operator increased its year-on-year subscriber base by 11.7%. Mobile revenues increased 9.4%, driven by mobile data revenue that increased 26.7% over revenue registered in the second quarter of 2010.


Exhibit 3: Latin America mobile data revenues as a percentage of total revenue, 2008–2016


B. Prepaid data plans have increased smartphones’ addressable market In Latin America, on average, the prepaid base represents 82% of total mobile subscriptions. Historically prepaid users have not been heavy data users, so operators in the region are pushing data usage through prepaid data plans. In the Prepaid data plans Case Study, we discuss the origin of prepaid data plans. The barrier to postpaid plans in Latin America lies not only in the spending capacity of potential users but in the operator’s process of approving a postpaid customer. In Latin America the process of being approved for a postpaid plan is similar to applying for a mortgage. Requirements such as credit history and proof of employment are hard to come by in a region with low bancarization and high informal employment. These requirements decrease the addressable market considerably. Even though some operators have been successful increasing its postpaid base, such as Movistar from 17% in 2009 to 20% in the second quarter of 2011, the balance is going to most likely stay tipped in the prepaid segment. To take advantage of the full market, operators are shifting their strategies to increase data ARPU by tapping the prepaid segment. Prepaid is a tool to retain clients and attract customers that cannot commit a fixed amount of money every month. For example, these could be clients with unstable incomes or those who’ve experienced changing financial circumstances such as the loss of a job. These clients might have to give up their postpaid data plan but can keep using a smartphone and use data on a pay-as-you-go basis. Operators that have alternatives for these types of clients decrease the likelihood of losing subscribers when their circumstances improve. Prepaid data pans are designed to lure prepaid users into postpaid data plans and to increase ARPU from those that cannot have a postpaid plan. The prepaid concept for the data world is a lot more complex than it is in the voice world. With voice there is an evident relationship between credit and minutes. The cost of a voice minute doesn’t depend on the amount of words are exchanged in that minute. In data, credit not only depends on time but also on the amount of information transmitted, and that amount of information depends on an infinite number of variables. In data, a unit of credit doesn’t

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have an exact equivalent. A unit of credit can be an email or a quarter of an email or a part of a photo. When packaging prepaid data, operators need to consider three factors: time, capacity and service.

Time: This is the time the user has to use the credit ― a month, one week, one day.

Capacity: The amount of data in megabytes (MB) that can be consumed with the amount of credit.

Service: What the credit may be used for ― full access, email only, instant messaging, social networks, etc.

Creating prepaid data packages is a balancing act. Operators have to make sure their prepaid data options are not too similar to postpaid data plans in order to avoid postpaid users moving to prepaid. To support data plans growth in the region, operators have been expanding their 3G+ network. Most countries in the region, with the exception of some Caribbean countries such as Cuba and Haiti, have 3G networks. Pyramid Research estimates that by 2014, 3G subscriptions will account for 51% of total subscriptions in Latin America. Economic growth and low levels of fixed broadband penetration (9% regionally) generate a great opportunity for mobile operators. Low fixed Internet penetration is partly influenced by the high prices of computers. Thanks to low fixed Internet penetration combined with greater network coverage of mobile networks, the first way many Latin Americans have accessed the Internet is through a mobile device. Smartphones and other mobile devices typically have lower price points and are more portable, making them accessible to more people. The proliferation of 3G networks in the region is an important driver for smartphone penetration.

C. A widening smartphone portfolio accompanied with price decreases drive smartphone adoption Pyramid Research expects that during 2011 there will be more than 31m smartphones sold, representing $6bn in revenue. The revenue generated by smartphones sales will grow at a CAGR of 18% throughout 2016. Vendors already know the great opportunity in front of them and will continue to launch products that satisfy consumer needs. In the past two years, the availability of products in different price ranges, styles and brands has grown exponentially. The average selling price (ASP) in the device market is trending down. Handset ASP in the region has dropped 15.4% since 2008, while smartphone ASP has dropped 30% since 2008. Pyramid Research expects that smartphones at $100 price points (sell through) will come to market in 2012. Crossing the $100 line will be important for increasing smartphone adoption across the region. Chinese manufacturers such as Huawei, ZTE and Alcatel are heating up competition in the market, introducing devices at very affordable prices. This price erosion reduces the distance between consumers and smartphones. Even higher-end devices have experienced steep price decreases. Latin American operators are most likely going to follow the pricing strategies of the developed world. As more products enter the market, smartphones will become less expensive. We expect to see operators in the region replicate smartphone strategies such as the iPhone pricing in the US. When the new iPhone 4S hit the market, some older models, like the iPhone 3GS, became instantly free with two-year contracts. Such aggressive strategies are made in partnership with vendors that want smartphones in different price points to satisfy customers from all levels.


Exhibit 4: Latin America smartphone average selling price, 2008–2016


The increased levels of competition in the market have heavily influenced price decreases in the region. Most vendors are putting special focus on the region. Samsung has experienced tremendous success: In 2008, the manufacturer was fifth in total handset unit sales, far behind Nokia and Motorola. By the end of 2011, however, Samsung will be second in the market in unit sales, with 25% of the market, very close to Nokia, which will close the year with 27% market share. If Samsung continues this trend, it will be on top by the end of 2013. Samsung’s growth in the region has been supported by important marketing investments and a consistent effort in different countries to be closer to operators and other distribution channels such as retailers. Looking at the smartphone segment, RIM continues to be the leader, but recent service interruptions and the increased availability of smartphones with a wide variety of designs and price points is threatening the manufacturer’s position in the region. Nokia is second in the smartphone market but has been losing ground due to its failure to adapt rapidly to the smartphone ecosystem; its share in the smartphone segment dropped from 38% in 2009 to 20% in 2011. Samsung has made a lot of progress in the smartphone domain: Its share went from a mere 3% in 2009 to 14% in 2011. We expect Samsung’s smartphone unit sales to grow at a CAGR of 42% in the following five years, making it the leader of the smartphone category with 22% market share in 2016.

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Exhibit 5: Latin American smartphone market share, select vendors, 2011 and 2016


Android is also experiencing tremendous growth in the region thanks to the availability of cheaper Android devices from Chinese manufacturers and the growth of Samsung and LG. The combined effort of Android vendors and Google has caused an important shift in Latin American operators’ perception of Android. The possibility to customize the user interface and preinstall operator-branded app stores on Android devices has fostered sales of Android devices. Pyramid Research expects Android to be the top-selling operating system in the region in 2011 with 33.2% market share. We expect Android to continue to be the market leader through 2016. We anticipate that Nokia’s Windows Phones, with the leverage of the Nokia distribution channels and knowledge of the region, will enter the market in 2013 with some interesting products for the low-tier segment. By 2016 we expect Windows Phone to be the second most popular operating system with 25% share. Android will continue to be the leader with 44.8% share.

D. Apps drive smartphone growth Latin America’s mobile penetration exceeded 100% in 2010, but there is still room for growth. Intensifying competition will drive penetration up to 132% in 2016. Handset prices and a wide variety of data plans are not the only factors that attract mobile users to smartphones. Mobile subscribers are becoming more sophisticated and are developing new connectivity needs that will influence smartphone adoption. Price and apps are the most important factors that consumers consider in their smartphone buying decisions. The services that smartphones can provide (including the apps available on those smartphones) are a key sales driver. In Latin America culture influences the need to communicate constantly. Smartphone apps satisfy those needs by providing different ways to communicate. Email, short messaging and social networks are becoming more popular in the region. As more people join in, network effects pull more users into smartphone adoption. In the region, 22% of social network users are also mobile social network users. Operators are so conscious of this situation that they have developed social network data plans.

Nokia 20%

Samsung 14%

LG 10%Sony

Ericsson 9%

RIM 28%

Apple 7%

Motorola 6%

HTC 1% Others 6%

2011

Nokia 15%

Samsung 22%

LG 15%

Sony Ericsson

5%

RIM 18%

Apple 10%

Motorola 6%

Huawei 1%

ZTE 1%

HTC 1%

Others 6%

2016


Despite low Internet penetration, Facebook is extremely popular in Latin America. In our recent Insider, we discuss in-depth mobile social networks in Latin America. The region accounts for approximately 8% of the world’s population and 10%, roughly 120m, of Facebook users. In Brazil, Orkut — a social network similar to Facebook — is the dominant player. Twitter’s popularity has substantially increased in the region in the past two years. From the total 93m unique visitors Twitter had in June of 2010, 16% (15.4m) came from Latin America. That is a 305% increase from the same month in 2009. The network attracts the most mobile users in Latin America. In fact, 36% of Twitter users in the region use the Twitter application from their mobile device. Operators have also identified younger generations’ thirst for data. They are natural social network users, but they also take mobile data to the next level with high consumption of games and video through their mobile devices. In the Smartphone for teenagers Case Study, we discuss some of the strategies that operators in the region are using to target this demographic.

Exhibit 6: Tigo, Social Networks data plan

Source: Tigo, Colombia

The killer app that has driven smartphone sales in the region is BlackBerry Messenger (BBM). We discuss the experience with BBM and its impact on BlackBerry sales in the region in the case study below. Mobile subscriber growth, combined with economic growth and the increased popularity of social networks, represents a mix that will support smartphone growth in the region.



Exhibit 7: Latin American mobile subscriptions, 2008–2016


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Market detail

CASE STUDY: BlackBerry Messenger Besides its strength in the enterprise segment, BlackBerry holds a large share of the smartphone market in Latin America thanks to BlackBerry Messenger. Pyramid Research expects BlackBerry to close the year with 28% market share in the smartphone category in the region. There are some countries in the region where BlackBerry is by far is the dominant player in the smartphone market ― notably Venezuela (60%), Colombia (51%), Ecuador (50%) and Mexico (40%). The Venezuelan market was an early smartphone adopter. When Venezuelans started seeing BlackBerrys used in the corporate world, they identified BlackBerry as a status symbol. The Venezuelan consumer is very aspirational and puts a lot of value on brands. The high cost of a Blackberry, between $400 and $1500, which is considerably high for most of Venezuelans, doesn’t seem be an obstacle for smartphone adoption in the country. Consumers have shown a high willingness to spend money on the device. Brand awareness is not the only reason that consumers are attracted to BlackBerry: The manufacturer’s instant messaging app, BBM, allows users to be connected with a lot of ―friends‖ at the same time and to send text messages to each other without paying additional charges for each message they send. In Latin America, BBM deserves credit for most of the traction that the brand has in the market. First-time users came on board seeking status, but as more and more users joined the BlackBerry club, the network effect started to pull in even more users. This dynamic was replicated in Mexico, Colombia and the Caribbean. Today it is no surprise that in those countries people ask for your PIN (personal identification number) number instead of asking for your phone number. BlackBerry Messenger took BlackBerry from the enterprise market to the consumer market. It is BlackBerry’s best selling point; its adoption is so widespread that operators have data plans for BlackBerry chat only.

Exhibit 8: Mobile subscriptions, Latin America, 2008–2016

Source: Operators Comcel, Colombia


A recent service disruption left millions of customers voicing their frustrations on social networks, hurting the brand’s future performance. This collective frustration is also evidence of the dependence users have on the device.

CASE STUDY: Prepaid data plans Some of the first prepaid smartphone initiatives arose in the Caribbean. Operators identified an opportunity in the tourist market. When American and European tourists were visiting, they found themselves missing a connected smartphone. They were trapped in the dilemma of desperately needing data connection but not wanting to incur expensive data roaming costs. The solution was trying to find local alternatives. When they started to ask about short-term data plans, operators jumped in with prepaid data plans and smartphones for vacation. Then local demand followed. Prepaid smartphones are a great alternative for low-income, aspirational consumers. With a prepaid base averaging 82% in most countries of the region, more and more operators started to pick up the idea. BlackBerry is the strongest player in the prepaid market. The BlackBerry Messenger’s traction permeates the prepaid segment, attracting prepaid customers to the BBM network. It is not a surprise that prepaid data plans for prepaid smartphone users are more common in the Caribbean and in Venezuela, Mexico and Colombia ― countries were RIM has strong market share. Most operators in the region have some sort of prepaid data plans. For example, TIM in Brazil has a prepaid data plan for $R0.50/day/10MB for any smartphone.

Exhibit 9: Prepaid data plans

Source: TIM, Brazil, operators

Prepaid data plans are a great way to increase data ARPU and to get prepaid subscribers to experience data and potentially convert them to postpaid.

Movistar, Peru


CASE STUDY: Smartphone for teenagers Operators are making efforts to increase the data services addressable market with prepaid data plans. Another market operators are tapping is a segment that is naturally data ready: tweens (8- to 12-year-olds) and teens (13- to 19-year-olds). This group doesn’t know the world without the Internet and mobile phones, so they expect more of mobile devices than just calling. Smartphones are not only a tool for communication but also for entertainment. Teenagers do far more than check email on their smartphones ― they download music, video and all sorts of apps, including games. This demographic uses more data and therefore requires full data plans. This is one reason why they are a desirable demographic for operators. Their limited purchasing power is offset by their ability to be persistent decision influencers that convince their parents to get them smartphones. Operators are investing large portions of their marketing budget to position themselves in this segment. An example of these efforts are the ―Contalo con tu primer smartphone‖ (―Tell it with your first smartphone‖) campaign that Claro is rolling out in Argentina and the ―Mi primer smartphone‖ (―My first smartphone‖) campaign that Movistar is rolling out in Chile.

Exhibit 10: Youth-focused marketing ads

Source: Claro Argentina and Movistar Chile

Movistar also actively promotes electronic music concerts and other events with high numbers of youth attendants. These strategies not only help operators to increase their data ARPU but also reach users who will be future decision makers. Operators aim to create brand awareness and loyalty in this group at the early stages of the consumer life cycle.

Author: Juliana Gomez, Analyst ([email protected]) Editor: Sonia Jorge, Research and Consulting Director ([email protected]) Support: www.pyramidresearch.com/insiders.htm ([email protected]) © PYRAMID RESEARCH | LATIN AMERICA TELECOM INSIDER VOL. 3, NO. 6 14

Conclusions Smartphone adoption in Latin America is rising. Operators’ need to increase data ARPU is a large factor in this increase. Smartphone subsidies, a wide variety of data plans and prepaid options are some of the strategies that operators are using to increase the smartphone base. Vendor competition is driving prices down, making smartphones more affordable for the Latin American market. Consumers will see the benefits of competition in terms of more options and better prices.

Key findings

To increase data APRU, operators are making efforts to increase their smartphone installed base. The ownership of a smartphone is highly correlated with mobile data usage. To increase their smartphone subscriber base and drive data revenue, operators are widening their smartphone offers with an increasing variety of plans and subsidies.

Prepaid data plans are helping operators to increase the smartphones’ addressable market. To take advantage of the full market, operators are developing prepaid data packages to give prepaid users the data experience and to attract them to postpaid data plans.

Competition among handset vendors has generated steep price erosion in the region. Smartphones are today more affordable for consumers, and as Chinese manufacturers focus more on the Latin American market, prices in the region are likely to slip further.

Price and apps are the most important factors that consumers consider in their smartphone buying decisions. The services that smartphones can provide (including the apps available on those smartphones) are a key driver of sales.

Recommendations

Operators — Consider the size of the prepaid segment in the region and develop data plans that serve this segment. Many prepaid users in the region don’t have postpaid data plans not because of their limited purchasing power but because they cannot prove that they have a regular income to fulfill postpaid plan commitments.

Operators — Make sure prepaid data packages provide enough room to be able to actually have a ―near full‖ data experience, that is, being able to actually browse the Web and do things online without running out of credit, but limit the time and capacity of each top up. Take care to avoid deterring subscribers from signing up for a postpaid plan or generating incentives to switch from a postpaid data plan to a prepaid data plan. If prepaid data plans are very flexible or generous, prepaid customers won’t see the benefit of switching to postpaid and postpaid customers will be tempted to switch to prepaid data options.

Vendors — Price is an important success factor in Latin America. High-end phones are affordable for only a small portion of the population. The mass market lies in the lower tiers. But be careful not to engage in price wars that are not sustainable over the long term. Work at positioning your brand by strengthening relationships with sales channels. Operators continue to be the main channel, but start looking at retailers that are having an increasing role in handset sales.


Developers — Android is the fastest-growing operating system in the region. Focus on the platform. Keep in mind that part of the growth is driven by mobile operators liking the ability to customize devices with their own apps and app stores. Target operators and clients and offer them local content apps like local sports, news, TV shows and maps.


Related resources Mobile Social Networks Set to Experience Rapid Growth as Mobile Penetration Rates Rise Telecom Insider published October 2011 Pyramid Research believes mobile devices will become the platform of choice for accessing social networking sites in LA. To catch up with the developed world, where mobile social networking is increasing business opportunities, there are some changes that Latin American operators and device manufacturer need to make. This report discusses those changes and how much progress LA operators have made thus far.

Brazil: Mobile Data and Prepaid Mobile Drive Unprecedented Telecom Revenue Growth by 2015 Country Intelligence Report published March 2011 Pyramid Research estimates that total telecom revenue in Brazil reached $67.4bn by year-end 2010, up $13.4bn from 2009, and will total $88.7bn in 2015, with a CAGR of 5.6%, fueled by expansion in mobile data services and broadband Internet access.

Location-Based Services: Market Forecast, 2011-2015 Research Report published May 2011 The report provides a detailed overview of the current status and size of the location-based services market. It takes a specific look at the positioning of the mobile operators within the value chain and how they can leverage their assets to take a stake in this growing opportunity. A number of services are analyzed, but the biggest focus is on navigation, the largest in terms of revenue where various business models are establishing themselves and a range of different players are focusing their efforts, creating a dynamic and fast-changing market segment. Other services such as people finding and local search are also covered. We do not include fleet tracking services or location-based voice billing.

Global Smartphone Forecast Forecast published quarterly The Smartphone Forecast tracks annual handset sell-through of total mobile handsets and smartphones for a ten-year period including five historical years and five forecast years. Smartphone sell-through is segmented by vendor and by operating system. Granular data is provided for each of more than 50 countries, making Pyramid’s smartphone forecast the most detailed on the market today.

Mobile Data Pricing Plans: How Operators Can Escape the All You Can Eat Trap Telecom Insider published June 2010 The exponential increase in traffic generated from the use of data-intensive applications is one of the top challenges that mobile service providers are facing today. Unlimited data plans are not sustainable in the long term, as they cap spending while usage continues to increase. Operators need to introduce pricing models that will promote the adoption of non-voice services, while making sure that increased adoption also translates into increased revenues as traffic loading accumulates on their network.

Mobile Social Networks Get Profit Potential from Youth Movement Telecom Insider published May 2011 This report examines the sources of the demand for mobile social networks, including what will sustain and increase this demand. It explores how handset technology and mobile phone network infrastructure development can affect usage of mobile social networks. It describes the areas where MNOs and handset manufacturers could connect to revenue opportunities through mobile social networks offerings in the region. Lastly, it discusses the economic and social changes and developments that are occurring in AME as a result of mobile social networks.

Why a Fixed/Mobile Fight to the Death Does Not Make Sense for Latin American Operators Telecom Insider published June 2011 Latin America has historically been a follower when it comes to technology adoption. The region is usually two to five years behind the developed world when it comes to new products and services that involve technology deployments in the telecom industry. But now, for once, Latin America is taking the leadership in mobile broadband adoption, and the impact will be as hard to predict as it has been when trying to forecast uptake across other technologies in other regions. This Insider explores the many reasons why Latin America skipped the high fixed Internet penetration level market phase before mobile broadband uptake, as seen in other markets.

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