OVERVIEW
Catalyst
Summary
MVNO DEFINITION AND MAIN BUSINESS MODELS
MVNOs operate in the mobile market through agreements with MNOs, whether in a direct or an indirect manner
Based on their marketing approach, MVNOs can be grouped into 11 different categories
GLOBAL AND REGIONAL MVNO MARKET CONTEXT
MVNO penetration in Latin America relatively low compared to more mature regions
Colombia, Mexico and Chile account for
80.6% of total MVNO subscriptions in Latin America, despite low penetration levels in the latter two markets
Telco and niche MVNOs account for 55% of total commercial MVNOs in the region
Around 55% of all active MVNOs in Latin America operate in Chile and Mexico
Although the youth segment is the largest demographic group served by MVNOs, there are opportunities in other niches including professional groups and sports clubs
The first wave of MVNOs in Latin America was comprised of telcos and cablecos without spectrum assets, looking to complement their fixed service portfolio with mobility services
Established MNOs in the region are looking to launch their own MVNOs as a way to target clients more effectively and compete with MVNOs without diluting their core brand
Most Latin American MVNOs focusing on the M2M market are based in Brazil
The presence of retail MVNOs is still low in Latin America, but a number of retail businesses across the region have announced plans to launch mobile phone services using this business model
The ethnic and discount business models have struggled to gain traction in Latin America and continue to face low growth prospects
MVNO MARKET EVOLUTION IN LATIN AMERICA
By 2020, Mexico will become the largest MVNO market in Latin America in terms of subscribers, overtaking Colombia, while Brazil will register the fastest growth rate
Regulators look for ways to boost competition
Interest in MVNOs is increasing across Latin America as regulators and policy makers look for ways to stimulate competition in their respective mobile phone markets
Colombia and Chile, the most active MVNO markets in Latin America, have introduced measures to boost competition
Colombia will remain most mature MVNO market in Latin America throughout forecast period with an MVNO subscriber share above 9%
MARKET DETAIL: CASE STUDIES
Telefonica’s Tuenti becomes first MVNO to integrate the telco and OTT (app) model in Spain, plans to expand throughout Latin America
Porto Seguro Conecta is expanding its service offering from the M2M to the retail segment, targeting existing insurance services and credit card clients
Colombian group Grupo Exito becomes the first retailer in Latin America to launch MVNO services
CONCLUSIONS
Market set to grow further as penetration offers room for expansion and regulatory changes make entry easier
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