MVNOs in Latin America: Regulatory Changes Create Growth Opportunities for New Market Players

This report analyzes the MVNO market in Latin America. It looks at some of the most successful initiatives for each business model. It also assesses the regulatory and support framework for MVNO growth. It concludes with case studies and recommendations on what regulators, MNOs and MVNOs can do to make the market more dynamic and take advantage of growth opportunities.

Scope

  • Understand what MVNOs are and how they operate
  • Learn about the MVNO market in Latin America and the current state of play.
  • Look at what regulatory changes are helping to drive MVNO growth in the region.
  • Understand future opportunities and issues in this market.

Reasons to buy

What are MVNOs and how do they work>

What is the current penetration of MVNOs in Latin America?

How is changing regulation in the region helping the MVNO market?

What can regulators, MVNOs and MNOs do to further spur growth?

Companies mentioned

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Table of Contents

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 ...

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

APPENDIX

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