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MVNOs in Latin America: M2M Growth and Enhanced Customer Care for Niche Segments to Drive MVNO Share

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MVNOs in Latin America: M2M Growth and Enhanced Customer Care for Niche Segments to Drive MVNO Share

Summary

"MVNOs in Latin America: M2M Growth and Enhanced Customer Care for Niche Segments to Drive MVNO Share", a new Telecom Insider Report by GlobalData, provides an executive-level overview of the MVNO market in Latin America, with forecasts of key indicators up to 2022. It delivers deep quantitative and qualitative insight into the MVNO market, assessing business MVNOs business models and value propositions, and the main drivers and challenges for MVNOs to increase their share in the mobile space in the region.

The presence of MVNOs in the Latin American region has been very limited thus far, particularly when compared to more mature regions such as Western Europe and North America, where MVNOs have attracted a considerable number of subscribers. Nevertheless, at 1.3% by year-end 2017, MVNOs market share of mobile subscriptions in Latin America will be higher when compared to other emerging regions such as Africa & the Middle East (0.8%) and Central and Eastern Europe (1.1%). Over the last few years, there has been a resurgence of interest in the MVNO model in Latin America and regulators and policy makers across the region, looking for ways to stimulate competition in their respective mobile markets.

The report is structured as follows -
- Section 1: MVNO definition, main business models and regulatory framework. This section provides information regarding the definition of MVNO, the different business models and value proposition built by MVNOs and the MVNO regulatory framework in the region.
- Section 2: MVNO market context. This section explores MVNO market size and growth in Latin America, showcasing the different types of MVNOs business models acting in the region.
- Section 3: Drivers and inhibitors impacting MVNO subscription growth in Latin America. This section details the drivers and inhibitors impacting in the growth of MVNO subscriber numbers, showcasing how MVNOs are taking advantage of the drivers and overcoming the market challenges.
- Section 4: Case studies. We continue with a review of the strategies, positioning and product portfolio of a number of MVNOs that are succeeding in the region.
- Section 5: Key findings and recommendations. We conclude the report with a set of key findings and recommendations for MNOs, MVNOs and regulators.

Scope

- Increasing number of MVNOs and low-tariffs offered by MNOs in Latin America have forced MVNOs to come up with new products and strategies to improve their competiveness. These strategies involve improving their customer services and developing business models geared towards M2M.
- MVNOs will account for only 1.3% of the total mobile subscriptions in Latin America at 2017-end. Looking ahead, we estimate that MVNO subscription will record a CAGR of 18% over 2017-22 to reach 21.1m by the end of 2022.
- Colombia will be the largest MVNO market by 2017-end in terms of subscription number; with a 37.8% CAGR between 2017 and 2022, Mexico MVNO market will be the largest by year-end 2022, driven by favorable regulatory environment and the nationwide LTE wholesale network in 2018-2020, named Red Compartida.

Reasons to buy

- This Insider Report provides a comprehensive examination of the MVNOs business models in the Latin America market to help executives fully understand market dynamics, determine what works and what doesnt, formulate effective product development plans and optimize resource allocation and return on investments.
- This report also provides a five-year forecast of the MVNO market in Latin America, developed using GlobalDatas rigorous bottom-up modeling methodologies, to enable executives to effectively position their companies for growth opportunities and emerging trends in demand for their products.
- Three case studies illustrate the business model and strategy of select MVNOs in Latin America, this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.
- The report discusses concrete opportunities in the MVNO market in Latin America, providing a number of actionable recommendations for MNOs, MVNOs and regulators.

TABLE OF CONTENTS

Table of Contents
Executive Summary 6
Section 1: MVNO definition, main business models and regulatory framework 7
MVNO definition 8
MVNO business models 9
MVNO regulation in Latin America 12
Section 2: MVNO market context 14
MVNO global market 15
MVNOs in Latin America market 16
MVNO business models in Latin America market 17
Section 3: Drivers and inhibitors impacting the MVNOs subscription growth in Latin America 24
Drivers and Inhibitors for MVNOs 25
New Products and Disruptive Business Models - Driver 26
Enhanced Customer Experience - Driver 27
Growth in B2B Sector - Driver 28
Saturated Mobile Penetration - Inhibitor 29
Multiplay Offers - Inhibitor 30
Section 4: Case Studies 31
Vodafone Brasil 32
Virgin Mobile (Colombia) 34
Weex 36
Key findings and recommendations 38
Key findings 39
Recommendations 40
Acronyms and Definitions 41

List Of Tables

Exhibit 1: MVNO market structure 8
Exhibit 2: MVNO main operational business models 8
Exhibit 3: Most prevalent MVNO business models in Latin America based on their marketing approach 9
Exhibit 4: MVNO business models based on their marketing approach 10
Exhibit 5: Most recent cases of MVNO regulation, Latin America 12
Exhibit 6: Indirect regulatory measures favoring MVNOs, 2017 13
Exhibit 7: MVNO subscriptions market share by region, 2017 15
Exhibit 8: MVNO subscriptions as a percentage of total mobile subscriptions by region, 2017 15
Exhibit 9: MVNO subscriptions as a percentage of total mobile subscriptions by country, Latin America, 2017 16
Exhibit 10: MVNO subscription market share by country, Latin America, 2017 16
Exhibit 11: Number of active MVNOs and market share per business model, Latin America, 2017 17
Exhibit 12: Most prevalent MVNO business models in Latin America based on their marketing approach, 2017 18
Exhibit 13: Select active niche MVNOs and their target segments, Latin America, 2017 19
Exhibit 14: Features of sub-brand MVNOs 20
Exhibit 15: Vodafones value-added services for M2M solutions 21
Exhibit 16: Comparison of pricing of discount MVNOs and major MNOs in Latin America, August 2017 22
Exhibit 17: Select retail MVNOs in Latin America, August 2017 23
Exhibit 18: Main factors affecting the MVNO market in Latin America 25
Exhibit 19: Disruptive strategies followed by MVNOs in LATAM 26
Exhibit 20: Areas of customer experience differentiation and examples 27
Exhibit 21: M2M subscription growth (CAGR) over 2017-2022 in select LATAM countries 28
Exhibit 22: Mobile subscription penetration of population in select LATAM countries 29
Exhibit 23: Comparison of packages by MNO & MVNO 29
Exhibit 24: Select examples of cable operators that entered into MVNO market, Latin America, August 2017 30
Exhibit 25: Vodafone Brasil, Key performance indicators, 2017 32
Exhibit 26: Vodafone Brasil Mobile subscriptions 2017-2022 33
Exhibit 27: Virgin Mobile, key performance indicators, 2017 34
Exhibit 28: Virgin Mobile, mobile subscriptions 2017- 2022 35
Exhibit 29: Weex, key performance indicators, 2017 36
Exhibit 30: Weex mobile subscriptions 2017-2022 37

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