Developing Telecoms | Revenue growth highest in Latin America between 2010 and 2011

23 May 2012

Regional Trends

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Revenue growth highest in Latin America between 2010 and 2011

Tuesday, 21 June 2011 11:34 | James Barton

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Latin America outperformed other regions in mobile revenue growth for the period 1Q 2010 to 1Q 2011, according to a new ABI Research study. In terms of total aggregate service revenue Latin America grew at 17%, while in comparison North America achieved just 8.9% growth.

The great increment in the mobile revenues is largely attributable to increased subscriptions and ARPU. Latin America witnessed an 11.9% increase in mobile subscribers while attaining a 5.9% increase in ARPU, holding 2nd in position behind Eastern Europe, for the same period. ARPU in most regions declined, while North America and Western Europe only had meagre gains.

“Contrary to popular belief, Latin America is the rising star of the telecommunications market” says research associate Lim Shiyang. “With increasing affluence in South America, subscribers are becoming willing to pay more for better value added services.”

Meanwhile, revenues from data services have become the new engines of growth for telecommunications operators. While the global average growth rate for data service revenues during the period 1Q 2010 to 1Q 2011 increased by 20.3%, Latin America took the lead with a 40.3% increase. The increased data consumption is driven by increased smartphone adoption as can be seen from the 153% increase in smartphone shipments in 2010.

”The high growth rates attained through the widespread adoption of ‘mobility’ into the lifestyles of consumers in Latin America show that people are hungry for these types of mobile services and are willing to spend”, said mobile services practice director Neil Strother.

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