Categories: Finance, Industry, Networks

Latin American telecom market to reach $200B this year

IDC_logo

Mobility, cloud computing, big data and social networks are driving telecom growth worldwide. “None of these trends would exist without telecommunications infrastructure and services,” said Diego Anesini, IDC’s telecom manager, during a press conference in São Paulo yesterday. IDC forecasts that the Latin American telecom services market will close 2012 with gross revenues of U.S.$200 billion, 8% higher than in 2011.

Follow RCR Wireless NewsAmericas on TwitterFacebook and subscribe to our free periodic newsletters

IDC’s numbers include voice and data, both fixed and mobile. In 2011, the total telecom service market in the region achieved U.S.$186 billion, of which Brazil represents about 45%.

“We see a move from voice to data and from fixed to mobile. And one of the main drivers is the rise of mobility,” Anesini said. ”Enterprises are increasing application adoption. It started with email, and now firms are adding more apps.” He also pointed to consumerization and BYOD (bring-your-own-device) as key drivers. According to IDC, two out of three companies in Latin America will allow employees to use their own devices at work at some level. However, BYOD is a practice currently allowed for only 15-20% of employees, usually C-level executives.

As for vendors, IDC noted that total gross revenues for network equipment reached U.S.$2.7 billion in 2011 (of which Brazil accounts for U.S.$1.050 billion). The consultant firm forecasted that the network equipment market will close 2012 with revenues of U.S.$3.020 billion.

João Paulo Bruder, IDC Brazil telecom analyst, explained that the total revenue amount includes routers, switches, wireless LAN and IP telephony. “It is important to highlight the associated costs. For each dollar spent in hardware, you have to add four dollars related to services, cables, and workforce, among other things,” he said.

As for 2013, IDC forecasted an 8.5% growth in telecom equipment compared to 2012.

Pyramid Research predicted that Latin American mobile data will go from 25% of all the region’s mobile revenues in 2012 to 39% in 2017, when it will surpass U.S.$50 billion, according to a quarterly mobile data forecast.

One Response to “Latin American telecom market to reach $200B this year”

Trackbacks/Pingbacks

  1. [...] Latin American telecom market to reach $200B this yearRCR Wireless News Americas. [...]


Leave a Reply

Subscribe to RCR eNewsletters


Industry Events

5/13-16: TM Forum Management World Nice, France
5/21-23: CTIA 2013 Las Vegas, NV
5/22: Telecom Analytics at CTIA 2013 Las Vegas, NV

6/26: Telecom Exchange (TEX) East New York City, NY
9/15-18: CCA Annual Convention Las Vegas, NV
10/7-10: 2013 Wireless Infrastructure Show Hollywood, FL
10/21-24: Futurecom 2013 Rio de Janeiro, Brazil

RCR Webinars

  • RCR Editorial Webinar: Telecom Analytics - May 15, 2013
  • Software Strategies and Solutions for Next-Generation Wireless Networks - May 16, 2013
  • RCR Editorial Webinar: Next-Generation Networks - June 19, 2013
  • FCC Statement on Boosters - June 20, 2013
  • RCR Editorial Webinar: Microwave Backhaul for Mobile/Enterprise - July 10, 2013
  • Evolving the Service Provider Network to an Application Delivery Network - On Demand
  • RCR Editorial: Regulatory Review: Spectrum Harmonization Impact on LTE Ecosystem, Spectrum Auctions and LTE roaming? - On Demand
  • RCR Editorial: Talent Wars: Telecom Hardware, Software, and OTT - On Demand
  • Maintenance Windows are a Thing of the Past – Delivering True 5 9s for a Modern World - On Demand
  • The Future of Enterprise Wireless Networks - On Demand
  • Tracking Generator Applications for RF and Microwave - On Demand
  • Techniques for Precise Cable and Antenna Measurements in the Field - On Demand
  • RCR Editorial: The Smarter TelCo: Exploring Service and Network Intelligence - On Demand
  • Anritsu: PIM Testing: Frequency Band Test Sets for Site Testing - On Demand
  • RCR Editorial: Carriers LTE dilemma: Deploying & Managing Small Cell, DAS, WiFi and HetGen Networks - On Demand
  • RCR Wireless Editorial Webinar: RCR Editorial: LTE Device Ecosystem: Design, Test, Launch and Repair - On Demand
  • Maximizing Your Wireless Network (and Revenue) by Detecting, Identifying and Locating RF Interference - On Demand
  • American Tower: Benefits of Infrastructure Sharing - On Demand
  • Driving New Revenues With Policy Management and Subscriber Engagement - On Demand
  • Managing QoE: Content, Value and Capacity - On Demand
  • Webinar: How to Manage Video Congestion Holistically in a Mobile Network - On Demand
  • JDSU: Optimizing Small Cells for Coverage & Capacity - On Demand