HSPA and LTE connections will be key drivers of mobile connection growth in Latin America, with total connections expected to hit 750 million connections by 2015 and an average penetration rate of 122%, according to a new report from the GSMA.
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The region is one of the world’s largest mobile markets by volume with more than 630 million connections at of end of 2011. Sebastian Cabello, director of Latin America at GSMA, added that besides being one of the largest, Latin America is also one of the world’s fastest-growing mobile markets.
Cabello noted the region has posted 13% growth per year for the past four years, driven by increasing accessibility, flexibility and affordability of mobile services, and boosted by the increasing affluence of the region and the relative shortage of the fixed-line infrastructure.
According to GSMA, the mobile market in Latin America currently generates an estimated $175 billion in revenue, or 3.6% of total GDP, with mobile operators alone contributing $82 billion in 2010 (1.7% of the total output of the region).
The mobile ecosystem also makes a substantial contribution to employment and has generated almost 600,000 jobs and supports an addition one million.
Although mobile broadband is currently an embryonic market in Latin America with only 61 million subscribers at the end of 2011, GSMA noted subscriptions have grown at the rate of 133% per year for the last five years and are predicted to continue growing at 50% per year for the next five years.
The GSMA noted achieving greater coverage and bridging the digital divide in Latin America largely depends on how governments utilize the 700 MHz spectrum band. The association noted the allocation of this spectrum in the short term will help connect the unconnected, accelerate adoption rates and significantly impact economic growth.
Last September, GSMA released a study in connection and AHCIET that showed the allocation of “digital dividend” spectrum in the 700 MHz band for the deployment of mobile services could contribute almost $15 billion to the Latin American economy and would expand mobile broadband coverage to nearly 93% of the population.
In addition, GSMA has identified four key regulatory themes that are essential to democratizing mobile broadband access and sustaining growth.
–The need for a transparent, predictable, consultative and aligned regulatory regime.
–Reducing ineffective taxation to enable increased mobile penetration.
–Incentives to drive universal access, rather than universal service obligations/funds.
–The importance of a clear roadmap of spectrum allocation, particularly to satisfy the increasing demand of end users for mobile broadband
