YOU ARE AT:AmericasLatin American telecom market to reach $200B this year

Latin American telecom market to reach $200B this year

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.

ABOUT AUTHOR