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Latin America Telecom Insider / Vol. 2, No 5, Edition 8 - Multiplay in Latin America: Aggressive Pricing to Drive Double-Digit Revenue Growth
Pyramid Research, Inc., Aug 2010, Pages: 16
Network operators in Latin America will use aggressive pricing strategies to boost subscriber counts and revenues for multiplay services over the next five years, resulting in a projected multiplay revenue growth rate of 58 percent from 2010 to 2014, according to a new report.
Multiplay in Latin America: Aggressive Pricing to Drive Double-Digit Revenue Growth examines the three levers operators will need to pull to ensure they keep their multiplay revenues growing: Increasing the number of customers signing up for bundled services, selling new value-added services to existing clients to increase fees in higher-income segments, and shifting existing multiplay clients from double play to triple play and to quad play. Finally, the report offers three case studies to illustrate the different strategies followed by Latin American operators to retain and increase customers.
While competition and economic factors continue to put pressure on multiplay prices in Latin America, the price erosion is likely to work in operators' favor in terms of expanding their subscriber bases and ultimately increasing total multiplay revenues, says Gerardo Sandoval, Manager for the Latin America region at Pyramid Research. 'Operators will need to grow the number of customers subscribing to multiplay services within the current segments and tap into new lower-income segments,' he explains. 'Declining prices will make multiplay a more appealing product for lower-income
families in Latin America, which in turn will have a positive impact on the number of subscribers in the region.'
By 2014 multiplay subscribers will reach 52.9 million, Pyramid projects. 'We expect that by 2014, 40.1 million households will subscribe to double play, 12.4 million to triple play, and 397,000 to quad play in the region,' Sandoval says. 'This is a considerable increase from the 32.2 million households subscribing today to multiplay, of which almost 27 million subscribe to double play, 5.3 million to triple play, and 20,000 to quad play,' Sandoval explains.
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