Secret to Multiplay Success in Latin America Requires Mass Market Appeal, Finds Pyramid
MEDIA RELEASE PR35216
CAMBRIDGE, Mass., June 27 /PRNewswire-AsiaNet/ --
As operators continue to exhaust the high-income consumer segments in Latin America, the bundling
strategies with the best chance of success involve broadened offerings that will attract lower-income
households to broadband and pay-TV, according to a new report from Pyramid Research (www.pyr.com), the
Multiplay Services in Latin America: Operators Target the Mass Market examines the multiplay strategies of
several leading operators in Latin America and the rationale for engaging customers outside the higher-
income population segments. This 12-page report compares the cost of multiplay services across several
markets to demonstrate that there is potential for costs to come down in Latin America, which would boost
penetration. Case studies of two integrated operators -- NET Servicos in Brazil and Claro in Central America --
examine the strategic challenges and choices involved in expanding target markets through bundling.
Multiplay Services Forecasts (http://www.pyramidresearch.com/multiplayfcst.htm) are also available and
provide service demand and revenue trends for bundled and blended telecom and media products worldwide.
In Latin America, bundling has gained traction in the last three years as fixed operators expanded into the
pay-TV market and cable operators pushed further into traditional telco territory. So far, bundling has attracted
mostly people in high-end socioeconomic groups who can afford these services; however, the value
proposition of operators is being challenge, notes Jose Magana, analysts at Pyramid Research and author of
the report.
"Given that Latin America's GDP per capita was $7,856 in 2008, operators must face the fact that to keep
penetration of fixed services growing and meet revenue expectations, they will soon exhaust the high-income
consumer segments in Latin America," says Magana. "Therefore they must start developing strategies to
attract lower-income households to broadband and pay-TV by offering an assortment of bundles," he adds.
Although selling to lower-income consumers is a challenge, they also represent an opportunity to reap
considerable benefits because of the significant size of the populations. "The challenge is to find the right mix
of prices, and differentiation, such as higher broadband connection speeds, pay-per-view content, and specific
pay-TV packages, will be crucial to increasing uptake of packages and helping to contain the decline of
ARPS," he explains. "The addressable opportunity for operators is to gain access to the 70 percent of
households that remain underserved in Latin America -- if operators can access at least half of those
households, they will easily be doubling their service base in terms of customer relationships," Magana says.
Multiplay Services in Latin America: Operators Target the Mass Market is part of Pyramid Research's Latin
America Telecom Insider report series. Telecom Insiders are packed with trend analysis, industry best
practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you
can leverage to make better business decisions.
Download an excerpt of this report here:
by contacting Jeff Claudino via email at claudino@pyr.com or telephone at
+1-619-229-9940.
About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the
telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection
of emerging markets, emerging technologies and emerging business models, powered by the bottom-up
methodology of our market forecasts for over 100 countries-a distinction that has remained unmatched for
more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's most comprehensive market
data, trusted research and insightful technology analysis.
About Light Reading
Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused
event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate
source for technology and financial analysis of the communications industry, leading the media sector in terms
of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research,
provide the most comprehensive communications research, market data, and technology analysis in close to
100 markets around the world. Light Reading produces nearly 20 targeted communications events including
TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo,
as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was
acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
About TechWeb
business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb
produces the most respected and consumed media brands in the business technology market. Today, more
than 13.3 million* business technology professionals actively engage in our communities created around our
global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the
TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The
Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine,
MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services
including next-generation performance marketing, integrated media, research, and analyst services. TechWeb
is a division of United Business Media, a global provider of news distribution and specialist information
services with a market capitalization of more than $2.5 billion.
*13.3 million business decision-makers: based on number of monthly connections
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and
monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses
inform markets and serve professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business
information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve
these communities, bringing buyers and sellers together, helping them to do business and their markets to
Press contact:
Jennifer Baker
+1 617 871-1910
jbaker@pyr.com
SOURCE: Pyramid Research
CONTACT: Jennifer Baker,
Pyramid Research,
+1-617-871-1910,
jbaker@pyr.com
(UBM.L)
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