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Networks & Infrastructure
TM Forum's Inside Latin America unlocks a critical communications market
Innovation doesn't belong to the developed world anymore
by Anita Karvé
Innovation doesn't belong to the developed world anymore. In a globalized economy, where anyone from anywhere can compete for almost anything, building a successful organization requires a mentality "without borders" that can easily adapt to new business challenges. The path to innovation is no longer exclusive to the developed world; in today's globalized economy, it's vital to also understand how business and innovation develops in emerging markets, as competition and fresh new thinking can develop anytime and anywhere.
That's the spirit of TM Forum's Inside Latin America. Published every two months, the newsletter offers the latest information on TM Forum activities and exclusive analysis on the Latin American communications industry.
In the most recent issue, Wally Swain, SVP Emerging Markets, Yankee Group, discusses how global operators are increasingly taking a closer look at their core business and strengths and deciding that rather than run their own infrastructure, they'd rather contract that out to specialists like equipment vendors.
Swain offers an interesting perspective on how some Communications Service Providers in Latin America have chosen to de-emphasize their role in operating networks and are turning to outsourcing or Managed Services to fill in some of the gaps.
Changing gears, we're also featuring exclusive analysis on three hot areas - broadband, OTTs and mobile content services.
Mariana Rodríguez Zani, Director, Convergencia Research, says that with over 500 million mobile lines, Latin America is at penetration levels that separates the region from developed countries by only two years. But broadband penetration, which according to Convergencia Research closed at 6.4% of hits on population in 2009, the region is increasingly distant from the penetration levels in the OECD countries (excluding Mexico and Chile).
Nevertheless, Rodríguez Zani states that the potential of the Latin American market is equivalent to the broadband penetration we witness in developed countries. As for what the market is willing to pay, Latin Americans have shown themselves willing to make a great effort to acquire technology. According to Ariel Barlaro, CEO, NexTV Latam, the way the World Cup is driving the replacement of TV sets in Latin America may revolutionize the whole scenario. "Pay TV operators may lose control of their business, the new Digital Terrestrial Television (DTT) could find the ideal complement for content on demand, while we are witnesses to the birth of a new type of service provides: the OTTs (Over the Tops)."
Lastly, Frost & Sullivan just released a report on the mobile content services market in Latin America. According to Bruno Baptistão Neto, ICT Industry Analyst, Frost & Sullivan, Mobile content services in Latin America are expected to grow at a CAGR of 18.1 percent in the period 2009 to 2014. "Despite the economic downturn from the last quarter of 2008 to 2009, the total Latin American mobile services markets maintained its growth trend."
Click here to access the full edition of Inside Latin America.
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