Fixed Mobile Convergence

Affordable mobile broadband is a huge business opportunity for operators in Argentina. Demand for lower cost mobile broadband services will shape telecom market in Argentina over the next 5 years, according to Pyramid Research.

Operators in Argentina are looking for innovative ways to retain customers. The mobile market already reached saturation, Pyramid Research said in its report called “Argentina: Affordable Mobile Broadband Is a Huge Operator Opportunity.”

“The increasing availability of smartphones and the growing demand for wireless broadband and data services will drive a sustained expansion of the mobile phone sector over the next five years,” said Eulalia Marin-Sorribes, research analyst at Pyramid, in a statement.

“Customer retention programs, a well-focused strategy aimed at moving subscriptions from prepaid to postpaid, and the introduction of new services and applications that can be sold to existing subscribers will be the focus for Argentine operators during the 2011-2015 period,” Marin-Sorribes said.

In Argentina, mobile ARPS decreased due to low-ARPS prepaid subscriptions. However, from 2011 onward, the industry is expecting a change in the trend. The ARPS will change because of support from increased data usage.

ARPU is poised to expand at a 3.6 percent CAGR in the next five years to $13.70 in 2015, with data contributing 45 percent of the total ARPU. Messaging, especially SMS, will decrease from 68 percent of total data revenue in 2010 to 48 percent in 2015. SMS will decline because of operators' efforts to promote connectivity and infotainment services.

Recently, Analysys Mason, tracking the Indian market, announced that allocating 5MHz of 3G spectrum per licensee could increase mobile broadband penetration by 35 percent. As a result, the number of 3G users will reach around 160 million by 2015. This would assist in increasing broadband penetration by 3.3 percent.