LATAM Telecom

"Live a balanced life - learn some and think some and draw and paint and sing and dance and play and work every day some." - Robert Fulghum The market for mobile applications has changed significantly in the last four years, when I first started working with these applications. Four years does not sound like a long time but in this industry it means I have lived through several generations of devices and have seen some applications take off and many others fail. This year, analysts expect mobile applications to really take off; it is very exciting to see the industry reach this point, so I thought I'd share my experience and what I've learned in the process. Back then, Comverse was working on developing client applications that used new device capabilities to enhance network based services. These services included Call Completion, Mobile Instant Messaging, Address Book Backup, Mobile Email and Visual Voice Mail; each of them had different technical and commercial issu...

"When we long for life without difficulties, remind us that oaks grow strong in contrary winds and diamonds are made under pressure." ~Peter Marshall Technology companies tend to view the Latin American mobile market as a single block; this might be in part because of the similarities in key demographic and economic factors including language, GDP and mobile penetration as well as the presence of two large players -Telefonica and America Movil- that dominate the region. The Latin American mobile market, however, is incredibly complex. Each country shows remarkably different subscriber usage behavior patterns and adoption of technologies; this translates into different needs and consequently, different opportunities for each market. Opportunity Maps are particularly useful in analyzing and understanding these differences. The chart above shows three key factors: (x) Average Monthly SMS; (y) MOU - Minutes of Usage; and ARPU - Monthly Average Revenue per User (bubble size) for t...

The time has come for SMS 2.0? In the last three years, we have seen vendors introduce new messaging solutions, all claiming to be the next step in SMS evolution. Presence enabled services have received a lot of attention but have limited traction in the mobile market. IM, by no means a new service, has been one of the most successful services but still far behind the penetration SMS has. SMS reached a mature stage years ago, its growth rate has flattened and it has kept the same form and functionality since it was first introduced. However, it remains one the top revenue generator for mobile operators. So what do you do for an encore? Cellular News published an interesting note on February 2nd: "­Acision has announced that Russian mobile operator, MTS is using its Instant Messaging solution to offer an enhanced messaging experience to its subscribers. Combining the Acision Person to Person Gateway with core elements from Colibria's product portfolio - including the Instant M...

It has been almost a year since the launch of the iPhone in the USA and only a few months since its introduction to the European maret. In this short period of time we have seen AT&T and Apple play with the pricing of the handset. Pricing for the service itself has not changed except for an additional package not offered in the beginning. In contrast, the European market sales of the device have not lived to expectations which shouldn't be surprising considering the price of the handset. The US and European markets offer interesting lessons for pricing the iPhone in Latin America: Both Apple and AT&T claim that the iPhone is selling in the U.S. up to expectations but overseas is a different matter . Everything seems to indicate the price is too high for the European market. Latin America is a low ARPU region but end users do not hesitate to buy high end devices. However, pricing the handset higher than a laptop is probably a big mistake. The number of users who are willing...

About a month ago, GSM Association issued a press release announcing Personal Instant Messaging Services Go Live in Asia with the commercial launch of IM in India (Aircel, Bharti Airtel, BPL Mobile, BSNL, Idea, MTNL, Reliance Telecom, Spice and Vodafone-Essar) and Malaysia (DiGi Telecommunications and Maxis), which allows customers of those networks to send each other instant messages using their mobile phones. According to GSMA, more than 40 mobile operators worldwide are developing Personal IM services. This initiative has taken root in Latin America with Telefonica Movistar leading the way with their SMS 2.0 initiative. SMS 2.0 is Telefonica's commercial name for the same service, which GSMA calls Personal Instant Messaging. GSMA has been working hard for the last two years to support the development of the technical and commercial framework for this service. In Latin America, Telefonica Movistar is already looking into deploying this service in different operations. Brazil ope...

Following my post from yesterday regarding the opportunity that Mobile Instant Messaging represents in Latin America, I found out that two major players, OZ and Neustar recently issued interesting press releases: NeuStar has announced that it has reached a milestone in the development of mobile instant messaging (IM) globally, having delivered 3 billion mobile IM messages across its servers ( source ). OZ announced that its mobile IM and mobile Email gateways have handled over 10 billion transactions to date. Adding to this milestone, OZ also announced that it has shipped its 100 millionth preloaded client on mobile phones ( source ). Both companies quoted additional statistics showing the success of both Mobile Instant Messaging and Mobile Email in the North American and European markets. According to Allen Scott, general manager of NeuStar, "This is an important moment for mobile IM because it marks a significant step toward this service becoming a mainstream mobile application...

Despite operator's interest and efforts in the last three years or so, Latin America has yet to catch up to their counterparts in the USA, Australia and Europe with a gateway/client MIM solution. The issue seems to be that so far, operators have shown interest in a portal messenger, in a region where MSN has more than 80% market share (90% according to some). Movistar and America Movil have both had talks with MSN but so far only Movistar Chile and Argentina have a formal agreement (see Movistar and Microsoft have created in Chile the first instant message community for mobile telephones ) for a WAP based solution. MSN is said to be looking at major markets (Mexico, Brazil) and going on a case by case basis, which means that any negotiation with America Movil and Telefonica Movistar will be done per country/operator. Talks between Latin American operators and MSN, however, have been going on for several years now and operators have become increasingly frustrated. Other portals (AOL...