Latin American Telecom Services Industry Adopts New Business Models to Spark Digital Transformation
May 11, 2017 | Frost & SullivanEstimated reading time: 2 minutes
The Latin American telecom services industry will see new business models as participants strive to be part of the on-going global digital transformation in the space. New business models are emerging as big data for telcos, mobility and mobile money, innovation-enabled monetization, software-defined networking and network functions virtualization (SDN/NFV), e-commerce and online marketplaces, augmented reality (AR), carrier Ethernet over wide-area network (WAN), and Internet of Things (IoT) gain ground in the region. Telcos’ structure must become more agile, flexible, and able to leverage an interconnected ecosystem to adapt.
“Changing market dynamics compel telcos to become customer-centric, investing in new products and services, aiming to transform their cost base, and simplifying as well as digitalizing complex business models, processes and systems,” commented Digital Transformation Research Manager Ignacio Perrone. “Going forward, they must also be part of an ecosystem of partners or lose relevance.”
Latin American Telecom Services Industry Outlook, 2017, new research from Frost & Sullivan’s Communication Services Growth Partnership Service, unveils key trends in the Latin America data communications, broadband and mobility markets for 2017, and how companies can prepare to take full advantage of them.
Key investment areas in the Latin American telecom market include big data, mobile money to leverage the large unbanked population, and mobile data and mobile enterprise applications, which will replace mobile voice as growth drivers and compel mobile carriers to enter new partnerships.
Evolving business models will have to meet the demands of different end users and diversify telco revenue streams by verticals. Some of the upcoming changes will include:
- Increasing deployment of Ethernet over WAN to enable enterprise IT transformation by reducing costs and complexity
- Use of SDN and NFV technologies to achieve the agility and simplicity required to make enterprise WANs dynamic; SDN/NFV enable enterprise WAN to handle video traffic efficiently
- More eCommerce supported by mobile apps, platforms, and big data and analytics that will enhance opportunities for marketplace deliveries and solutions
- Increasing integration of AR in mobile applications and mCommerce
- Operator-driven IoT business models, where major telecom participants take the lead in driving IoT by providing connectivity
“Communications service providers need to embrace digital transformation and reach out to capitalize on the opportunities derived from new technologies, such as big data and AR. The risk of not doing so is to become a sole provider of connectivity, and thus being commoditized,” said Perrone. “Companies like TIM, Telefónica and Oi are moving fast to transform themselves, and competitors should look at these examples and find their own way to make technology work to their advantage.”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
Suggested Items
Koh Young Showcases Award-winning Inspection Solutions at SMTconnect with SmartRep in Hall 4A.225
04/25/2024 | Koh Young TechnologyKoh Young Technology, the industry leader in True 3D measurement-based inspection solutions, will showcase an array of award-winning inspection and measurement solutions at SMTconnect alongside its sales partner, SmartRep, in booth 4A.225 at NürnbergMesse from June 11-13, 2023. The following offers a glimpse into what Koh Young will present at the tradeshow:
Book Excerpt: The Printed Circuit Assembler’s Guide to... Factory Analytics
04/24/2024 | I-Connect007 Editorial TeamIn our fast-changing, deeply competitive, and margin-tight industry, factory analytics can be the key to unlocking untapped improvements to guarantee a thriving business. On top of that, electronics manufacturers are facing a tremendous burden to do more with less. If you don't already have a copy of this book, what follows is an excerpt from the introduction chapter of 'The Printed Circuit Assembler’s Guide to... Factory Analytics: Unlocking Efficiency Through Data Insights' to whet your appetite.
Real Time with... IPC APEX EXPO 2024: Industrial Quality Solutions from Zeiss
04/23/2024 | Real Time with...IPC APEX EXPOEditor Nolan Johnson and Herminso Gomez of Zeiss Group discuss the company's industrial quality solutions, with a focus on X-ray technology. Zeiss provides a range of microscopy options and Herminso highlights the advantages of X-ray technology for aerospace, medical, and consumer electronics sectors.
Altair Acquires Cambridge Semantics, Powering Next-Generation Enterprise Data Fabrics and Generative AI
04/22/2024 | AltairAltair a global leader in computational intelligence, acquired Cambridge Semantics, a modern data fabric provider and creator of one of the industry’s leading analytical graph databases.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/19/2024 | Marcy LaRont, PCB007 MagazineFor my must-read picks of the week, I’m highlighting Parker Capers, a young professional seeking employment, solid counsel from Dan Beaulieu on what your post-show plan should look like, more information and insight on “chiplets” and the need for secure data transfer standards from columnist Preeya Kuray, as well as Matt Stevenson’s design for reality wisdom. It’s a reminder to download one of our newest books (there are several) you don't want to miss if you are an assembler.