The presence of MVNOs in the Latin American region has been very limited thus far, particularly when compared to more mature regions such as Western Europe and North America, where MVNOs have attracted a considerable number of subscribers. Over the last few years, there has been a resurgence of interest in the MVNO model in Latin America and regulators and policy makers across the region, looking for ways to stimulate competition in their respective mobile markets, have recently started to issue specific laws to regulate the entry and activity of MVNOs. This report analyzes regulation as one of key growth drivers for MVNOs in the region.
– Niche and telco are currently the most prevalent business models in Latin America, accounting for 31% and 24% of the total active MVNOs in the region. MVNO sub-brans account for 21%, while the remaining MVNOs are focused on the M2M, discount, retail and ethnic markets.
– Pyramid Research anticipates MVNO subscriptions in Latin America will top 7.0m by year-end 2015 or 0.9% of the region’s total mobile base, making it the fourth-largest MVNO region in terms of penetration worldwide. Colombia will remain as the largest MVNO country, both in terms of subscribers and penetration, distantly followed by Chile.
– Growth in the Latin American MVNO market will be mainly driven by regulatory changes aimed at stimulating competition in the mobile segment and reducing entry barriers for new players.
