Latin America to account for one fifth of the global mobile VAS market by 2014

According to the latest figures from Informa Telecoms & Media, the Latin America mobile value-added service (VAS) market* is expected to grow at 15.1% CAGR in the next five years, three times faster than the average global growth rate. Mobile messaging accounted for two-thirds of mobile VAS revenues in the region in 2009 and will be the top segment through 2014, followed by mobile Internet and mobile entertainment.

“Informa Telecoms & Media estimates that the mobile VAS market in Latin America was worth US$10.8 billion in 2009. Over the next five years, the market is expected to grow at a CAGR of around 15.1% and be generating revenues of over US$21.6 billion in 2014,“ comments Daniele Tricarico, Latin America analyst at Informa Telecoms & Media. “However, continuous growth will largely depend on the ability of the operators to provide VAS that are device-agnostic, competitively priced, regionally or locally focused, and easy to use and understand.”

In Latin America, the transition from CDMA to GSM services has not been easy for the mobile operators and it has somewhat delayed the overall uptake of mobile VAS. However, a number of Latin American operators are now reporting good results from deployments of SIM-based mobile VAS.

In addition, handset vendors have invested in establishing manufacturing units in Latin America in countries including Brazil, Mexico and Argentina. These local production units will allow handset manufacturers to offer feature-rich mobile devices capable of supporting advanced mobile VAS at affordable prices in Latin America.

“In global terms the next wave of mobile subscribers will come from high growth markets including many Latin American countries, and a large proportion of these users will be from rural areas and smaller cities,” says Tricarico. “These subscribers may be low-ARPU users but many of them will be willing to spend on mobile VAS as long as they cater to their needs and requirements. Mobile banking is an example of these services great potential for growth in Latin America.” Latin America will account for 20% of global mobile VAS revenues in 2014, up from 13% in 2009. Informa forecasts the global mobile VAS market will grow at 4.8% CAGR from US$85.4billion to US$108billion revenues in 2014.

Senior analysts from Informa Telecoms & Media will be presenting the group’s latest research at the Mobile VAS Forum in Miami on June 8-9. Operators presenting at the event include Telecom Personal Argentina, Vivo Brasil, Oi, Entel Bolivia, Digicel, Orange Dominicana, LIME Caribbean and Cable & Wireless Panama.

Notes to Editors
*Informa Telecoms & Media defines mobile VAS as all mobile services apart from voice calls.