Analyst Briefing

1. Enterprise Mobility Operators Facing Several
Challenges, Trends in Latin America
Renato Pasquini, Industry Analyst
ICT
June, 30, 2011

2. Today’s Presenters
Renato Pasquini, Industry Analyst
Frost & Sullivan
Functional Expertise:
8 years of expertise in the telecom industry, with experience in strategy consulting,
market research and regulation. Particular expertise in:
Competitive strategy
Financial, strategic and regulatory analysis
Qualitative and quantitative market research
2

3. Scope of the analysis
Mobile Services
Enterprise Consumer
Mobile Services* Services**
Enterprise Data Enterprise
& VAS Voice
Mobile Broadband Traditional Voice
VAS Push-to-talk
Data Applications VPN
*Large Businesses and SME
**Not included
Roaming
3

4. Focus Points
Overview on the Latin America Mobile Enterprise Services Market
Qualitative analysis
Forecasts
Conclusion
4

5. Latin America Enterprise Services Market
Markets:
• Argentina
• Brazil
• Chile
• Colombia
• Mexico
• Venezuela
Mobile Enterprise Services Market: Fact Sheet
(Latin America), 2010
POPULATION (MILLIONS OF INHABITANTS) 433.6
MOBILE ENTERPRISE LINES (MILLIONS OF LINES 32.9
IN SERVICE)
TOTAL ENTERPRISES (MILLION) 15.2
LABOR FORCE (MILLION) 209.4
All figures are rounded; the base year is 2010. Source: Frost & Sullivan
5

6. Participation by country
• The total enterprise lines reached 32.9 million in 2010 and were
divided among the following countries shown below.
6,9%
5,6% 17,8%
1,8%
14,0%
53,9%
Argentina Brazil Chile Colombia Mexico Venezuela
Source: Frost & Sullivan
6

7. Key Participants
• The key participants are America Movil, Telefónica, Telecom
Italia, Nextel and Oi.
16.8%
6.5%
5.0%
29.1%
15.7%
26.8%
Nextel Telefónica
America Movil Telecom Italia (TIM + Personal)
Oi Others
Source: Frost & Sullivan
7

8. Qualitative analysis
Key Services/Applications, Future Trends,
Challenges, Drivers & Restraints
8

9. Lifecycle stages of key services/applications
Life Cycle stages of key services/applications (Latin America)
Market Value
Voice
SFA SMS
System LBS
Business email and
Apps VAS
Mobile Office
(CRM,
SCM, ERP) Convergent
Mobile services
Broadband
M2M
Cloud Video
services conferencing
Mobile Device Unified
Management Communication
M-Health
Mobile VoIP
Time
Development Growth Maturity Decline
Source: Frost & Sullivan.
9

10. Future Trends
High Impact
High Growth Impact
Medium
Growth Smartphones
Impact M2M and tablets
services
Projected Security
Impact on the enhancement
Enterprise
Services Market
Mobile cloud
computing
Low
Growth
Impact
Low Impact
Low High
Certainty Source: Frost & Sullivan.
10

11. Major Challenges
Mobile Enterprise Services Market: Major Challenges (Latin America) Strong Weak
Challenge 1–2 Years 3–4 Years 5–6 Years
Securing corporate information
High prices for data services
Transform the solution from ‘Nice to Have’ to ‘Must Have’
Integrating mobile applications with IT systems
Source: Frost & Sullivan
11

12. Major Drivers and Restraints
Strategies to Dissemination of Large number
SME segment solutions and of application
M2M developers Mobile broadband Cloud
capacity Convergence computing
expansion
Drivers
Drivers
Restraints
Restraints
Reduced
Low penetration
coverage of
of data-capable
3G networks
devices
High tax Delay of spectrum
burden auctions Security
Service still not concerns
affordable for some
SME
Denotes Current Impact
Denotes Long term Impact Source: Frost & Sullivan.
12

13. Forecasts
13

14. Lines and Revenues Forecasts
Mobile Enterprise Service Market: Lines and Revenues Forecasts (Latin America), 2010-2016
CAGR Revenues: 8.6 percent
CAGR Lines: 12.5 percent
25,0 70,0
60,0
20,0
Revenues ($ Billion)
50,0
Lines (Million)
15,0
40,0
30,0
10,0
20,0
5,0
10,0
0,0 0,0
2010 2011 2012 2013 2014 2015 2016
Revenues ($ Billion) 13,6 15,2 16,7 18,2 19,6 21,0 22,4
Lines (million) 32,9 37,7 42,9 48,4 54,1 60,2 66,6
Note: Revenues include local and log distance voice, data & VAS and other revenues related to enterprises.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.
14

15. Data and VAS Revenues Forecasts
Mobile Enterprise Service Revenues: Revenues and Percent of Data and VAS Forecasts
(Latin America), 2010-2016
CAGR Revenues: 8.6 percent
CAGR Data and VAS Revenues: 18.7 percent
25,0 25,0
Percent of Data and VAS (%)
20,0 20,0
Revenues ($ Billion)
15,0 15,0
10,0 10,0
5,0 5,0
0,0 0,0
2010 2011 2012 2013 2014 2015 2016
Revenues ($ Billion) 13,6 15,2 16,7 18,2 19,6 21,0 22,4
Percent of Data and VAS (%) 12,4 13,5 14,8 16,2 17,7 19,4 21,2
Note: Revenues include local and log distance voice, data & VAS and other revenues related to enterprises.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.
15

16. Conclusion
16

17. Conclusion
The Mobile Enterprise segment is expected to increase its importance in the
total mobile market, and is likely to play an important role regarding the
development of advanced applications for Latin America.
Strategies of mobile operators to further penetrate the SME segment are the
main driver for the market growth from 2011 to 2016.
Regarding Voice services, there is an increasing trend of unlimited call plans as
voice traffic becomes commoditized.
The main applications currently commercialized are Business Email, Mobile
Office and Field Force Automation (FFA). Cloud computing, M2M and Video
Transfer are promising applications for the years to come.
Smartphones and tablets, along with Mobile Broadband connectivity, will have
an essential role for this application dissemination and for the Mobile Enterprise
services market as a whole, but security issues remain a challenge.
The key decision is not whether enterprise wireless solutions are required or not,
but, how best could the mobile workforce be equipped with such scalable
applications, with a low cost and with the required return on investment.
17

18. Next Steps
Request a proposal for or Growth Partnership Services or Growth
Consulting Services to support you and your team to accelerate the growth of
your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678)
Join us at our annual Growth, Innovation, and Leadership 2011: A Frost &
Sullivan Global Congress on Corporate Growth (www.gil-global.com)
Register for the next Chairman’s Series on Growth: Driving Innovation – The
What, Why, and How. Visions and Benchmarks as the Innovation Key
(October 5th) (http://www.frost.com/growth)
Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep
abreast of innovative growth opportunities
(www.frost.com/news)
18

19. Your Feedback is Important to Us
What would you like to see from Frost & Sullivan?
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by rating this presentation.
Frost & Sullivan’s Growth Consulting can assist with your growth strategies
19

20. Follow Frost & Sullivan on Facebook, LinkedIn,
SlideShare, and Twitter
http://www.facebook.com/FrostandSullivan
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
http://twitter.com/frost_sullivan
20

21. For Additional Information
Tatiana Brull Fernando Serra
Marketing Communications Executive Sales Director - Latin America
(55) 11-3065-8445 (52) 11-4777-1550
tatiana.brull@frost.com fserra@frost.com
José Roberto Mavignier Renato Pasquini
Industry Manager – Latin America Industry Analyst – Latin America
ICT ICT
(55) 11-3065-8463 (55) 11-3065-8433
joseroberto.mavignier@frost.com renato.pasquini@frost.com
21