EXECUTIVE SUMMARY
this month ’ s series :
Smartphone fever
Consultancies have been publishing
impressive growth projections for
smartphone sales in Latin America
and globally this year, and Pyramid
Research goes as far as projecting
38% CAGR for smartphone sales in
Latin America through 2014.
Enter apps
Carriers tolerate free apps, and
even free apps from outside their
own app store, because it is
the apps that will then go on to
encourage internet surfing via the
handset.
SMS is still king
In Brazil messaging accounted for
50% of VAS revenue in 2009, close
to the global average of 53%, but
this glosses over the fact that SMS
traffic per user is very low, meaning
operators can rapidly increase VAS
revenue by promoting SMS services.
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Mobile VAS update: Everybody
wants a smartphone
Our previous Mobile VAS reports highlighted
how SMS services account for the bulk
of mobile operators’ data revenue in this
region, and will continue to do so going
forward. However, no one can deny that
smartphones and apps have caught the
imagination of operators and consumers
alike, and will prove to be an important part
of the offering.
Even so, the region has relatively low SMS
throughput figures compared to developed
countries, not to mention low broadband
penetration, and mobile operators are well
aware of the growth opportunities in both
these segments.
SMS as percent of total VAS sales, Brazil 4Q09
Voice VAS
86% 14%
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May 2010
Smartphones have a window of opportunity to
capitalize on this potential, but must battle it
out against laptops and feature phones that
are constantly becoming more versatile.
All in all, the mobile operators are spoiled for
choice in terms of VAS niches that they may
wish to prioritize, and some of them have
sufficient resources to tackle all these niches
simultaneously.
In this fourth edition of our Mobile VAS
Intelligence Series, we see how smartphones
and apps are the springboard that is giving
impetus to a whole world of alternative VAS
services aimed more at the average consumer.
Internet
36%
Others
14%
Messages
50%
Source: Acision, Teleco
 Written and researched by
Phil Anderson

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