Low-End Latin America Wireless Market Is a Huge Opportunity With Hidden Pitfalls

Monday 7 June 2004 14:42 CET | News

The Latin American wireless market has quickly reached saturation in the high-end segment. According to the Yankee Group report, Counter to Intuition, the Low End of the Wireless Segment Has Lofty Potential, operators see an enormous pent-up demand in the low-end segment.

However, given the lack of prepaid fixed-telephony services, the only alternative for these users is prepaid mobile services. As they join, revenue per user is pushed down, and operators wonder if it is worthwhile to grow the customer base with this segment. Low-income users have limited access to telephony services and are a large potential market for mobile operators. Fixed-line operators have avoided prepaid services, fearing postpaid-to-prepaid churn would affect subscription revenue. Low-income populations spread far from the expensive metropolitan areas. Theoretically, these individuals spend less time at home and more time in motion, commuting to and from work.

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Categories: Payments & Commerce | Mobile Payments
Countries: World
This article is part of category

Payments & Commerce