LatAm Market Briefing 2013 - Page 17

market focus_market focus 12/07/2013 17:56 Page 4 ormer are choosing DTH technology when venturing into the pay-TV market, particularly where regulations restrict IPTV roll-outs. Faced with declining revenues in their core segments and in need of new revenue streams, regional operators are keen to include mobile services among their offerings. According to Pyramid Research broadband penetration growth, coupled with a rising appetite for OTT video, poses significant opportunities for telecom operators to expand their service portfolios to include OTT video services and gain a competitive advantage by developing attractive bundling propositions. In Latin America, more and more consumers are subscribing to multiplay packages. These packages generally consist of a combination of fixed telephony, fixed broadband, payTV and, increasingly, mobile voice and data. To address the multiplay opportunity and faced with threats to their core business from non-incumbent providers, regional operators have built partnerships, enhanced and acquired network assets to expand their service portfolios, to ultimately lure and lock in subscribers with multiplay packages or multi-service bundles. Total multiplay services revenue grew from US$10.2 billion in 2008 to US$18.6bn in 2012, and Pyramid Research expects it to continue growing at a CAGR of 9.4% between 2012 and 2017. It believes that revenue generated by doubleplay offers will make up 55% of total multiplay revenue in 2017, down from 68% in 2012; triple-play offers will make up 39%, up from 31% in 2012; and quad-play offers will make up the remaining 5% (see Exhibit 4). Double plays are and will continue to be the most widely adopted packages in the region, although Pyramid Research expects take rates for triple-play offers to increase steadily as service operators continue to focus on upselling current double-play subscribers, especially low- and mid-market subscribers. As of the end 2012, 28% of households in the region subscribed to some form of multiplay package, a penetration level well behind those of the US and Western Europe - 60% and 58%, respectively. This provides telcos and cable companies with ample room to grow, suggests Pyramid. Multiplay household penetration varies greatly across countries in the region, as does the breakdown of total multiplay service offerings (see Exhibit 6). Legal and regulatory constraints in countries like A ??[?[?H[???Y^X??]?H?[??YX?YH????][\^H??\??][??YH^KU??\??X?\?\?X[H?\K\^HX??Y?\?[??\???H?\?HY?[?\??Y\??[???Y?]????Z[??[???[?^KU???Y\??]?H[?\?Y[????[Y\??X[Y?Y[Y[???]??\[Y[?\?H??Y\?????X?]?[HX\??][?[]?\?Z\??\??X?\?[?H??H??[?\?[? ? LK?X?H?[?\?\?[?YH?[??^KU??\??X?H?]?[?YH[?H?Y?[??]\?[ZY?\?X\??^X?[??]???[?YH???[??[?Z]]X????\?[??\?X?????Y\?H?\?\? Y???[??^KU?X?????H[?H?Y?[???H\???\?YX\??\??Y[??][]H?[?\?[ZY^X??]???[?YH???[??]H?Q?? M?H??Y?? ? M? ?YH^X?] ?K?[???YH??[??Y\??X?\???^?[[??[?^?Y[K?][]H^KU???[????X??YHH[????[?][?[Y\?X?K[?H[?[?H???[Y\??\?H?X???X?[???][\^HX??Y?\?????Y?[? Y\[?[? T X?\?Y?Y[??\??X?\??[??H^H?[?]?\?Y?HH?]???[???\??X?\?H^H[?XYH]?H[?X?K?[?Y][?[????[?]?\?Y?HZ\??[][??\??]^\?[???\??Y\?????[[??\???\???Y][???]?^??[??&]??[?]^[?Y?][?[Y\?X?H[???[???X?[??^[Y[?????H?X???X?\??HXZ????X?K\?H?\?[?H?Y?[??&\????Y]?\?[?]?][???^H?[?[???[?H][?[Y\?X?H?\?]??\???][\^HX??Y?\?[??[?\?\?X\??][?[??Y?Y\??\?[??YN?]?Y[??H????]??Y?][\^HX??Y?\??\?]???[??YX?H?X???X?\??\??\??[\?[\??HT??[??[?\?]H[??[Y[?[?]?[?YK?H?[]]?[H???\?Z?][\^H[?]?][?]?[?[?][?[Y\?X?H H ? H\??H[?? ? L? H??YH?\??X?H?\?]???]??\[[????[?]Y\??[?\??]?X\??]?[?][??][\^HX??Y?\???\??Y[??X?Y\?^H[?[\?[???H[??\[???\?]???&H?[?[????]Y?Y\??\??X?H??Y\???\?][??[???[??Y\??\?H?Y?[]?H??Y\??\??X?[H???H??\?[??H?X?Y?X??\??X?H]?H???Y??[Y\??X[Y?Y[Y[???]??\[Y[?\?H?\??X?H??Y\????[?HZ\??\??X?\?H[Y\??[??H?H \?][]H??\?[H?\?[?\??[?[\???\?[??[??H?\??Y\????^Y\???Z[???][???\?][??[??]?X\??]????[Y\??X[^?[??^KU??\??X?\??[?Y?]?\?[X??H?\??X?\?\?H?\?[ ??[????X??YHH[??Y?Y^KU?X?????H[?H?Y?[??\?\??[???X?K??X?Y?]X?[?[???]?[?YH[?X\??]?]\?][?[?Z\???H?Y?Y[??[??]H?YY?]?[??]??]?[?YH??X[\?[??X???X?\??X[K?\?]??[?][?[Y\?X?H\?H?Y[??[??\??X??[?X[?\??\??\??[????]H[??Z\???[Y\??X[??\?[???[?[H??X?K[?[H???Y?[?[??KQ?K??]?[?H???X???[??X\?[?????Y?[?[?]?][?[?H?Y?[?XZ???\?]??\?H[?[??[??H??Y[??\?[?\???H]?[?[??Z\???]??\?\?H?\?]????[????H[????][????Y[?[?Z\??[?Y??\?????Y[HY?YX?????K?\?\??[???X?K?\????\?\?H^Z[?Y?HHX???[???\??X?\?H[?H\??Z[???X?\??[?[??\?[\?X\?[?H?Y?[??\?H?X?H[???\??X?\?H\???X???ZX?[H?XX?H?\?K??\?\??Y?Y?X?[? ?Y??\??\?[ZY \??Y[?H?[???\??[?[???X?\??[?YH?]??[\??[??[????Y\??[???[??X?H??\[?Y\??Y?[?[H?\??Y\?[??X\??]??]?]H[???X?[??T?]???[??^H]?H??[?[\?[?\???Y[??H?[YH?\??X?\?H?]X][?]\??Y[Y[?[??H??\]][??]?Y[?[K?[????YH?X?H??Y\??\??Y??\???]\?H?]?[?[???Y\??[??X?H?\??KXZ?[????X??][??]?Y[?[H??\X?]Y ????\]Y[?K][?[Y\?X?[?[??????[????[?\?H[??H^KU??Y?Y[?\?H\?[??X?????H[????X?K?[?Y][?\??\??Z]Y???\YH?XX?[??H???Y\??[??H????[Y\??[?[?\??\??Y\?X\????\??[K\?[ZY?\?X\???Y??\??]?^Y?\?]??[??X?H??\[?Y\?\?H?\???][?Y??\\?HH?[YH?X]Y?B??USH??YY?[?? M??