América Móvil Global Wireless Customers

Latin American Telecom Sector Overview
Broadband in Latin America
Challenges
Market Opportunities
Conclusions
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SELECT MARKETS
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Brazil (pop. 191M)
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41.1M wireline users
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152.4M wireless users
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76M Internet users
Chile (pop. 17.2M)
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3.6M wireline users
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17.6M wireless users
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1.7M Internet users
Dominican Republic (pop. 9.9M)
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963K wireline users
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8.5M wireless users
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305K Internet users
Mexico (pop. 112M)
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20.6M wireline users
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83.1 wireless users
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9.4M Internet users
Sources: TeleGeography, Internet research
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Telefonica’s Fixed/Mobile
Latin American Presence
as of Oct. 2009
Argentina – 21.4M
Brazil – 64.2M
Central America – 6.1M (Guatemala,
Panama)
Chile – 10.4M
Colombia – 11.5M
Dominican Republic
Ecuador
Peru – 15.7M
Puerto Rico
Uruguay – 1.6M
Venezuela
Total Regional Customers – 164M
Sources: Company websites, Wikipedia
América Móvil Global Wireless Customers
as of Dec. 2008
México - Telcel 56.4M
Brazil - Claro 38M
Colombia - TELMEX Colombia, Comcel Colombia
27.4M
Argentina Paraguay Uruguay - Claro 17M
United States Includes Puerto Rico and the US
Virgin Islands - TracFone Wireless 14M
Guatemala Nicaragua El Salvador Honduras
Panama - Central America Claro 9.2M
Ecuador - Porta 8.3M
Perú - Claro 7.2M
Puerto Rico Dominican Republic Jamaica Caribbean Claro 4.8M
Chile - Claro 3.0M
Global Wireless Customers – 183M
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Latin America
is a cultural force
It is a young society
It is mostly in urban areas
145M Internet users in Latin America
High levels of video, social networking,
and instant messaging usage
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Broadband in the region relies on private initiatives as competition
continues to drive growth. Throughout the region, broadband is part of
public policy.
Brazil
In 2009, Brazilian telecom regulator, ANATEL, decided to enhance rules on domestic
broadband service providers regarding customer service and speeds.
Has a national broadband plan.
90M users by 2014 (fixed/wireless).
50% penetration rate needs to be reached during the next 4 years.
Public-private partnership plans.
21K kilometers of public utlity of fiber networks to be used.
Chile
In 2008, government announced its 2007-2012 Strategy for Digital Development.
Reach 2M users by 2010.
Advance the digitalization of the public health system.
Public-private partnership plans.
Public auctions to expand broadband connectivity financed by the Telecom
Development Fund.
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Dominican Republic
In 2009, telecom regulator, INDOTEL, announced plans to roll out fixed
line telecom services to an additional 1K rural communities as part of an
initiative aimed at providing broadband and home voice services to all
towns with more than 300 inhabitants.
Broadband expansion has been slowed due to a 28% tax levied on all
telecom sales.
1998 Telecom Law is being reviewed and is expected to be updated.
More investment needed in IT to take advantage of growing broadband
penetration and stimulate demand for services.
Lack of reliable electricity is one of the greatest challenges hampering
broadband growth in rural communities and nationwide.
Mexico
Telmex believes the goal to connect 15M to broadband by 2012 is
impossible.
By 2012, the government wants 70M people connected to the Internet.
Approximately 20% of the population has Internet access.
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Broadband rates remain high compared to rates offered
in markets with high penetration, combined with low
income per capita levels.
Low PC penetration is common.
Users generally don’t have much knowledge of
broadband and may be satisfied with narrowband
services.
Problems with installation of infrastructure.
Existing last mile infrastructure is at low levels.
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Growing adoption of Internet-based services
such as e-banking, e-government, and ecommerce are contributing to greater
opportunities.
Increasing subscriber numbers and broadband
uptake are driving revenue growth.
Competition is fierce and operators, particularly,
incumbents need to diversify and improve their
market positions in the broadband and Internet
segments.
Mobile services and data are the future.
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Investment decisions need to be based on regulatory certainty,
transparency, and stability.
Don’t disregard wireless and data, these services are the future,
such as mobile broadband.
Public-private partnerships work and have been helpful in
lessening the digital divide.
Public financing is important in areas not reachable by private
investment.
Broadband access must be technologically neutral.
Each market should review its universal service fund to
determine how it can be used to increase broadband
penetration and adoption.
Each market should also review its spectrum allocation plans to
see how spectrum can be used in the broadband arena.
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