Secret to Multiplay Success in Latin America Requires Mass Market Appeal, Finds Pyramid


CAMBRIDGE, Massachusetts, June 26 /PRNewswire/ --

As operators continue to exhaust the high-income consumer segments in 
Latin America, the bundling strategies with the best chance of success 
involve broadened offerings that will attract lower-income households to 
broadband and pay-TV, according to a new report from Pyramid Research
(www.pyr.com), the telecom research arm of the Light Reading Communications
Network (www.lightreading.com).

Multiplay Services in Latin America: Operators Target the Mass Market
examines the multiplay strategies of several leading operators in Latin
America and the rationale for engaging customers outside the higher-income
population segments. This 12-page report compares the cost of multiplay
services across several markets to demonstrate that there is potential for
costs to come down in Latin America, which would boost penetration. Case
studies of two integrated operators -- NET Servicos in Brazil and Claro in
Central America -- examine the strategic challenges and choices involved in
expanding target markets through bundling. Download an excerpt of this report
here: http://www.pyr.com/downloads.htm?id=5&sc=PR062609_INLA1.4. Multiplay
Services Forecasts (http://www.pyramidresearch.com/multiplayfcst.htm) are
also available and provide service demand and revenue trends for bundled and
blended telecom and media products worldwide.

In Latin America, bundling has gained traction in the last three
years as fixed operators expanded into the pay-TV market and cable operators
pushed further into traditional telco territory. So far, bundling has
attracted mostly people in high-end socioeconomic groups who can afford these
services; however, the value proposition of operators is being challenge,
notes Jose Magana, analysts at Pyramid Research and author of the report.

"Given that Latin America's GDP per capita was US$7,856 in 2008,
operators must face the fact that to keep penetration of fixed services
growing and meet revenue expectations, they will soon exhaust the high-income
consumer segments in Latin America," says Magana. "Therefore they must start
developing strategies to attract lower-income households to broadband and
pay-TV by offering an assortment of bundles," he adds.

Although selling to lower-income consumers is a challenge, they
also represent an opportunity to reap considerable benefits because of the
significant size of the populations. "The challenge is to find the right mix
of prices, and differentiation, such as higher broadband connection speeds,
pay-per-view content, and specific pay-TV packages, will be crucial to
increasing uptake of packages and helping to contain the decline of ARPS," he
explains. "The addressable opportunity for operators is to gain access to the
70 percent of households that remain underserved in Latin America -- if
operators can access at least half of those households, they will easily be
doubling their service base in terms of customer relationships," Magana says.

Multiplay Services in Latin America: Operators Target the Mass Market is
part of Pyramid Research's Latin America Telecom Insider report series.
Telecom Insiders are packed with trend analysis, industry best practices,
market sizing and forecasting, competitor analysis, and case studies,
providing you information you can leverage to make better business decisions.

Download an excerpt of this report here:
http://www.pyr.com/downloads.htm?id=5&sc=PR062609_INLA1.4. This report is
priced at US$595 and can be purchased online here:
http://www.pyramidresearch.com/store/ins_la_090619.htm?sc=LR070109_INLA1.4 or
by contacting Jeff Claudino via email at claudino@pyr.com or telephone at
+1-619-229-9940.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries-a
distinction that has remained unmatched for more than 25 years. As the
telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's
most comprehensive market data, trusted research and insightful technology
analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading
online media, research, and focused event company serving the US$3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading's
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
our communities created around our global face-to-face events, Interop, Web
2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly
connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM's businesses inform markets and serve
professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated
events, online, print and business information products. Our 6,500 staff in
more than 30 countries are organized into specialist teams that serve these
communities, bringing buyers and sellers together, helping them to do
business and their markets to work effectively and efficiently. For more
information, go to http://www.unitedbusinessmedia.com.

Press contact:
    Jennifer Baker
    +1-617-871-1910
    jbaker@pyr.com



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