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Business Development in Latam Telco market
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Business Development in Latam Telco market



Snark Consulting provides business development services in order to start operation in Latin America.

Snark Consulting provides business development services in order to start operation in Latin America.



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Business Development in Latam Telco market Business Development in Latam Telco market Presentation Transcript

  • Business development in LatAm Telco market May 2010 Daniel Collico Savio Director [email_address] http://www.snark.com.ar
  • Lat Am telco context: three sides of the story
    • About 30 prospect Telcos comprising 90% of customers
    • Two dominant groups: Telefonica /Movistar and Telmex / Claro.
    • Strong competition around big cities:
      • Mexico DF, Sao Paulo, RJ, Buenos Aires, Santiago, etc.
    Telcos Regulators Customers
    • No broadband regulation in most of the countries
      • Exception: ANATEL, Brazil
    • Lacking of knowledge.
    • Most concerned about old PSTN issues
    • Demanding higher speeds and better user experience
    • Complains about P2P restrictions
    • Broadband lines
      • 40M fixed
      • ~9M mobile
  • LatAm Basic figures
    • Fixed broadband customers: 35M
    • Top Penetration countries: Chile (11%), Argentina (10,5%), Brasil (7.5%), México (6.0%).
    • Average speed
      • Chile, Arg, Brasil, Colombia, México ~1,5 Mbps
      • Rest of LatAm < 1 Mbps
    • ………………………………………………………………………… .
    • Mobile customers: 520M
    • 91% GSM-HSPA technology.
    • Still low penetration of wireless broadband ( ~ 4%)
    Source: FayerWayer, Datos Claros, 3GAmericas. and CNN (April 2010)
  • A tale of two big Telcos
    • Telefonica Group (including brands Vivo and Movistar)
    • Telmex / Telcel ( América Móvil / Claro (Carlos Slim group, different branding per country).
    • Very distant competition from Millicom, Telecom Italia, C&W, etc.
    Investment in mobile operators in CALA region in 2008 (Source ITU)
  • Business main drivers
    • Speed / QoS improving vs Diminishing Capex
      • Concern: average speed in the region is below 1Mbps.
    • Web 2.0 integration with Telco´s services
      • Speedy 2.0 (Telefonica)
      • Myriad platform (Movistar)
      • Redes Sociales Ideas (Telcel)
      • Oi Paggo (Brazil)
    • “ The Cloud” effect
      • Oportunity or threat?
      • Customers: “Don´t want your webmail, Napster or Google-like map. Gimme speed, handsets and clear billing instead”
    • Go wireless.
  • Business case: Brazil
    • Divided in regions for fixed. TeleSP is huge in Sao Paulo.
    • Four competitors for a very balanced mobile market.
    • Telmex not there, but Claro and TIM are attacking Vivo.
    • Highlights:
    • Division Sao Paulo / Total for all stats.
    • 176M mobile customers, about 90% of them are prepaid.
    • TV Cable and ip technologies.
    Sao Paulo Total 1 1 2 2 3 3 Fixed Mobile TV Source: Snark Consulting, www.teleco.com.br and media (April 2010)
  • Summary
    • Two big accounts, Telefonica and Telmex-Claro.
    • Go for the 80% of the market / don´t waste time in Central America or minor countries in South America.
    • Some tips for business development
      • Respect strong management and central coordination
      • Send compatible messages to Telcos HQ in EC and US
      • Look after “try & buy” and “managed services” concepts.
      • Expect some delays in negotiations
      • Forget about meetings during football World Cup.
      • Spanish language is mandatory
    • Play fair
      • Avoid “cheap revenue share” local pushers.
      • Telco means long-term business.
    • Business development from the ground up for foreign Telco providers and vendors.
    • Access to a network of contacts within all LatAm operators.
    • Sizing the business
      • Estimation of required resources and time involved
      • Development of business plans
      • Roadmaps, and weekly reporting.
      • Webex sessions & demos
      • Meetings with customers.
    • Contact
      • http:// www.snark.com.ar
    Snark Consulting biz dev means…