The South American Market
Battle is heating up in Latin America to corner the maximum share in telecom services. Companies like Telefónica are bundling fixed line- mobile services to retain customers and capture new market. The advent of digital technology allows telcos to provide high-speed internet access, video on demand and voice communication, through broadband connection. As is the case in the regions with a sizable population being poor, in Latin American countries too most of the mobile connection is pre-paid (80% in Brazil). Increasingly Average Revenue Per Unit (ARPU) is decreasing as the competition heats up between telcos. Value Added Services (VAS) have been the best bet in boosting the ARPU in such markets. This has been seen in countries like China, India and others.Â
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