Mobile Messaging Revenues to Reach $4bn in Latin America by 2009

Press Release:

Mobile Messaging Revenues to Reach $4bn in Latin America by 2009

Press Release
News Article February 2005

CAMBRIDGE, Mass., Feb. 25 /PRNewswire/ -- According to a new report from Pyramid Research, Latin American operator revenues from mobile messaging will increase from US$1.3bn in 2004 to US$4.0bn in 2009, a compounded annual growth rate of 25%. According to "Mobile Messaging Trends in Latin America," the opportunity extends also to content providers and vendors as increased usage of basic services drives demand for more sophisticated applications.

Report author Marc Einstein comments, "Mobile messaging adoption in Latin America has always lagged behind global uptake due to high tariffs, cross network interoperability issues, limited enabled handsets, and lack of mobile content." Progress made in 2004 on these fronts will continue to drive adoption. Einstein added, "Mobile messaging users will top 260 million by 2009 -- a 400% increase from 2004."

The mobile messaging market will buffer Latin American operators from declining average revenues per subscriber (ARPS) and allow operators to stabilize their wireless revenues. Einstein adds "ARPS from messaging will increase from 6.1% of operator revenues to 16.3% by 2009 in Latin America." The greatest imperative for the region's operators is to aggressively push for mobile messaging adoption by offering fresh, innovative content and new applications while keeping voice cannibalization at a minimum.

For more information, visit Mobile Messaging Trends in Latin America.

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