WEF 2008 NRI: BAD NEWS FOR LATIN AMERICA
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1 FUTURE SCENARIOS FOR LATIN AMERICAN COMMUNICATIONS II FUTURE TELECOMM SERVICES Adriana Labardini 1 WEF 2008 NRI: BAD NEWS FOR LATIN AMERICA Ranking out of 127 nations Chile 34 Mexico 58 Brazil 59 Costa Rica 60 Panama 64 Salvador 66 Colombia 69 Argentina 77 Network Readiness Index: Ecosystem Bz environmnet Legal environment Infrastructure Readiness to use ICT Actual USE of ICT 2 1
2 CRITICAL ISSUES COMPROMISING CONSUMERS ECONOMY & OPPORTUNITIES High concentration in Broadband by incumbent. Low penetration High per minute prices & expensive handsets. High per Kb charges for Data High Roaming charges Opacity in rates & commercial practices Spectrum made scarce and expensive by Government. Not a wise call. Interconnection a huge business, curtailing growth of off net calls. 3 SERVICES PENETRATION Fixed Telephony, 2006 (Lines / 100 inhabitants) Switzerland Germany Canada UK US France Korea Spain Brazil Chile Mexico Mobile Telephony, data 2006 (Subscribers / 100 inhabitants) UK Spain Switzerland Germany France Korea US Chile Brazil Mexico Canada Canada UK France US Germany Spain Chile Mexico Brazil Courtesy of SCT with ITU Broadband, 2006 (Subscribers / 100 inhabitants) Korea Switzerland
3 YET THE GOOD NEWS ARE HIGH MOBILE PENETRATION Will mobile phones be the drivers in LAC for Broadband applications as opposed to PC s? If so, what applications do users want? Will m-banking trigger ICT readiness? Are we ready for m-banking in LAC? Will m-loans follow? Are these uses equity oriented? 5 Will mobile phones be the drivers in LAC for Broadband applications as opposed to PC s? 60 million Mobile phones in Mexico: wide coverage Prepaid/minute rates still high up to $0.40/min 1 Call a day + SMS= Low use Domestic Roaming 0.28 min. + LD =0.23per minute+high ICX rates Expensive offnet calls: $0.34/min Data transmission= $ 0.014/Kb Source Telcel Plan sin fin rates
4 Will mobile phones be the drivers in LAC for Broadband applications 3G flat rate plans $68 + airtime plan 3G $29/month up to 150Mb+ %0.005/Kb Costly Handsets, too many unused features, Open source software may reduce the cost Affordable flat fees for data may trigger more use. Affordable credit to 3G and smartphones Source Telcel Plan sin fin rates M-BANK Readiness foundations still a pending task in LA for Governments and Markets. More spectrum for Broadband Security of transactions Privacy protection laws and systems Automated banking (ATM s + Online Banking) costs reductions not transferred to Customers. Digital literacy crusade Why not through Mobiles? M-remittances and pay-roll could be a good start 8 4
5 9 CUSTOMER DRIVEN POLICIES & APPLICATIONS Video clip Tutorials to improve D-Literacy Affordable Wi Max Spectrum made available Wi Fi and Wi Max Cellular Phones for VoIP Market Incentives to allow access? Net Neutrality to choose Contents Transaction Costs reduced= Lower prices Emphasis on Security measures Effective Privacy Protection Rules (Spam/Phishing + Fraud ) BOP Smartphones (Affordable&User friendly) (Math tutorials in mobiles for ninth graders in North Carolina) 10 5
6 PRO EQUITY &DEVELOPMENT,APPLICATIONS M-remittances with Ethics= No hidden fees Community based networking & contents Education contents Tutorials, e-books Virtual Farmers market VoIP key driver of BB GPS & GIS Regional Commodities prices Community information (GIS) Software interoperability 11 PRO EQUITY &DEVELOPMENT INFRASTRUCTURE & APPLICATIONS REVOLUTIONIZE POST OFFICES: Widespread points-of sale. Innovate, promote PC at home and efficient, safe deliveries. R&D: WHAT LATIN AMERICAN CUSTOMERS WANT SPECTRUM FROM ANALOG TV: Should go to Broadband UNLOCKED HANDSETS= PORTABILITY TV SETS 93% HOUSEHOLDS HAVE ONE. PACKAGED CONTENTS IN MOBILE PHONES FOR RURAL PEOPLE 12 6
7 PRO EQUITY &DEVELOPMENT INFRASTRUCTURE & APPLICATIONS REVOLUTIONIZE POST OFFICES: Widespread pointsof sale. Innovate, promote PC at home and efficient, safe deliveries. R&D: WHAT LATIN AMERICAN CUSTOMERS WANT SPECTRUM FROM ANALOG TV: Should go to Broadband FIBER IS IMPORTANT. UNDERESTIMATED IN LA UNLOCKED HANDSETS= PORTABILITY TV SETS 93% HOUSEHOLDS HAVE ONE. What do we do with them? PACKAGED CONTENTS IN MOBILE PHONES FOR RURAL PEOPLE 13 7
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