Devising inventive business plans

By : |September 19, 2008 0

BUENOS AIRES, ARGENTINA: With the saturation of the large end-user segment, data communications services operators are rearranging their operations and devising new strategies to target smaller clients and new niches. These novel business plans are vital to maintain healthy revenue growth rates, given the maturity and high levels of competition in the Latin American data communications services markets.

New analysis from Frost & Sullivan, Latin American Data Communications Services Markets, finds that the market earned revenues of $7.84 billion in 2007 and estimates this to reach $10.53 billion in 2013.

Service operators have to be on top of their game and be proactive and innovative in providing solutions, applications, technologies, and products – especially to the small- and medium-sized businesses (SMBs).

“The country assessment shows that the main markets are Brazil, Mexico, and Argentina, in accordance with their gross domestic product (GDP), underlining the importance of economic growth for market development,” says Gina Sanchez, Research Analyst at Frost & Sullivan. “Valuable opportunities are also derived from the overall migration to IP, creation of customized solutions for SMBs, and the bundling of data services with IT, telecom products, and managed services.”

To further penetrate the intensely competitive services market, service providers are creating new strategies to educate SMBs on the advantages of data communications services over basic Internet solutions.

Although the aggressive competition could affect business profitability, it could also compel the participants to think innovatively to gain a competitive edge. Many operators have quickly adapted to the market situation and greatly improved the quality of their services and post-sales attention.

“The number and quality of services offered have been on the rise since the introduction of technologies such as Metro Ethernet and Gigabit Ethernet, which are complemented with IP/multiprotocol label switching (MPLS) networks,” notes Sanchez. “In this scenario, operators may reduce prices, encouraging greater uptake of services.”

Latin American Data Communications Services Markets is part of the Communication Services Growth Partnership Service program, which also includes research in the following markets: enterprise communications, mobile and wireless, IT applications and services, network security, and contact centers. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company’s TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

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