Latin American next-generation access technology strategy
Advanced telecommunication technology, products, and services are coming at a quickening pace as companies stretch to keep up with consumers’ changing habits and needs. Telco technology innovations have been dramatic. They include: WiMAX, HSPA, next generation IP networks, new service packages, and creative pricing plans (such as quad play).
Although mobile operators in Latin America have not been on the forefront of innovation, they are now leap-frogging to catch up. As the demand for wireless services explodes, they are introducing new data and value-added service offerings, allowing them to strengthen their ARPU position and at the same time counteract the commoditization of pure voice services.
Challenge
A Latin American mobile operator group wanted to develop a position for future growth and capture new sources of revenue from data and value-added services.
But to embark on a next-generation technology path, the group needed to make a long term technology decision and answer questions requiring analysis and market insight. Could mobile WiMAX be an alternative to the conventional evolution of UMTS or CDMA mobile access technologies? Should the evolution of a 3G path to LTE or UMB be pursued, or would a combination of different technologies provide a sustainable competitive advantage?
Approach
A.T. Kearney worked with the marketing and technology team of the operator group to develop its next-generation access technology strategy. Key aspects included:
- In-depth assessment of international wireless access technology trends and implications for the Latin American mobile market – including HSPA, LTE, CDMA RevA and RevB, UMB, as well as mobile WiMAX
- Next-generation technology options with positioning scenarios from converged infrastructure player to limited infrastructure player, including network and capability requirements, transition outline, and implementation feasibility
- Definition of investment requirements and business case, based on detailed modeling of top-line, access, and core technology implications
Results
The technology strategy recommended that the group pursue a conventional 3G evolution path, given the strong technical performance, cost advantages, broad product availability, and secure path for future evolution. The strategy also provided a clear vision and action plan, including:
- Preferred 3G mobile access options across Latin American target countries, with frequency spectrum acquisition strategy and a migration plan for each market
- Investment plan for each target country
The company is currently acting on its next generation technology roadmap, ramping up deployment, and is well on the way to becoming a leader in providing wireless broadband services.
Contact
|
Bernhard Kickenweiz is a principal in A.T. Kearney's New York office.
