In this interview, Christiams Valle Gomez of Telefónica Perú shares his knowledge on the Latin American market, including his predictions for the region, which Latam markets he expects to drive most growth and how legislation has played a major role in promoting MVNOs.
As highlighted in the report ‘Shaping the Latin American MVNO Market’, growth in the Latam region has not yet happened as expected or planned, but with recent government regulations there is a significant opportunity to be grasped. Ahead of MVNOs Latin America in Mexico City, one of the speakers and expert in the region brings you further insights into this emerging market.
What are your predictions for MVNOs in the Latam region?
For MVNOs, the initial challenge lies in addressing the volatility that has characterised recent years, something that is strongly related to the business strategy they have been pursuing, which is normally based on trying to compete on price. It’s time to address this challenge with a different vision. Despite the unfavourable outlook, advances in technology will be the main driver of MVNO development.
What are the main challenges facing MVNOs and how can these be overcome?
Without a doubt, one of the fundamental challenges is finding the ideal business model. The current drop in mobile prices has created instability for MVNOs, transforming the B2B market into both an opportunity and a challenge. On the one hand, there is the opportunity to monetise specialised services and products for the business sector. On the other, there is the challenge of coming up with a strategy that targets a defined niche, taking into account key aspects such as the useful life of clients, barriers to entry and acquisition costs.
How does legislation help promote the growth of the MVNO market in Latam?
In recent years, legislation has played a major role in promoting MVNOs, largely by countering the dominance of traditional operators. However, it is still necessary to evaluate the specific business models, ensuring free agreements between network operators and MVNOs. Argentina, Chile, Mexico and Brazil are leading the way on these issues.
Which countries will be most important in driving growth in the LatAm region? Please explain why.
There are certainly countries in the region that offer major opportunities for MVNOs.
Definitely Brazil, with a population of 200 million, whose market is a major focus MVNO growth on account of its size. The country has also had specific legislation for virtual operators since 2010. Also, Chile which has become the country in which virtual operators have the greatest presence, with the level estimated to reach 15% of the market in the coming years.
Meet with Christiams Valle Gomez at the MVNOs Latin America 2018 where he’ll speak on ‘managing risk in the digital era while launching new services’.