Radio access networks will evolve to provide solid platforms for new services and applications, making mobile broadband the main driver of revenue growth for mobile operators in Latin America, according to the latest report from Pyramid Research.

From 3G to LTE: Latin America's Path to Mobile Broadband focuses on mobile network technologies, analyzing their role in building dynamic mobile broadband markets across Latin America. In this 23-page report, Pyramid examines the state of network technology adoption to identify the role of dominant standards in mobile data growth. We also look at how competitive pressures from CDMA EV-DO and Mobile WiMax are boosting that growth, and whether strategic decisions by alternative mobile operators could accelerate 4G uptake. The report ends with three case studies of specific conditions in and expectations for Brazil, Chile, and Mexico.

Radio access networks will enable new services and applications that will make mobile broadband the main revenue growth driver in Latin America due to three main catalysts, notes Cesar Jimenez, analyst at Pyramid Research and author of the report. The first catalyst will be the use of common platforms, which will allow operators in the region to access greater economies of scale when deploying their network. "Pyramid expects UMTS/HSPA to be the primary access platform for mobile broadband services over the next five years, which will dominate high-speed mobile connectivity in Latin America, followed in time by the next dominant mobile broadband platform, LTE," says Jimenez.

Second, existing CDMA EV-DO networks and the potential arrival of Mobile WiMax systems are raising the intensity of the overall battle for mobile broadband adoption. "Pyramid does not see CDMA EV-DO or Mobile WiMax as real alternatives to LTE in Latin America after 2011; however, we do expect these platforms to be options at the current 3G stage for some niche operators, playing an important role by making the overall race for mobile broadband deployments more competitive," Jimenez explains.

Third, Pyramid expects market entrants and existing challenger operators to deploy LTE networks within the next three years, which will fuel competition and will drive up revenue. "Operators such as NII Holdings and Iusacell, as well as any new players entering the market through upcoming spectrum auctions, will seriously consider moving directly from 2.5G to LTE deployments in the near future," Jimenez says. Accelerated rollout schedules, embedded devices and steadfast support from vendors will propel LTE subscription growth at a CAGR of 216 percent from 2010 to 2014, when there will be 137 million subscriptions worldwide. "Combined, these catalysts will boost broadband adoption as well as total mobile revenue growth in Latin America," says Jimenez.
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