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Average revenue per line (ARPL) for Latin American data communications services declining
Hot Topic—Data Communications Market Trends in Latin America - a new market research report on 2014-04-04 07:07:03
Average revenue per line (ARPL) for Latin American data communications services has been declining in recent years due to competition, migration from legacy circuits to Internet protocol (IP) technologies, expense control by enterprises, and governments.
Connectivity and badwidth have become commodities in the data communications market. To differentiate themselves, telecommunications companies (telcos) have been bundling services to provide complete solutions while also offering value-added Internet technology (IT) services to increase shares in enterprise accounts.
Value-added services (VAS) include network performance management; acceleration; managed security services (MSS); content delivery networks (CDN); unified communications, and collaboration (UCC); and mobility -- all of which are increasingly important for enterprise customers.
Cloud computing is an important VAS with special appeal to small and medium companies (SMBs) that are adopting dedicated Internet connections.
MSS, CDN, and data center segments also have high CAGRs.
Case studies for British Telecom (BT), Level 3, Orange, and Telefónica are presented in this Hot Topic in order to illustrate market strategies. Profiles are provided in terms of geographic coverage, network infrastructure, and customer base. Finally, the most popular technologies are analyzed, namely IP/multi-protocol label switching (MPLS) and dedicated IP.
In the telecom service industry, the data communications market is one of the most competitive in Latin America. América Móvil and Telefónica compete throughout the region, both in the corporate and SMB segments.
BT, Level 3 and Orange focus on large corporations and multinational businesses. There is a wide geographic scope of these carriers, as they tend to follow multinational clients to wherever they operate.
In each country, there are participants with limited geographic reach and focus on specific clientele. IPLAN in Argentina, GVT in Brazil, Grupo GTD in Chile, and UNE EPM in Colombia are examples for such specialized service companies.

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