Latin American enterprises to boost budgets for mobile apps and IoT/M2M services in 2015

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Latin American enterprises to boost budgets for mobile apps and IoT/M2M services in 2015

Enterprises in Latin America will increase their IT budget for mobile value-added services (MVAS), presenting a big opportunity for MNOs (Mobile Network Operators) and technology vendors.

According to a new report by Pyramid Research, the demand for enterprise MVAS, such as mobile apps and IoT/M2M services, will experience a significant increase in Latin America in 2015. Indeed, a recent survey conducted by Pyramid Research’s sister company Current Analysis shows that more than 40% of Latin American enterprises already use some kind of enterprise MVAS. Moreover, 85% of Latin American enterprises expect their MVAS spend to increase in the next 12 months.
Daniel Ramos, senior analyst at Pyramid Research, says:
“This is a great opportunity for MNOs and technology vendors, as enterprises are making MVAS a top priority to increase the mobility of their workforce.”

MNOs need to be different from other MVAS service providers

Large IT service providers, such as IBM and HP, are currently the largest providers of MVAS in Latin America. Four out of ten enterprises partnered with a large IT service provider to help them manage their MVAS, while 24% opted for network service providers. Nevertheless, mobile operators will continue to engage in collaborative partnerships with IT service providers and technology vendors. Ramos says: “By implementing MVAS platforms from technology vendors, mobile operators will be able to differentiate themselves from other MVAS service providers in the region.”

LTE and smartphone adoption will boost MVAS demand

According to the report, LTE penetration will be a pivotal factor supporting MVAS growth in Latin America. MNOs in the region can take a more active strategy by developing and implementing MVAS over LTE. With this approach, mobile operators can increase their average revenue per user/machine, accelerating the return on their LTE network investments. The adoption of corporate-owned and employee-owned smartphones and tablets will also generate demand for MVAS. “The combination of LTE and smartphone adoption will empower employees to work from virtually anywhere, which will boost the demand for MVAS services further,” Ramos adds.

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