As competition increases and digitalisation spreads across the industry, Latin America’s telecom companies face big challenges, from over-the-top (OTT) platforms most of all.
According to Frost & Sullivan, the exponential growth in traffic generated by OTT companies is forcing telecommunication operators to invest in infrastructure to offer users higher speeds and bandwidth.
At the same time, they face a slowdown in growth and in the average revenue per user, stemming from a more mature and competitive market. And, there are growing demands from Latin American regulators to reduce interconnection charges.
“Telcos also have a fantastic opportunity to take advantage of their privileged position in the centre of the digital transformation, not only as connectivity developers or providers, but also as value-added service providers for over 500 million customers in Latin America,” the report noted.
Frost & Sullivan added that these challenges are magnified by the impact of the digital transformation.
“In this context, customer experience ranks as one of the most powerful competitive edges that telcos can use to increase their revenue,” the firm said. “Offering a superior customer experience has become the fundamental differentiating factor between a growing and a declining business.”