Nearshore Americas

Report: Smartphones and 4G Create Demand for Mobile Services in Latin America

Thanks to the growing popularity of smartphones, businesses across Latin America are increasing their IT budgets for mobile value-added services (MVAS), according to a study by Pyramid Research.

More than 40% of Latin American enterprises already use some kind of enterprise MVAS, such as mobile apps and Internet of Things/M2M (machine to machine) services. Moreover, 85% of Latin American enterprises expect their MVAS spend to increase in the next 12 months.

Large IT service providers, such as IBM and HP, are currently the major providers of MVAS in the region.

Four out of ten enterprises have partnered with large IT service providers to help them manage their MVAS, while 24% have opted for network service providers, according to Pyramid.

Nevertheless, mobile operators will continue to engage in collaborative partnerships with IT service providers and technology vendors.

“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,” said Daniel Ramos, senior analyst at Pyramid Research.

The research firm says network operators can capitalize on the market by developing and implementing MVAS over LTE, the high-speed Internet service network also known as 4G.

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 added.

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Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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