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Hot Topic— Mobile Enterprise Services in
Latin America
Value-Added Services and Mobile Applications Lead to Market
Growth
9838-65
November 2013
Executive Summary
Embratel
2 9838-65
Renato Pasquini Telecom Industry Manager
ICT Latin America
(+5511) 3065-8433
Research Manager Research Director
Jose Roberto Mavignier Business Unit Leader
ICT Latin America
(+5511) 3065-8463
Research Team
Carina Gonçalves Research Analyst
ICT Latin America
(+5511) 3065-8427
Lead Analyst
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Contents
Section Slide Numbers
Executive Summary 4
Introduction 7
Key Definitions 9
Market Assessment 11
Brazil Breakdown 26
Appendix 28
The Frost & Sullivan Story 31
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Executive Summary
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Key Study Findings
• Mobile enterprise value-added services (VAS) are in the radar of information and communication
technologies (ICT) companies, as one of the most promising revenue streams in the next years.
• VAS such as location-based services, Voice VPN, mobile office, mobile cloud computing, application-to-
peer (A2P), short message service (SMS) and others are being improved and expanded in order to
increase average revenue per line (ARPL) and improve customer experience.
• Telcos want to offer integrated solutions in order to optimize the adoption of mobile enterprise services
by small, medium and large businesses. These solutions also drive an increase of data services and
voice services of carriers’ infrastructure, thus providing a base to preserve the traditional telecom
business.
• The ecosystem in Latin America is being developed and the availability of different mobile applications
is expected to increase heavily in the next years. Companies are likely to adopt applications under
mobile device management (MDM) solutions, in order to guarantee security, and deal with the
phenomenon of consumerization, as personal smart device adoption in enterprises keeps growing.
Source: Frost & Sullivan
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Key Study Findings
• Frost & Sullivan estimates that the mobile enterprise services market revenue for Brazil, Colombia and Mexico, will grow
from U.S. $ 11.84 billion in 2012 to U.S. $ 17.84 billion in 2018.
• However, many solutions are still tailor-made for special projects. For further adoption, it is important that ―shelf products‖
are provided by Telcos with easy contract options by clients, as a few Telcos have been doing with cloud services
applications stores.
• We expect that with the evolution of 4G networks and Wi-Fi hotspots, the experience with cloud services will enhance
and this will allow the development of more advanced services, including video.
• For the client, the return on investment needs to be calculated in large projects. However, the ―as a service‖ model
provides an easy access for small and medium enterprises to adopt applications and services. The evolution of this
model is resulting in an increase of productivity and efficiency in this segment, as users make real-time decisions; even if
they are away from their physical locations, they still have access to systems that allow better management of
operations, such as CRM, Accounting, Supply Chain Management, etc.
• However, there is still lack of awareness of the benefits that enterprise mobile solutions can deliver. Therefore the
challenge is to educate customers and make the service more tangible. Other key industry barriers that need to be
addressed are consumer trust on security, and low penetration of data-capable devices.
Source: Frost & Sullivan
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Introduction
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Research Objectives, Scope, and Methodology
Objectives:
This study focuses on analyzing what mobile carriers are doing regarding mobile enterprise
services. The key focus areas of the research are as follows:
• Main trends for mobile enterprise
• Market assessment and forecast
• Types of services by carriers
Scope
• Geographic coverage: Brazil, Colombia and Mexico
• Forecast period: 2013–2018
• Base year: 2012
• Monetary units: US dollars
Research methodology
Primary research was conducted, and secondary research included Frost & sullivan
online database, market participants’ financial reports, and regulators’ Web sites.
Source: Frost & Sullivan
Mexico
Colombia
Brazil
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Key Definitions
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Source: Frost & Sullivan
Key Definitions
Mobile Enterprise Services: Multiple components—including plans, devices, operating systems, applications, access options,
and corporate policies. This is the comprehensive set of tools and processes an enterprise uses to manage its mobility
environment.
Mobile Value-added Services (VAS): VAS are enhanced services, which add value to the basic telecommunications services and
bearer services for which separate licenses are issued.
Location-based Services (LBSs): LBS offer organizations the ability to identify and track locations, goods, and services in the
form of directions, or maps and GPS coordination. It also provides location-based time cards, which give the duration of the stay of
an employee at a particular location. These services are used in fleet management and vehicle location services, as well as in
environments that have mobile equipment.
Supply Chain Management (SCM): Supply chain management helps with efficient logistics tracking and planning. The
advantages include: mobile dispatch, mobile order tracking, package tracking, instant messaging, on-the-spot mobile printers,
exception alerts, virtual real-time vehicle tracking, and the integration of various data collection devices, for example, barcode, RFID
(radio frequency identification), electronic signatures, and so on.
Field Force Automation (FFA): Timely communication and coordination, both inbound and outbound, to the field are critical for
FFA. It enables workflow processes, service scheduling, status reporting, remote data entry, and a host of other benefits.
Mobile sales force automation (SFA): involves the extension of corporate customer relationship management (CRM)/SFA
systems to mobile devices. This often allows itinerant, field sales personnel to access product information, pricing, inventory status,
and customer information on mobile devices enabling users to perform contact management, calendar entries, opportunity
analyses, and order management functions, while being away from their office environment.
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Market Assessment
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Mobile Enterprise Services—Market Assessment
Source: Frost & Sullivan
Key Takeaway: Mobile enterprise value-added services (VAS) are in the radar of information and
communication technologies (ICT) companies, as one of the most promising revenue streams in the
next years.
VAS such as location-based services, Voice VPN, mobile office,
mobile cloud computing, application-to-peer (A2P), short message
service (SMS) and others are being improved and expanded in
order to increase average revenue per line (ARPL) and improve
customer experience.
Telcos want to offer integrated solutions in order to optimize the
adoption of mobile enterprise services by small, medium and large
businesses. These solutions also drive an increase of data services
and voice services of carriers’ infrastructure, thus providing a base
to preserve the traditional telecom business.
13 9838-65
Key Takeaway: The evolution of smarter devices with a high level of computing capability is now
widespread. These devices can replace laptops on the field and travelling. Enterprises have slowly
started to realize the value of integrating these devices into their communications.
Mobile Enterprise Services—Market Assessment
Key Market Drivers
Smart device uptake and adoption of personal devices in enterprises is
expected.
Increased productivity and collaboration with field and remote
employees are essential.
Managed mobility services are likely to spur the uptake of mobility solutions.
Alternative revenue stream for network operators is expected to boost growth.
1
2
3
4
0
5
10
15
20
25
30
2012 2013 2014
Tablets 2,1 4,2 6,7
Notebooks 13,1 16,8 20,4
Smartphones 15,5 21,4 27,8
Un
its
(M
illi
on
)
Devices Forecast, Brazil, 2012–2014
Tablets CAGR, 2012–2014 = 78.6%
Notebooks CAGR, 2012–2014 = 24.8%
Smartphones CAGR, 2012–2014 = 33.9%
Tablets in Brazil are expected to grow almost 80% by 2014.
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan
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Source: Frost & Sullivan
Key Takeaway: Some prospects still not recognize the advantages of mobile enterprise services.
Therefore the challenge is to make the service tangible, adding value to the customer. Education also
is essential for the usage of mobile enterprise services.
Mobile Enterprise Services—Market Assessment
Key Market Restraints
End-user unawareness of the benefits of mobile solutions
Quality of service of mobile broadband networks
Affordability of mobile solutions
End-user concerns on the security of solutions
Low penetration of smart devices
This mindset is more prevalent among conservative vertical segments—for example, the financial services sector—where security and other compliance issues are critical to
business operations.
Access is not the only security concern; corporations also have begun to realize that any
data that is downloaded or sent as an email attachment can be vulnerable if the device is lost
or stolen.
1
2
3
4
5
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Unimportant Critical
Very Uncertain
Very Certain
High
Impact Size
Medium
Low
Impact Mapping of Drivers and Restraints
Driver Rank
1
2
3
4
Restraint Rank
1
2
3
4
3
4
1
4 1
2 5 3
2
3
4
5
Source: Frost & Sullivan
Legend:
Blue: 1) Smart device uptake 2) Increased productivity 3) Managed mobility services 4) Alternative revenue stream
Red: 1) End-user unawareness 2) Quality of service 3) Affordability 4) Concerns on the security 5) Low penetration of smart devices
16 9838-65
Mobile Enterprise Services in Brazil, Colombia and
Mexico
Key Takeaway: The mobile enterprise services market penetration has encouragingly and steadily
increased, but there is still potential for growth considering the economic outlook and enterprise
market demand.
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
18,00
20,00
2012 2013 2014 2015 2016 2017 2018
Revenue ($ B) 11,84 12,96 14,00 15,01 15,95 16,90 17,84
Lines (M) 35,1 39,2 43,7 48,7 54,1 59,9 66,4
Lin
es
(Mill
ion
)
Rev
en
ue
($
Bill
ion
)
Year
Mobile Enterprise Services Market: Lines and Revenue Forecast, Brazil+Colombia+Mexico, 2012–2018
Revenue CAGR = 7.1 Lines CAGR = 11.2%
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
17 9838-65
Source: Frost & Sullivan
Key Takeaway: The opportunities are immense in the enterprise mobility market segment. Service
providers and vendors that can build an end-to-end ecosystem to address the challenges will be well
placed to thrive in this market.
Mobile Enterprise Services—Market Assessment
• Mobile Device Management (MDM)
• Mobile Application Management (MAM)
• Network Security
• Access Security
• Device Security
• Fleet Management
• Telecom Expense Management (TEM)
• Service Management
• Maintenance Management
Key Applications
Enterprise Mobility is starting to take center stage in many
organizations and is clearly on the minds of Information
Technology (TI) managers and Chiefs Information
Officer (CIOs). Enterprise Mobility is far greater than just
management of mobile devices. Many other aspects also
need to be considered like applications management and the
security issues surrounding mobility. Consequently
organizations must balance the expectations of employees in
pursuing an enterprise mobility strategy whilst at the same
time putting in place adequate governance and security
policies.
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Lifecycle Stages of Key Services/Applications
Convergent
services Mobile
Broadband
Cloud
services
Mobile VoIP M-Health
M2M
Source: Frost & Sullivan analysis
Currently accounts for a small portion
of operator’s revenues, but M2M
solutions are considered to offer very
high growth potential.
Maturity Development Growth Decline
Time
Ma
rket
Va
lue
Mobile broadband is
expected to be one of
the fastest developing
services.
Unified
Communication
Video
conferencing
Business E-mail and
Mobile Office Content
Voice
Reduced labor expense, increase in customer satisfaction and
reduced paperwork are the top ROI impact of these
applications.
Integration of smart devices into the
workplace will drive adoption of mobile
applications and Software as a Service.
SFA LBS
Mobile Device
Management
System
Apps
(CRM,
SCM, ERP)
Mobile Enterprise Services Market: Life Cycle Stages of Key Services/Applications (Latin America), 2013
SMS
SCM
FFA Point-of-
Sale (POS)
application
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Mobile Enterprise Services—Market Assessment
Source: Frost & Sullivan
Key Takeaway: Applications are likely to be flexible in terms of OS platforms and infrastructures.
Currently the majority of the
mobile enterprise solutions have
custom design based on the
customer business requirement.
There a few shelf products
available and these services
also need to be adapted for
implementation depending on
the client infrastructure.
Most operators use
development partners. In this
case, the customer should
contact the own partner if it has
software problems. If happens a
hardware or information
transmission problem, the
partner will contact the
manufacturer or the operator
itself. The advantage of been a
Telco customer is that mobility is
its core business and it can
develop customized solutions
with all the knowledge required
for this.
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Mobile Enterprise Services—Market Assessment
Source: Frost & Sullivan
Key Takeaway: Growth in virtualization and cloud computing drives ease of implementing mobile
enterprise solutions.
Cloud solutions is a trend in this segment because they
offer the possibility to contract application in the ―as a
service model‖. But these solutions are vulnerable to the
bandwidth and availability of mobile networks. Currently
it´s more popular the hybrid model in which an application
on the device sends the data in the end of a request.
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Source: Carriers´s websites. Frost & Sullivan
Key Takeaway: For the client, the payback is fast and the ROI is high because of the cost
reduction applications could bring. Mobile enterprise services also bring optimization of the
information flow and productivity.
Mobile Enterprise Services—Market Assessment
CUSTOMER
VALUE
• Increased productivity.
• Enhanced communication in the organization.
• Reduced paperwork.
• Improved reliability and quality of information.
• Increased speed in information updates.
• Better relationships and client service.
• Possibility of real-time decision making.
• Reduced errors, with standardization and registration, having no problems with re-keying and other communication errors.
• Reduced need for voice communication because the content is carried via data transmission.
• Monitoring of risky operations (e.g. transport of money).
• Prevention of loss of revenue due to lack of connectivity.
• Integration with Enterprise Resource Planning (ERP) solutions, Customer Relationship Management (CRM) and others.
• Greater control of the operation created by the visibility with periodic reports of the service running.
• Economy, because is not necessary to invest in servers, hardware or integration. The manager just need to enable the devices and manage everything online.
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Mobile Enterprise Services—Market Assessment
Source: Frost & Sullivan
Key Takeaway: Mobile enterprise solutions provide the best working tools for service companies that
require security, availability, ease of implementation, cost and time savings.
TARGET MARKET
Healthcare
Industrial
Safety and Emergency
Consumer and Home
Retail and Finance
Transportation
• Transport companies with high-value loads.
• Point of sale and logistics companies.
• Corporations that require security for its executives.
• Private security firms.
• Trade marketing sector.
• Promotional marketing agencies.
• Event companies
• Corporate management focused on products that rely on excessive control.
• Companies with sales force.
• Corporate staff with strong mobility.
• Management companies with products
and services of high consumption.
• Companies that practice remote monitoring and assistance.
• Supermarkets, drugstores, department stores.
• Consumables companies (food, clothing, etc.).
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Brazil Breakdown
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Mobile Enterprise Services in Brazil
Key Takeaway: Lines are expected to grow at a much faster rate than ARPLs. This is mainly due to the
rapid expansion of M2M services, which have a very low ARPL, usually lower than $5.00.
0,0
10,0
20,0
30,0
40,0
50,0
60,0
0,00
2,00
4,00
6,00
8,00
10,00
12,00
2012 2013 2014 2015 2016 2017 2018
Revenue ($ B) 6,35 6,98 7,56 8,13 8,66 9,22 9,77
Lines (M) 23,4 26,3 29,7 33,6 37,8 42,5 47,7
Lin
es
(Mill
ion
)
Rev
en
ue
($
Bill
ion
)
Year
Mobile Enterprise Services Market: Lines and Revenue Forecast, Brazil, 2012–2018
Revenue CAGR = 7.4%, Lines CAGR = 12.6%
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
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26 9838-65
Additional Sources of Information on ICT
• Communication Services Blog
• Mobile and Wireless Communications Blog
• Previous ICT Analyst Briefings
• Slideshare: 2013 Predictions for Telecom Services in Latin America
• Events
Recent studies in Latin America:
o Argentina Total Telecommunications Services Market 2012
o Colombia’s Total Telecommunications Services Market
o Latin American Satellite Services Markets 2012
o Latin American Broadband Services Markets
o Latin American Data Communications Services Market, 2012
o Latin American New Business Models for Telecom Services, 2012
o Latin American Pay TV Services Markets, 2011
27 9838-65
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• Access the Movers & Shakers interviews
• Subscribe to industry newsletters
• Contact the closest Frost & Sullivan office in Latin America
• Explore the Growth Excellence Matrix 2.0
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