GIL 2013: Latin America - Information & Communication Technologies Track: Mega Trends, Mega...

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ICT Track: Mega Trends, Mega Opportunities

GIL 2013: Latin AmericaThe Global Community of Growth, Innovation and Leadership

31st January, 2013São Paulo, Brazil

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2013

2020

Where do we stand?

Where are we heading?

Latin America LandscapeThe impact of regional challenges and Mega Trends is threatening to make or break us.

Source: Frost & Sullivan analysis.

Latam ICT Mega Trends Latin America Landscape

Smart is the New Green

The ConnectedLatin America

New Business Models Key Takeaways Q&A

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Enterprise CommunicationsTelecommunications

Information Technologies

ICTConvergence

The Age Of ICT Convergence?The ICT industry is increasingly more competitive, hungry for unsustainable CAPEX investments and suffering from challenging new market forces.

Source: Frost & Sullivan analysis. This is an illustration and does not show all market players.





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Source: Frost & Sullivan analysis. This is an illustration and does not show all market players.

The Age of Multi-Industries Convergence: Partnering to Conquer 75% of the disruptive innovations are generated in the white space between industries.

Information and Communication

Technologies Players

Healthcare Players

Energy & InfrastructurePlayers

Automation & Building Control Players

Convergence





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Why Mega Trends matter?Mega Trends bring incredible opportunities for companies that identify and take them into consideration throughout their strategic planning cycles.

What is a Mega Trend? Mega Trends are transformative, global forces that define the future world with their far-reaching impact on businesses,

societies, economies, cultures, and personal lives.






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Business Process Outsourcing

Health, Wellness, and Well Being

Latin American Mega Trends

Urbanization – City as a Customer

Social Trends

Smart is the new green

New Business Models

Economic Trends

Connected Latin America

Future Infrastructure Development

Future of Renewable Power

Social Programs

Multilatinas

Mega Trends that will reshape business in Latin AmericaRegional challenges and uprising Mega Trends increase business risks. Understanding these forces will mitigate risks and maximize opportunities.






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Mega Trend #1: Smart is the New Green

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Mega Trend #1: Smart is the New Green

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Smart Cities: Development of Mega Cities is challenging infrastructure planning Rapid demographic change in Mega Cities will increase spending in Public Safety, Energy, and Traffic Planning to $54 billion in the region by 2020, turning the City into a customer.

In 2025, 69 Cities in Latin America will

have More Than One Million Inhabitants Encompassing 244

Million People.> 15 Million

> 1 Million

Metropolitan population

Latin America Demographics, 2025

Mexico CityMonterrey

BogotaMedellin

Santiago

Belo HorizonteCuritibaBrasíliaRio de JaneiroSão PauloPorto Alegre






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Smart Cities: Exciting ICT Opportunities in the Sustainable Cities of LatAmGovernments throughout the region have been partnering with ICT companies to provide strategic and intelligent both internal and external solutions.

Sustainable Cities Evolution, Latin America, 2020Sustainable Cities Evolution, Latin America, 2020

Information served over the Internet

•Citizens benefit from public information from traffic patterns to security breeches via Twitter and SMS.

Information served over the Internet

•Citizens benefit from public information from traffic patterns to security breeches via Twitter and SMS.

Monitoring and control become interactive

•Active environmentally mobile solutions.•Smart Government empower individuals and increase citizens interaction with different government spheres.•Intensive use of analytics to improve citzens’ quality of life.

Monitoring and control become interactive

•Active environmentally mobile solutions.•Smart Government empower individuals and increase citizens interaction with different government spheres.•Intensive use of analytics to improve citzens’ quality of life.

Basic communication and infrastructure suites

•Early government initiatives.•Preliminary discussions between government and industry.

Basic communication and infrastructure suites

•Early government initiatives.•Preliminary discussions between government and industry.






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CAGR (2012-2016)+25%

Mill

ions

(USD

)

Volume:10 connected devices per house by 20205 connected devices per user by 20205 billion internet users by 2020

Variety:Smartphones and tablets increasing data accessM2M, RFID, smart devices4G, video call, streaming, Wi-Fi

Velocity:Real time analysisPro-active strategyCapitalize on new opportunities

Big Data Market, Brazil, 2012-2016

Smart Cities: Big DataVolume, variety and velocity of data will change the way businesses proactively monetize new market opportunities.

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Smart Clouds: The next big thing in terms of Technology infrastructureSmart Clouds optimize costs and resource usage in an environment where computers are mobile, content development is collaborative and application access must be immediate.





Dedicated Hosting

Disaster Recovery

Storage

CAGR: 9.9%CAGR: 9.9%

MaturityIntroduction Growth Decline

Time


Colocation


CAGR: 10.7%CAGR: 10.7%

IaaS

SaaS

PaaS

Cloud Services brings to companies a one – Stop Shop Enterprise End-To-End Solution that enables faster time-to-market, agile deployments and most importantly competitive edge.

Cloud Services brings to companies a one – Stop Shop Enterprise End-To-End Solution that enables faster time-to-market, agile deployments and most importantly competitive edge.

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Mili

ons

(USD

)

174MN

302 MN+74%

Smart Clouds: Cloud Opportunities in BrazilThe Brazilian Cloud Computing market is expected to grow to USD 1 billion by 2017. Largest opportunities in both the IaaS and SaaS layers.

Cloud Computing Market Revenues, Brazil, 2011-2017






CAGR (2011-2017)+59%

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Mega Trend #2: The Connected Latin America

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Source: Local regulatory agencies Brazil, Colombia, Mexico, Argentina, Venezuela and Chile. Frost & Sullivan Analysis.

Expanding Access to Broadband: Submarine Cables and BackbonesThe expansion of the submarine cable infrastructure will reduce latency for Internet and applications, increase redundancy and lower prices for end-users, also influenced by national broadband plans.





Planned Submarine Cables and National Broadband Plans, Latin America, 2011-2015

Planned Submarine Cables:•Brazil-Angola-Africa •Brazil-U.S. (2 Cables)•Brazil-Southern Cone•Brazil-Cabo Verde-Portugal•Brazil-EuropeOnly 1 out of 31 active submarine cables in the

region doesn’t route to North America.

Redundant fiber optic rings within Latin America will increase security and dependability of services.

National Broadband Plan (PNBL)

Argentina Connected

Chilean Digital Strategy

Agenda Digital.mx

Vive Digital

National Telecommunications Plan

Planned Submarine Cables:•Colombia-U.S. (2 Cables)

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Expanding Access to Broadband: SatellitesMultiple new satellite deployed will decrease average prices for clients and provide higher SLAs for ever expanding ICT offerings.

Túpac Katari 12015

Anik G12013

ARSAT-1 2013

DirecTV LA 1 &2 2014/2015

Satmex 72014

IS-272013

Star One C4 &C52014

Amazonas 32013

Amazonas 4A & 4B

2014

BRSAT-1 2014

Eutelsat 3B 2014

SES 62014

At least 18 new satellites will be launched between 2012 and 2015

for Latin American operations.






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Mobile Data: 3G and 4G ExpansionMobile penetration in Latin America has already reached 125%, and is likely to be over 163% by 2017 as users migrate from 2G to data-heavy 3G and 4G services and adopt multiple smart devices.

Percent Forecast of Lines by Technology, Latin America, 2017

Smartphone Shipments (Million Units), Latin America, 2012-2017

415.6 million

lines

Smartphone sales in Latin America will more than double by 2017.

3G coverage is expected to reach 100% of Brazilian cities in

2019.






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Mobile Data: New ApplicationsWith this rapid 3G and 4G expansion, data and VAS will represent 46% of carriers’ revenues in Latin America by 2017, while voice services gradually lose importance as a source of revenue.

Voice

VoiceSMSData

VoiceSMSDataDownload FilesStreaming Media

VoiceSMSDataDownload FilesInternetE-mails

VoiceSMSDataDownload FilesInternetE-mailsStreaming MediaVideo Conferencing

VoiceSMSDataDownload FilesInternetE-mailsStreaming MediaVideo Conferencing3D gamingMobile TVLive ContentInternet TelevisionMobility

Roaming

Capacity and Quality

More Capacity, High Speed Data

Global Roaming, Better Media

Higher Speed, Live Content

1G 2G 2G + EDGE 2G + GPRS 3G + HSPA+ 4G + LTE-Advanced

2000-20092000-20091990s1990s 20102010

Mobile Technology Roadmap, Latin America, 1990–2012 and beyond

Launch DateLaunch Date 2012 2012






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The rise of Unified CommunicationsThe rise of Unified Communications

Unified Communication: Communicate Anywhere, Anytime, on Any DeviceThe constant growth of broadband penetration in Latin America is opening a new horizon of corporate communications without barriers.

Cloud Computing and 4G network are enablers of the virtual office, people will be able to work anywhere and anytime.

Interactive Intranets are being integrated and infused with real-time communications capabilities, taking remote team collaboration to the next level.

HD online video conferencing, web collaboration applications and VoIP are replacing the regular phone call per highly graphic and dynamic ways of communication.






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Mega Trend #3: New Busines Models

2121

Value for Many: Affordable ProductsIn 2025, it is expected that 69% of Latin Americans will be considered middle class. This Middle Bulge will represent a strong income group with more than 456 million individuals.

Mobile Services•Daily subscriptions•Fixed tariffs per call•Promotional on-net services•Prepaid plans•Control plans

Fixed Broadband Services•Prepaid plans (i.e. Sercomtel, Algar)•National Broadband Plans•Fixed-Wireless (i.e. Radio, LTE-TDD)

Pay TV Services•Prepaid plans•Basic postpaid plans (~$20 per month), with •DVR on pen drives•Service Bundles

Fixed Telephony Services•Fixed-Wireless (using mobile infrastructure)•Fixed VoIP with monthly fee exemption of low cost plans•Economy Lines (i.e. AICE)•Prepaid plans•Control plans






Low cost products targeted at this emerging middle class in Latin America will help companies achieve the necessary scale to obtain return on investment (ROI).

Low cost products targeted at this emerging middle class in Latin America will help companies achieve the necessary scale to obtain return on investment (ROI).

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The Rise of Mobile Solutions: Mobile Health Increasing demand for weekly care along with insufficient healthcare infrastructure in the region will create burgeoning opportunities for mobile health enablers, such as Telecom and IT providers.

24%Of the population will suffer from chronic diseases, such as diabetes, asthma and hypertension by 2020.

Latin America Landscape:

10%Of the population will be 65 years old and above and will have a purchasing power of approximately USD 711 billion per year by 2020.






Increasing need for weekly care will boost

the demand for remote monitoring.

Preventive care becomes imperative

and greate opportunities will emerge for apps

focused on prevention.

Healthcare institutions forced

to increase efficiency, driving the demand for

tablets conected to EMR.

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Key Takeaways





Verticalize or Clusterize to

Survive

• ICT companies should organize strategic business units (solutions portfolio, pre and post sales capabilities, marketing and communication efforts, go-to-market strategies) solely dedicated to identify and surpass the needs of different industry needs.

• Integrate new disruptive and emerging technologies such as Cloud Sevrices, Big Data and Mobility into all major business verticals.

The Greater Ecosystem -

Partner to Conquer

Strategic Recommendations

• Multi-industry convergence is a strong emerging trend in Latin America. ICT stakeholders should map broader ecosystems and evaluate unprecedented alliances and acquisitions .

• In an increasingly competitive scenario, ICT players should assess co-opetition relationships to effectively monetize emerging opportunities.

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Q&A






Fernando BelfortTeam Leader – Technology, Latin AmericaInformation & Communication Technologies

[email protected]

Fernando BelfortTeam Leader – Technology, Latin AmericaInformation & Communication Technologies

[email protected]

GIL 2013: Latin America - Information & Communication Technologies Track: Mega Trends, Mega...

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