Telefonica Sa · BME:TEF
Telefonica Sa — Mobile World Congress 2010
24 slides from Telefonica Sa's conference presentation, February 2010
Slide 1: An overview of the Latin American Telecom Market
An overview of the Latin American Telecom Market Telefónica Latinoamérica José María Álvarez-Pallete CEO & Chairman Telefónica Latinoamérica 1
Slide 2: Agenda
1. Latin America: a growth opportunity 2. Trends in the Telecom sector: the race for transformation 3. Final remarks 2
Slide 3: Past crises have curtailed Latin America's growth prospects
Past global economic and financial crises have curtailed Latin America’s growth prospects In 1983 most of LatinReal GDP per capita (1980 = 1) America fell into a perverse dynamic of poor growth Real GDP per Capita (1980=1) Global recession in the beginning of 1.9 the 80’s had a strong long lasting e
Slide 4: Since 2002, Latin America has shown higher growth than most OECD countries
But since 2002, Latin America has shown higher growth rates than most OCDE countries Latin America escaped Real the GDP trap,per and went back to a sustainable high-growth capita (1980 = 1) path Real GDP per Capita (1980=1) 1.9 1.7 +27%1 1.5 In the period from 2002 until 2009, Latin America’s 1.3 po
Slide 5: Latin America is recovering faster than advanced economies
Likewise, Latin America is recovering faster than advanced economies from the recent world financial crisis >70% Latam GDP “Investment Grade1” GDP Growth (% , Constant Prices)(2) Brazilian jobs figures point to swift recovery September, 17, 2009 Brazil last month recorded the biggest monthly jump in
Slide 6: The region is also building a solid social structure
The region is also building a solid social structure Since 2002, more than 50 million people in Latin America have lifted themselves out of poverty Economic • >5% GDP growth in the last four years Population growth gave Millions 729 way to human • Unemployment reduced from 11% to development 7.5% si
Slide 7: Access to information and communication technologies has improved dramatically
Access to information and communication technologies has improved dramatically… Mobile Penetration rates Fixed Broadband Accesses / Pop Accesses / Household 100% 25% Latam Average Latam average 7
Slide 8: Latin America: one of the most dynamic internet societies
… transforming Latin America in one of the most dynamic societies in the internet 179 million internet users in Latam(*) 30,5% of population 73% use messenger More than half of all 55% upload videos and internet users access photos to the web the web every day 82% use webmail 60% belong to a social
Slide 9: A solid base to build the future of the telecom industry
Latin America offers thus a solid base to build the future of the telecom industry The region’s growth will be driven by The fixed line business will evolve mobile towards BB. 9
Slide 10: Mobile broadband will grow rapidly across the region
MBB in particular will grow rapidly throughout the region, especially in Brazil, Chile and Argentina Mobile Broadband penetration per head of the population 2009 (Caribbean and Latin America 2009-2014 (1) What is the 10% 2014 potential of 8% mobile 6% broadband in 4% Latinamerica? 2% 0% Brazil Chile
Slide 11: Telefónica is ready to take the challenge
… and Telefonica is ready to take the challenge Telefónica´s distinctive assets in Latin America place us in a privileged position to take advantage of the opportunities that this new scenario will offer Fixed market ranking Mobile market ranking 2 9 268 Million accesses worldwide, 164 of which are
Slide 12: Agenda
1. Latin America: a growth opportunity 2. Trends in the Telecom sector: the race for transformation 3. Final remarks 12
Slide 13: The pace of transformation of the Telecom sector is faster every day
The pace of transformation of the Telecom sector is faster every day… Years to reach the first 150 million customers 89 yrs 38 yrs 17 yrs 14 yrs 7 yrs 5 yrs The growing speed of massif adoption of new technologies has determined a new world order Fuente: Forbes 13
Slide 14: Now we talk seconds instead of years
… so fast, we now are talking “seconds” instead of “years” 1 1 1 day minute second 600,000 new 10 hours of 50 Million blogs users every day new videos updated every uploaded second!!! Telefónica Latinoamérica 14
Slide 15: Information technologies have transformed how we live and communicate
Information technologies have transformed the way we live, communicate and access services… New devices Social Networks Internet 3.0 New services EBook Cloud computing Telefónica Latinoamérica 15
Slide 16: The fundamentals of our business have changed dramatically
… and thus, the fundamentals of our business have changed dramatically 1. 2. Zetabytes/Year Digital Content Broadband +2 Zetabytes 9 High speed 9 x4 Increase of BB capacity growth of 9 Massif deployment of MBB data traffic 9 New profile of usage: the importance of upload capacity vs download 3. New
Slide 17: The mobile industry will be particularly dynamic
The mobile industry will be particularly dynamic: internet is shifting the ground rules of the business Mobile data revenues USD billions Players of the mobile data business 40% CAGR 2003 Vs2007 Today Telecom operators …but the ground rules are control most of the mobile changing and we have an data
Slide 18: The challenge for a Telecom operator is to take advantage of the new scenario
The challenge for a Telecom operator is to take advantage of this new scenario… Open innovation is the key to success Regional Nodes Application developers, • Telefónica has pioneering start-ups and launched a small software unique and companies will be able to offer their ground- integrated breakin
Slide 19: Growth opportunities: M2M markets
…because there will be plenty of growth opportunities in our sector… M2M markets Telecom operators roles Automation & monitoring Providing the connection to Security remote devices Automotive Managing data transmission through GSM, GPRS, EDGE and Transportation & logistics RFID Payments & POs
Slide 20: Smart grid devices broaden the opportunities
…and smart grid devices will further broaden this landscape of opportunities… Smart grid devices rationalize the use of energy adjusting it to each customer´s Automation & monitoring consumption patterns and making supply more reliable. They can help reduce energy consumption up to 15% 1 Consumer Ap
Slide 21: Smart grid devices broaden the opportunities
…and smart grid devices will further broaden this landscape of opportunities… Smart grid devices rationalize the use of energy adjusting it to each customer´s Automation & monitoring consumption patterns and making supply more reliable. They can reduce energy Telecom operators consumption up to 15%
Slide 22: Agenda
1. Latin America: a growth opportunity 2. Trends in the Telecom sector: the race for transformation 3. Final remarks 22
Slide 23: In summary
In summary: Information and communication technologies have dramatically changed the way we live in a very short period of time. Telecom operators need to quickly transform their business strategies accordingly to meet growing consumer needs and take full advantage of the opportunities that this
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