Market structure and penetration in the Latin American mobile sector

The objective in this paper is twofold. On the one hand, it seeks to analyse the process of consolidation that the region experiences today in the mobile market and on the other, identify the impact this market concentration has had on mobile penetration. The ultimate objective behind this analysis is to understand how the trend in market structure may impact the use of mobiles by low income sectors of the population in Latin America.

 

The findings in this paper are mixed. They do not identify a clear association between market concentration and mobile penetration. It suggests firms in the mobile market are competing for a regional position and not colluding; for example, the ARPUS in the mobile industry are decreasing. In accordance to results in other studies it finds that the most significant variables that have had an impact on mobile penetration are pricing strategies.