market opportunity news flash americas
DESCRIPTION
TRANSCRIPT
Mobile Market Opportunities
in Americas
Kimmo Aura, Regional
Sales Manager Americas
Agenda
• What’s hot, what’s not in Silicon Valley
• Internet, Mobile and Cloud in Brazil
• Mobile sector in Mexico
• Cloud in Colombia
• Social networking in Chile
• ICT in Argentina
• Summary
16/11/2012 © Finpro 2
Silicon Valley, Mobile Dominance
Source: Apple Source: Android
16/11/2012 © Finpro 3
Mobile OS Market Share – North America
Source: StatCounter 16/11/2012 © Finpro 4
Who let the dogs out?
• The mobile ecosystem is in the turmoil – there is a huge
fragmentation both in the platforms and in the
distribution (of apps and content).
• First came iPhone. Then app stores (started with
Apple/iTunes) changed the mobile landscape - it’s
about the service, applications, user experience and UI.
• Google driving Android with multiple phone vendors has
changed the mobile ecosystem even more.
• Operators are back in business.
• Add ‘Social’ to the mix.
• And then add ‘Cloud’ to the mix.
• And then add ‘Tablet’ to the mix.
16/11/2012 © Finpro 5
What’s driving us?
• Re-invention of Media: ‘Participatory & Social Media” – e.g. Gaming
• GAMIFICATION
• Media as interactive experience vs. packaged, static ‘content’ (GuitarHero)
• Formalization of key human behaviors & addictions
• Alternative Biz models: freemium, free-to-play + microtransactions, virtual currencies
• User-interface breakthroughs Tim Chang, NVP 16/11/2012 © Finpro 6
Overall situation in US Cloud Industry
• Mature technical infrastructure available
• Several dominant players (Amazon, Force.com, Google)
• Cloud computing is a normal practice to implement www-solutions, especially in web2.0
• Lot of cloud-related start-ups
• Emphasis on supporting and using the cloud, not on cloud computing infrastructure
• Typical startup has $1M-$8M seed or A-round funding
• Many ”traditional” companies will move to cloud
• SAP, IBM, NSN, etc.
• But not Oracle (officially)
16/11/2012 © Finpro 7
Hot topics and thoughts …
• Mobile everything
• Operators
• Mobile Business Processes
• Consumerazing IT
• Social - New Social
• Tablets
• Gaming - mobile
• Gaming as mainstream media
• Gamification
• Edutainment
• Virtual goods/microtransactions
• Digital livingroom, next screen, Smart TV
• Media
• Big Data, Data Analysis 2.0 (dynamic, real time)
• Social / mobile healthcare
• Addressbook ownership
• Search / discovery
• Cloud Computing
Source: Mediaspin.com
By various ‘thinkers’
16/11/2012 © Finpro 8
VC $$$ Silicon Valley in 2Q 2012
Venture funding in early stage deals -- which has lagged over the past
year as VCs put more money into mature startups closer to going public --
reached the highest quarterly total since early 2001.
Venture firms pumped $2.1 billion into 410 young companies in the latest
quarter, double-digit increases from the prior three months.
Software, Digital Media and Internet companies continued to be popular,
while life sciences and cleantech declined.
Around 375 VC companies in SV
16/11/2012 © Finpro 9
Silicon Valley Journey
16/11/2012
Over 80 experienced entrepreneurs, executives
and experts were interviewed on the subjects
relating to this book.
The shared knowledge will hopefully help new
startups and entrepreneurs who are planning to
take their ideas and companies to Silicon Valley –
as well as those who have already started their
journey. The valuable insights and experiences will
contribute and assist in the navigation through the
various challenges. Being better prepared for your
journey can save you money and time, and reduce
frustration.
The book is organized into chapters by themes. It
follows that the stories are not chronological; rather,
a story of a company is told in snippets in several
chapters. The intent was that the book can be read
as a handbook, which means that the reader is
welcome to start at any chapter that she or he finds
most relevant.
Free to download!
or search for ’silicon valley journey’ www.tekes.fi
© Finpro 10
Internet Users in Latin America (6/2011)
16/11/2012 © Finpro
11
Inte
rnet u
sers
per c
ou
ntry
Facts about Brazil
16/11/2012
• Brazil is a part of Mercosur (= Argentina, Brazil, Paraguay and Uruguay) and
has negotiations with EU about free trade agreements.
• Taxation with Finland: Tax sparing ends and internal rates are applied to
dividend, interest and royalty.
• Brazil is not a member of OECD.
Source: Brazil Global Net, Inflation.eu, IBGE, OECD, Finnish Minstry of Finance, European Commission
© Finpro 12
Use of Internet in Brazil
• In September 2012 there were
83 million internet users. It
makes Brazil the 5th most
connected country.
• Broadband users (> 2Mbps) in
July 2012 were 16,8 million,
growth of 91% compared to the
previous year.
• Brazilians spend 69 hours per
month in internet (July 2011).
• 70 % of children aged between 9
and 16 years have accounts in
social networks (July 2012).
• The most popular social
network sites in Brazil in 2012
are: 1. Facebook, 2. Twitter, 3.
Orkut, 4. LinkedIn, 5. Tumblr
• Shopping online is increasing fast.
Currently 29 % of internet users
buy online - in 2011 the amount
spent was BRL 18,7 bn (~USD 9,3
bn).
• Most of public sector purchasing
through governmental internet
portal.
16/11/2012 © Finpro 13
Mobile sector Brazil
• In September 2012 Brazil had 259 million mobile phone connections (penetration of 132%).
• Prepaid connections’ share was 81,2%.
• Of the 83 million internet connections, 63,6 million are mobile internet connections and 19,4 million fixed.
• 4G network has to be operational in 2014 World Cup host cities by the end of 2013.
• According to the ITU’s
Measuring the Information
Society 2012 study, Brazil was
world’s second most dynamic
telecom country in 2011, and
fourth largest telecom market
in terms of revenue in 2010
(preceded only by USA, Japan
and China)
16/11/2012
Source: Teleco
© Finpro 14
Cloud computing in Brazil
• The Brazilian cloud based market is estimated to be 500 million
R$ by the year 2014 (192 M€)
• Most of the billing models in cloud based services are based on
fixed monthly fees as opposed to pay-by-use
• Media, content and event management platforms for various
actors in the upcoming football and Olympic games. Talks of
investments have already been seen on these areas.
• In the August 2012 the government announced an investment of
40 million R$ to cloud computing during the next 3 years
16/11/2012 © Finpro 15
Internet users in Latin America
There were an estimated 212,401,030 internet users in Latin America (representing
about 36.7% of the region population),according to statistics updated June 2011 by
Internet World Stats.
• Latin America top countries, as per June 2011:
– 1. Brazil: 75,982,000 (37.4% of the population in the country)
– 2. Mexico: 34,900,000 (30.7%)
– 3. Argentina: 27,568,000 (66.0%)
– 4. Colombia: 22,538,000 (50.4%)
– 5. Venezuela: 10,421,557 (37.7%)
– 6. Chile: 9,254,423 (54.8%)
• Internet user share in Latin America, by country, 2009-2013 (% of total):
• - 2009: Brazil (38%) / Mexico (17%) / Argentina (9%) / Other (36%)
• - 2010: Brazil (37%) / Mexico (18%) / Argentina (10%) / Other (36%)
• - 2011: Brazil (36%) / Mexico (19%) / Argentina (10%) / Other (36%)
• - 2012: Brazil (35%) / Mexico (19%) / Argentina (10%) / Other (36%) (estimated)
• - 2013: Brazil (35%) / Mexico (20%) / Argentina (10%) / Other (36%) (estimated)
16/11/2012 © Finpro 16
Facts about Mexico as a market place
16/11/2012
• Network of free trade agreements
> 45 countries
• Competitive and young labor force
• 11th largest economy in the world
• GDP per capita, 15,000 USD per
year one of the highest in Latin
America
• Home of America Movil, 3rd
largest mobile operator in the
world
• 112 million consumer market
• Rank #53 in Ease of Doing Business
(easiest in Latin America)
• Investment grade & IP protection
agreements
• Stable economy and political
environment
• Efficient hub from a transport and
logistics standpoint
© Finpro 17
Mexico’s mobile sector
• The mobile sector remains one of the main drivers of telecom industry growth.
Driven by a booming GSM sector, Mexico’s mobile industry grew at
approximately 17% per annum, achieving more than 80% penetration by early
2010.
• Broadband is the other principal driver of growth in Mexico’s telecommunications
market. Both cable modem and ADSL continued to enjoy strong subscriber growth
in 2009 at a combined average growth rate of around 35%.
• Forecast mobile subscribers and penetration rate – lower growth scenario –
2011 – 2016
(Source: BuddeComm, forecasts)
Year Subscribers
(million) Penetration
2010
(BYE) 90 80%
2011 96 85%
2012 102 89%
2013 107 93%
2014 111 95%
2015 115 97%
2016 117 98%
16/11/2012 © Finpro 18
Social networking in Mexico
• Social networking in Mexico will increase by 17.9% in 2012,
making it the fifth-fastest-growing market worldwide,
according to eMarketer estimates. Much of this expansion will
come from Facebook, which is expected to reach 25.6 million
users in the country by the end of 2012.
• Top five social networking countries, ranked by growth, 2012:
• 1. India: +51.7% change in number of users
• 2. Indonesia: +51.6%
• 3. China: +19.9%
• 4. Mexico: +17.9%
• 5. Brazil: +14.4%
Source: (emarkets) 16/11/2012 © Finpro 19
Mobile banking in Mexico
• Despite a relatively well organized banking sector, banking
penetration remains low compared to mobile penetration.
• Mobile payments transformation, led by alliances between
telcos, banks and device manufacturers .
– Latin American operator group América Móvil is launching a
mobile money service in Mexico, aimed to serve the nation’s
underbanked population. The service, called Transfer, will be
launched by a joint venture between the operator and its banking
partners: Citibank´s Mexican unit Banamex and local bank
Banco Inbursa.
– Movistar has partnership with MasterCard in Latin America to
provide mobile banking solution
16/11/2012 © Finpro 20
Facts about Colombia
• Colombia is ranked as the 42nd easiest country to do business in (Ease of Doing Business 2012)
• Colombia is the leader in Latin America in investor protection (5th rank in the world)
• Colombia is one of the few Latin American countries with a Ministry for Information and Communication Technology (Mintic)
• Colombia is an open market with Free Trade Agreements with more than 50 countries.
• Colombia has a signed Free Trade Agreement with the European Union coming into force in 2012
16/11/2012
Source: Proexport, World Bank Ease of Doing Business, Ministry for Information and Communication Technology (Mintic)
© Finpro 21
Use of Internet in Colombia
• There are a total of 6 million
internet subscribers. Internet
subscribers expected to reach 10
million in 2014 (63.9% fixed
subscribers and 36.1% 3G
connections)
• There are 25 million internet users
(Population in Colombia 46 million)
• Government launched ”Live
Digitally” project, massifying
Internet
• 96% of municipalities Colombia
will have fiber optic connection
and high speed internet by
2014, an investment of 635
MUSD (One of the most
ambitious internet projects in
Latin America)
• Colombians spend 7.6 hours week
on social networking
• Colombia’s IT spending increases
almost 15% yearly
• Shopping online is increasing.
47% of internet users in Colombia
have made purchases online, and
84% of persons that visited e-
commerce sites made a purchase
• 16 million Colombians use
• Most of public sector purchasing
through governmental internet
portal.
• Colombia was ranked 1st in E-
government services in Latin
America in 2011 (world rank 31)
Source: Everis, Proexport, TIC ministry
16/11/2012 © Finpro 22
• Mobile phone penetration is
103 % in Colombia
• Many operators use
Colombia as a test market for
new applications and
products
• 25% of new telephone
purchases are smart phones in
Colombia in 2012
• Number portability has been
possible since June 2012.
Mobile sector Colombia
Mobile operators and users
Source: MasterCard Mobile Payments Readiness Index (MPRI),
Colombia is the 2nd biggest country in
Latin America for mobile payments after
Brazil 21% of consumers are ready to pay
purchases with mobile phone
26% of mobile purchases are done
through a mobile phone and 21% of
purchases in point of sales are done
with a mobile phone
16/11/2012 © Finpro 23
Cloud computing in Colombia
• Cloud computing business in Latin America has been estimated to
be worth of 280 million USD in 2012. [IDC, International Data
Corperation]
• In Colombia 62% of the 800 largest companies are already using
cloud computing services for collaboration and correspondence,
CRM, talent management and infrastructure
• 97% of the most important companies in Colombia believe that
cloud computing is the future trend in Colombia
• Colombian company Eforcers S.A, was ranked 1st in Latin America
in cloud computing services by Talkin Cloud
Source: Study by Avanxo y Position Comunicaciones of 800 most important companies in Colombia
16/11/2012 © Finpro 24
Facts about Chile
• Chile is Latin America’s most developed, stable and
competitive country.
•It is ranked as the 37 easiest country to do business in
(Doing Business 2013)
• Chile is an open market with Free Trade Agreements
with 58 countries.
•Chile has a Free Trade Agreement also with EU
countries.
• Chile is member of OECD, since 2010.
Source: IMF, FIC, CIA World Factbook,
Doing Business
2011
Population (million) 17,2
GDP Nominal (Billion USD) 248.602
GDP PPP /cap (USD) 17 380
Annual Growth 6,5 %
Foreign Direct Investment
(BillionUSD) 17,5
Imports (BillionUSD) 72,3
Exports (BillionUSD) 86,3
Inflation rate 3,3 %
16/11/2012 © Finpro 25
Use of Internet in Chile
• There are a total of 10 million internet
users of which 4 million are mobile
internet users. (Population in Chile
17,2 million)
• 32% of the population owns notebook
or netbook in Chile, which is one of the
countries with the highest percentage.
• Chileans are connected to the Internet
an average of 19 hours per week.
• Shopping online is increasing. 71%
of internet users in the country have
made purchases online, and the
volume of transactions is expected to
rise by by 18% to 1700 million USD.
• Most of the large banks, such as
Banco de Chile and Banco Estado,
provide online banking services.
– There is one totally virtual bank,
Tbank, in Chile, offering all its
services through internet.
• Most of public sector purchasing
through governmental internet portal.
16/11/2012 © Finpro 26
Social networking in Chile
• In Chile a 63 % of the
interviewed persons belong
to a social network
according to Ericsson
ConsumerLab survey 2012
• Chileans spend one third of
their browsing time on
social networking pages.
• Chilean users spend 8,2
hours/ month on this type of
pages.
16/11/2012 © Finpro 27
• In 2011, the investments in the
telecommunications sector in Chile
grew by a 25% in comparison to
the previous period adding up to a
2 400 million USD.
• Number portability has been
possible since 2012.
• “40 % of Chileans are connected to
the Internet through their
smartphones.” This is estimation of
the Ericsson ConsumerLab study in
2012.
• Now every fourth mobile phone is a
smartphone. 50% of the
interviewed are planning to buy a
smartphone when buying a new
mobile device.
Mobile sector Chile
Mobile Internet sector market share
June 2012
Source: Subtel 2012 16/11/2012 © Finpro 28
Cloud computing in Chile
• Cloud computing business in Latin America has been estimated to be worth of 280 million USD in 2012. [IDC, International Data Corperation]
• Investments in cloud computing are estimated to reach a 100 million USD in Chile in 2012.
• It is estimated that 40% of the Chilean companies will use cloud service by year 2015. This including public, private and hybrid clouds.
• Chile is considered to be one Latin American country that has adopted Cloud computing services in large and medium sized companies. [SONDA]
Source: Microsoft
16/11/2012 © Finpro 29
Argentina
16/11/2012
Argentina is one of the five largest economies in South
America.
Argentina's macroeconomic performance in recent years
has been strong.
Consecutive years of rapid and pro-poor economic growth
enabled poverty and unemployment to be cut to levels
experienced prior to the country's 2001-2002 economic crisis.
Economic activity grew about 9 % last year. This growth has
been spurred by private consumption and investments.
© Finpro 30
ICT Sector
16/11/2012
• Argentina is the second largest IT market in the region.
• Argentina's IT market is forecast to increase to US$5.0bn in 2012, up by around 9%
since last year.
• Computer hardware sales: US$2.4bn in 2011 to US$2.5bn in 2012, +6%.
• Software sales: US$539mn in 2011 to US$591mn in 2012, +10% .
• IT Services sales: US$1.6bn in 2011 to US$1.8bn in 2012, +12%.
Key Trends & Developments
• There is growing interest in cloud computing.
• IT services revenue is expected to grow faster than the market as a whole, with
organisation looking for help to implement cloud computing.
• Educational; government's three-year programme to deliver 3 Million PCs to public
schools over the 2010-2012 period.
© Finpro 31
Cloud Computing in Argentina
16/11/2012
• Cloud Security Alliance Argentina; the results of survey of 100 IT specialist that
recognize that the trend is to move to the cloud.
• 76% said that their company was still not ready to migrate to the cloud.
• 71% said that they do still not trust in their suppliers for the implementation.
• Dirvers for choosing Cloud Computing;
• 22% cost savings.
• 21% better availability .
• 19% for making easier processes.
• 14% for standarization.
• Main barriers for choosing cloud computing;
• Security issues.
• Confidentiality
© Finpro 32
Use of Internet in Argentina
16/11/2012
Main categories
Avg time consumed per age range.
Hours per visitor.
© Finpro 33
Argentine SMARTPHONES
16/11/2012
• 41 Million active mobile phone lines.
• 10 Million Argentines, or 25% of the population, already have his/her smartphone.
• 25% prefer to keep the smartphones before the TV.
• 70% of the users do not leave the house without the phone.
• 70% access everyday to Internet.
• 90% use the smartphone even when staying at their homes.
• 74%, use them while walking , 64%. In the
public transport.
• 20% admitted to have changed his/her mind,
about a product, already in the shop, after
checking information through the smartphone.
• 73% use phone for checking mails, and social
networks and 45% for shared video.
• 71% of internet users are Online buyers. Source. El cronista based in Google report.
© Finpro 34
Social Networks and Internet mobile
16/11/2012
• Persentage of users accessing through mobile phones;
Facebook: 19 million users - 37%
Twitter: 7 million users. - 47%
• Traffic from mobile devices in internet correspond
77% to mobile phones and 18% to Tablets.
• Android system was the most used mobile
plataform (56.3% visits web pages).
• Tablets access to internet is lead by iPad (78.3%
visited web pages). Vía comScore.
Source: Carrier y Asociados:
© Finpro 35
Operating systems
16/11/2012
% Share visited Web pages
Mobile
phone.
Tablets
Android 56.3% 19.5%
iOS 10.7% 78.3%
Symbian 10.6% N/A
RIM 4.3% 2.2%
Windows Mobile 0.6% N/A
Other 17.6% N/A
Note: due to local import restrictions, it is not alowed to import cell phone manufactured
abroad, for that reason Apple is not present in the phone market.
System share in Mobile phones & Tablets March 2012 Source: comScore Device Essentials
© Finpro 36
Summary
USA • Mobile everything
• Mobile Business Processes
• Consumerazing IT
• Social - New Social
• Gaming - mobile
• Gaming as mainstream media
• Gamification
• Edutainment
• Virtual goods/microtransactions
• Digital livingroom, next screen, Smart TV
• Big Data, Data Analysis 2.0 (dynamic, real time)
• Social / mobile healthcare
• Addressbook ownership
• Search / discovery
• Cloud Computing
Latin America
• Mature operator business in
most countries
• Growing Internet usage
• Mostly mobile internet
• Cloud offers jobs
• Mobile banking solutions
coming
• Good test market for mobile
apps or services
16/11/2012 © Finpro 37
Contact Information
Kimmo Aura
– Regional Sales Manager, Americas
[email protected], +358 40 504 8317
Special thanks to:
– Silicon Valley, USA : [email protected]
– Mexico: [email protected]
– Brazil: [email protected]
– Chile: [email protected]
– Colombia: [email protected]
– Argentina: [email protected]
16/11/2012
© Finpro 38
Thank you!