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Movistar Chile receives Frost & Sullivan Best Practices Award
Nov 09, 2010 (04:11 PM EST)
The Company received the 2010 Chile Mobile Services Market Share Leadership Award
SAO PAULO, Nov. 9, 2010 /PRNewswire/ -- Movistar Chile has been presented with the prestigious Frost & Sullivan Chile Market Share Leadership Award in the Mobile Services Markets as a result of a recent and rigorous research process. Based on the findings of this Best Practices research, this award recognizes Movistar's accomplishments in the Chilean market.
Movistar is the market leader in the Chilean mobile services market and has managed to maintain its position for over many years. The company has been successful in leveraging its position as a fixed-telephony company, offering fixed-mobile telephony packages and recently Wi-Fi fixed broadband together with mobile broadband. In 2009, the company led the market both in terms of subscribers and revenues, with a share of more than 40%.
For the Market Share Leadership Award, Frost & Sullivan used several criteria to benchmark Movistar's performance against key competitors, analysing the main drivers that allowed the company to reach the top position in the market. One very important aspect was the continued investment in 3G network expansion, as a strategy to increase mobile data services revenues. Movistar has little opportunities to further penetrate the market by acquiring new clients, as it already shows a very high penetration level. In 2009, the company invested nearly $200.0 million, mainly in 3G network expansion, which helped the company to increase revenues, to leverage ARPU and to pave loyalty with existing clients through mobile data services.
The company has also been successful in leveraging its position as a fixed-telephony company, offering fixed-mobile telephony packages and recently Wi-Fi fixed broadband together with mobile broadband. In Chile, Movistar is the leader not only in the mobile market, but also in fixed telephony services, a position that gives the company a strong opportunity to benefit from fixed-mobile services convergence. The unification process of its fixed (Telefonica CTC) and mobile operations (Movistar) constitutes a strong movement towards convergence, both in the internet and the telephony market, not to mention all cost-reduction and operational efficiencies resulting from the organizational synergy.
"All of these actions are helping Movistar to capture opportunities with the fixed-mobile convergence trend in Chile, and is reflected in its subscriber and revenue market leadership in the country," explains Jose Roberto Mavignier, industry manager for Frost & Sullivan's Information & Communication Technologies practice in Latin America.
Movistar's strong portfolio of devices, combined with the value-added services provided also contributed significantly to a competitive offer when compared to its most important competitors in the market. These factors play a paramount role in terms of solidifying perception of diversity and innovation for clients, stimulating consumption and impacting ARPU.
Movistar will be receiving the award during the 2010 Frost & Sullivan Latin America Best Practices Excellence Banquet, to be held December 2nd, at the Renaissance Hotel in Sao Paulo, Brazil.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
About Movistar Chile
Movistar counts with nearly 250,000 employees that work in 13 Latin America countries to offer services to over 200 million clients. In Chile, the company offers mobile, fixed, broadband and TV services, sharing the Movistar commercial brand for every segment. The group counts with nearly 10 million clients, 6,000 employees and generates annual revenues of approximately $2 billion.
SOURCE Frost & Sullivan