Mobile messaging in Latin America is emerging as a key growth opportunity for operators in the region.? While adoption traditionally lags uptake in other markets, we believe that the region will experience significant growth as tariffs fall, networks become interconnected, data-enabled handsets become more affordable, and fresh and innovative content permeates the region.? In this report we will answer the key question: how big is this opportunity??

Latin America?s six largest markets, Argentina, Brazil, Mexico, Chile, Colombia and Venezuela will be examined in detail with mobile messaging forecasts provided at the country level for each market. Each country will be sized and subsequently analyzed in terms of the four key factors that Pyramid feels spurs messaging adoption. A complete set of forecasts for the Latin America Region are provided in this report showing Pyramid?s view of the whole region.?? We also highlight case studies from five operators outside of Latin America, in order to provide insight on how players have increased messaging adoption in other parts of the world, and what impact it has on the Latin America region.

Pyramid believes that mobile messaging will become an increasingly important factor in Latin America?s wireless landscape going forward, and that this report will enable operators, vendors, content providers and investors working closely in the region to effectively capitalize on this opportunity.

The report shows that revenues from services such as SMS, MMS, etc. will exhibit robust growth to 2010. The adoption of such services have been impeded by network interoperability, low penetration of data enabled handsets, lack of content and high tariffs, operators have made significant progress, with the percentage of revenue coming from mobile data surpassing double digits on a regional level, with markets such as Venezuela and Argentina leading the charge.

The extent of this progress is heavily fragmented across countries and among operators. Report author Marc Einstein added: "While operators in most large markets have SMS interconnection, there are currently no similar MMS agreements. Operators must strive to achieve such accords if they want the service to become anything more than a novelty to a select group of users." Pricing will also be a major sticking point going forward as Einstein added: "the rest of the region could learn lessons from the Venezuelan market, as applications such as peak and off-peak SMS pricing and all-you-can-eat messaging plans have enabled operators to realise the full potential of these services."

As revenues from SMS and MMS surge, they will also serve as a counterweight in combating decreasing mobile voice tariffs. The report suggests mobile voice ARPS to fall by 16% to US$10.13 from US$12.11 between 2004 and 2009, while data APRS will increase 143% from US$.84 to $2.04 over the same period. Infrastructure vendors and content providers will also benefit as increased usage of basic services drives demand for more sophisticated applications.