The monthly average revenue per user (ARPU) of Southern Cone cellular operators fell more than 50 percent during the last five years. In 1996, a cellular user in Argentina spent US$95 per month and one in Chile US$63, and those same subscribers paid US$45 and US$27, respectively, during 2000. Although the quantity of subscribers increased between 1996 and 2000, with penetration at around 20 percent, the average income per user fell sharply. Operators now hope to increase ARPU by offering value-added services, like short message service (SMS) and mobile Internet.
Argentina
After several deferrals, Argentina’s cellular operators announced that total calling party pays (CPP) between mobile users will be implemented as of 1 May. After this date, users will no longer have to pay for calls received from other cellular phones. This measure expands partial CPP, the regulation since April 1997, whereby calls from fixed telephony lines were not charged. In January 2001, a 12-percent decrease in charges for calls from fixed lines to cellular lines was implemented, with a commitment to a further 4-percent reduction next October and another 4 percent in January 2002.
Brazil
Renato Guerreiro, president of Anatel, confirmed that the agency will consult with the Brazilian carriers of bands A and B to determine if they want to migrate from the 1.9 GHz spectrum to 1.8 GHz. The objective is to preserve the 1.9 GHz frequencies for third-generation (3G) services. It is “necessary that there is consensus among the operators,” he said. Guerreiro added that Embratel decided not to participate in the auction of band C personal communications services (PCS) licenses, set for July. The band E auction was postponed until June.
Colombia
Colombia’s Superintendence of Industry and Commerce barred mobile operator BellSouth from selling subsidy-locked handsets to its subscribers. A complaint from rival Comcel instigated the decision. According to press reports, BellSouth had been selling two Nokia models that included subsidy lock features, ensuring the handsets could not be used by other operators and reducing churn rates. The government is investigating whether BellSouth broke the law by selling the handsets.
Mexico
Vodafone Group said the necessary regulatory approvals and the transfer of US$973.4 million to the Peralta Group for its 34.5-percent stake in Grupo Iusacell were completed.
