Assessing operator scale in the mobile data era in Latin America

Mobile markets in Latin America are undergoing a structural shift. The sector has moved from the voice/SMS era – defined by higher average revenue per user (ARPU), lower data usage and static competition – to a data-intensive era in which operators face rising network costs, declining revenues per user and rapidly growing consumer demand for high-speed mobile data. This transition requires sustained investment in 4G and 5G networks, making financial sustainability and profitability crucial. In this context, operator scale has become central to ensuring that networks can deliver the capacity, coverage and quality consumers now require.

This study by GSMA Intelligence examines how scale, investment, quality and prices interact with each other in this new environment. It evaluates whether greater operator scale is now necessary to sustain network investment, whether an optimal range of scale exists, how consolidation and entry events influence consumer outcomes, and what these dynamics imply for forward-looking competition policy. Using a combination of quantitative and empirical methods, the report provides a comprehensive evidence base for assessing the role of scale in today’s mobile markets.