Latin America Communications Market

Featuring Tarcisio Ribeiro, Vice President, Latin America and Carribean Sales
The mobile phenomenon has become a way of life globally,
with mobile services approaching and even surpassing wireline
usage in some markets. In some Latin American countries, mo-
bile services are often the first voice services ever offered. This
podcast addresses the explosive growth in the marketplace
and how factors such as deregulation and network moderniza-
tion are helping to expand the opportunities in the region.
> To download podcasts, visit www.inspirethenewlife.com

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Additional References (on tellabs.com)

Not Going South, Emerge Winter 2006 - ‘07
www.tellabs.com/news/reprints/
emerge_winter06-07_notgoingsouth-reprint.pdf

Tellabs® IntegratedMobileSM Solution

www.tellabs.com/solutions/integratedmobile/tlab_integratedmobile.pdf

Tellabs® IntegratedMobileSM Primer

www.tellabs.com/solutions/integratedmobile/
tlab_integratedmobile_primer.pdf

Tellabs Operational Efficiency in Evolving Mobile Networks

www.tellabs.com/papers/tlaboppeffncy.pdf

Opportunities and Challenges for Mobile Infrastructure Migration

www.accelacast.com/programs/telephony_infrastructure/

One Tellabs Center • 1415 West Diehl Road • Naperville, IL 60563 • 630 798 8800 • www.tellabs.com
Statements herein may contain projections or other forward-looking statements regarding future events, products, features, technology and resulting commercial or technological benefits and advantages. These statements are for discussion
purposes only, are subject to change and are not to be construed as instructions, product specifications, guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned by Tellabs Operations,
Inc., or its affiliates in the United States and/or other countries: TELLABS®, TELLABS and T symbol®, and T symbol®. Any other company or product names may be trademarks of their respective companies. © 2007 Tellabs. All rights reserved.
Latin America Communication Markets (continued)

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The Tellabs® IntegratedMobileSM Solution

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E-1 Environment

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NG-SDH, MPLS, 
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One Tellabs Center • 1415 West Diehl Road • Naperville, IL 60563 • 630 798 8800 • www.tellabs.com
Statements herein may contain projections or other forward-looking statements regarding future events, products, features, technology and resulting commercial or technological benefits and advantages. These statements are for discussion
purposes only, are subject to change and are not to be construed as instructions, product specifications, guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned by Tellabs Operations,
Inc., or its affiliates in the United States and/or other countries: TELLABS®, TELLABS and T symbol®, and T symbol®. Any other company or product names may be trademarks of their respective companies. © 2007 Tellabs. All rights reserved.
Podcast Transcript
Latin America Communications Market
Featuring Tarcisio Ribeiro, Vice President, Latin America and Carribean Sales
Monsho: What’s up? Monsho here today
for another session of Get Schooled. It’s
good to see you in class again. Good to
see me, too?
It’s time for today’s pop quiz.
Name one country in Latin America
that’s seeing explosive growth in both
landline and mobile subscribers. Is it: (a)
Mexico, (b) Brazil, (c) Argentina, or (d)
Colombia? I could do this all day.
Don’t know the answer? Don’t go loco.
Sit back, relax. It’s time to get schooled.
Dave Morfas: Hi. I’m Dave Morfas, and
we’re here today with Tarcisio Ribeiro to
talk about the Latin American communi-
cations market.
Tarcisio, I think at the highest level we
want to sort of set the stage. What can
you tell us about the communication
market on the whole?
Tarcisio Ribeiro: Sure, Dave.
First of all, let’s talk about some of the
major economies in Latin America. Let’s
look into Brazil and Mexico.
Brazil and Mexico are respectively the
12th and 15th largest economies in the
world in terms of GDP. In addition to
that, the Latin America region has been
through a period of unprecedented eco-
nomic and political instability. This insta-
bility has also sparked some deregulation
and modernization of telecommunica-
tion services. Let me give you a practical
example.
Ten years ago I used to live in Brazil. At
that time, if you wanted to have a fixed-
lined service for your home, you’d have
to wait 10 years to get a line from the
state-owned company or buy one in the
black market for around $10,000.
On the cellular side, my first cell phone 10
years ago, I paid $450, only for the line.
And even paying this amount of money, I
had to wait 11 months before I had my cell
phone in my hands. Nowadays you can
walk into a store and you can get a cell
phone in five minutes, and you only have
to pay for the services you use.
On the landline side, the operators in
country right now can activate a line
for you in five days, and you have your
service and you don’t need to pay any
initial fee like you used to have to pay in
the past.
Also, in terms of subscribers, if you look
into Brazil specifically, it’s the eighth-
largest country in terms of landline
subscribers and the seventh-largest
country in terms of mobile subscribers.
So these are great economies with a lot
of potential, both for service providers
and for equipment providers.
Dave Morfas: You’ve talked about some
of the advances 10 years ago, 20 years
ago versus now, and things have come a
long way. But what sort of challenges are
still in existence today?
Tarcisio Ribeiro: Okay. So all these
investments that I was talking about and
all this changing and modernization has
attracted the attention of many interna-
tional investors and some very powerful
consortiums that live in the region. With
that, we face now an environment of a
lot of competition on the service pro-
vider space. From the subscriber side,
they have lots of options. On the service
provider side, they have to have to face
new problems that they didn’t used to
have before, as the market used to be
monopolistic.
So right now, if you look on the landline
side, you have problems that are very
similar to what we face in the United
States. The traditional source of revenue
is what used to be POTS lines is disap-
pearing. So subscribers are migrating to
alternative source of communications.
They are using voice over IP, they are us-
ing wireless communications to replace
their landlines at home.
On the wireless sides, you have countries
where you have six or seven competi-
tive service providers competing for the
subscribers. This creates an environ-
ment where operators need to innovate
on their service offering and continue to
reduce costs to remain competitive in the
marketplace.
Dave Morfas: Given where Latin Amer-
ica is going, then, I would assume there
are multiple technologies and network
types that are being rolled out. Can you
tell us something about that?
Tarcisio Ribeiro: Yes. Let’s separate that
in three areas.
First, let’s look at the residential services.
Offering plain old telephone service is
not enough anymore. Operators or ser-
vice providers cannot live off just offering
what they used to do 10 years ago. In ad-
dition to that, the service providers need
new source of revenues. In order to find
this new source of revenues, they want
to enter into delivering video, data and
voice, and sometimes even mobility to
the subscribers. In order to do that, the
landline operators are looking to tech-
nologies like FTTX; most prominently
GPON. There’s a lot of evaluation in the
marketplace around GPON technology
and what kind of services they can of-
fer with this technology. Also, they are
looking into WiMAX. There is licensing
efforts going on across the region for
WiMAX, and the operators want to offer
services over this technology.
On the business services side, they
are trying to modernize their networks
and transition from frame relay and
ATM-based services into metro Ether-
net-based services, so there’s a lot of
investment going on there. And they try
to bring the existing subscribers that
use frame relay and ATM into a metro
Ethernet work.
The third one is in mobility sides. Opera-
tors are now evaluating third-generation
technologies for wireless, so you have
a lot of efforts towards UMTS and third
generation of CDMA systems. There
is some licensing options and licensing
efforts going on across the region, and On the business services, vendor comes So in summary, the combination of a
there’s a lot of evaluation going on, both with MSPP-like solutions that can growing market with a very competitive
on the RF side and the transport side of provide not only one kind of service, but landscape offers tremendous oppor-
the network. can also bridge the legacy services into tunities for Tellabs, and we are here to
the new services. Tellabs, for example, capitalize on those. We have increments
Dave Morfas: We’ve got quite a bit of
has the 8800 and the 6300 that allows across the region and we have very
positive momentum, we’ve got quite a
you to do that. The 8800 allows you to innovative products that allow all our
bit of change and migration going on. So
bridge your frame relay and ATM net- customers to succeed.
what are vendors doing to address these
works to new metro Ethernet services all
needs? Monsho: Okay, well, what’s the correct
across an IP/MPLS conversion backbone.
answer?
Tarcisio Ribeiro: Okay. That’s a good And the 6300 can leverage the incum-
question, Dave. bants of SDH that we have across all the Guess what, trick question. Latin Ameri-
region to deliver metro Ethernet services. ca overall is experiencing rapid growth in
So in terms of the residential services,
both landline and mobile subscribers. But
vendors are coming up with solutions On the mobile side, Tellabs has a very
did you know Brazil is the seventh-largest
that address high- bandwidth services. innovative solution with the Tellabs
country in terms of mobile subscribers?
So, for example, FTTX, GPON. 8600. It allows the operators to take the
traditional traffic, the traditional TDM To find out more, download the cheat
Tellabs, for example, has a very innova-
traffic of 2G and converge over the same sheet at inspirethenewlife.com.
tive solution with the 1150, where we can
infrastructure with 3G traffic that is
offer FTTP, FTTC and FTTN, all out of the Come on back tomorrow for another
much less predictable in nature.
same platform. That represents tremen- quiz, and maybe a mojito. I’ll be waiting.
dous cost reductions and flexibility to the All this is surrounded by our professional [Singing] Oye como va.
service providers. service solutions that allow our custom-
ers to implement these networks in a
quick and very reliable way.

One Tellabs Center • 1415 West Diehl Road • Naperville, IL 60563 • 630 798 8800 • www.tellabs.com
Statements herein may contain projections or other forward-looking statements regarding future events, products, features, technology and resulting commercial or technological benefits and advantages. These statements are for discussion
purposes only, are subject to change and are not to be construed as instructions, product specifications, guarantees or warranties. Actual results may differ materially. The following trademarks and service marks are owned by Tellabs Operations,
Inc., or its affiliates in the United States and/or other countries: TELLABS®, TELLABS and T symbol®, and T symbol®. Any other company or product names may be trademarks of their respective companies. © 2008 Tellabs. All rights reserved.