Markets

Despite its short history, Atinco is already operating in Mexico, Bolivia, Colombia and South Africa in 2006, and we expect to start up operations in Chile by the end of the year and in Brazil in early 2007.

In all of the countries where Atinco operates, growth potential in the cell-phone market is developing fast (at the levels of both penetration and the personalization and sale of content), ensuring exponential year-on-year growth. Atinco is confident that penetration rates in all of the countries where it operates will rise to the levels existing in Spain and in Europe as a whole.

México

In 2005 the population of Mexico was around 107 million, and the number of cell phones was approximately half that number.  Growth rates have been between 15 and 20% in recent years.

The growth outlook for the coming years is for a penetration rate of 80% according to most experts.

Atinco has been in Mexico since 2004, during which time it has employed a range of strategies to develop the market with the goal of maximizing the return on investment. Activities currently focus mainly on advertising in the printed press and the agreements made with third parties such as the Vips group, a leading Mexican restaurant chain. However, initiatives have also been launched in other media, including TV and radio.

Entretiene is Atinco’s flagship brand in Mexico. Atinco has also developed the “Club Entretiene” loyalty initiative where over 2.5 million Entretiene users can exchange the points earned on their purchases for gifts. Jetcel is also used as a secondary brand as a part of the diversification strategy targeting the most profitable media.

Advertising has been inserted in media such as Tv y Novelas, Orale, SKY, Por Ti, In Touch, TV Notas, 15 a 20, Veintitantos, Notas Para Ti, Récord, H Para Hombres, Club Nintendo, TV y Más, EXA, Día Siete and Tentación.

South Africa

South Africa has a population of almost 48 million, and it is forecast that over 33 million cell phones will be in use by 2007. Penetration is around 70%, although in some age bands (20-40 years) it is already close to 100%.

South Africa has a young population, and mobile data services such as SMS represent a significant share of ARPU, which is expected to rise to 10% in 2007.

Atinco uses the Jetcel brand to market its content and services in South Africa, opting for the printed press in its first initial positioning in the market. Nevertheless, the firm also competes in other media such as radio and television.

Atinco has negotiated annual agreements with South Africa’s two leading publishers, providing in some periodicals for first place in the category. The magazines currently supporting the generation of demand in South Africa are:

Media24: Huisgenot, You, Tvplus and Heat
Caxton: People, Mense and Bona

Advertisements are placed in either English or Afrikaans depending on the publication.

Colombia

In 2005 Chile had around 46 million people, and there were approximately 25 million cell phones, representing over 50% of the population.  This explosion took place basically between 2004 and 2005.  According to the country’s operators, almost 100% of the population will have a cell phone and will require services of all kinds within just a few years.

The mobile content and services category first took shape in Colombia only in December 2004, and the business model is therefore still very recent. In this period, competition has centered basically on mass circulation magazines, while other channels such as press and radio were gradually opened up over the course of 2005.

Atinco started up its operations in the Colombian market in August 2006, again using the Entretiene brand. The launch strategy is based on the printed press, and advertising has been placed with Colombia’s most relevant periodicals: TV novelas, TU, Automotores, Nueva and Shock.

Chile

In 2005 Chile had around 16.2 million people, and there were approximately 10 million cell phones, representing over 65% of the population. 

Based on an assessment of Chilean media, magazines, national and international TV, radio, cinema and Internet have the greatest affinity with Atinco’s business.

Atinco will base the launch on a presence in the printed press, the medium with the best fit for the purpose, through youth and/or high circulation national periodicals such as TV y Novelas , Tú, RTV, TV Grama, Miss 17, Cinegrama and Seventeen.

Bolivia

In 2005 Bolivia had a population of around 9.4 million people, and there were approximately 3 million cell phones.   Year-on-year growth has been around 500,000 new handsets, and assuming that this rate is maintained 100% of the population will have a cell phone within 8 years.

Atinco’s advertising policy in Bolivia is based on online actions, as well as broadcasting with the support of operators. This is because the country’s media structure makes it difficult to take a different approach to positioning in the market.