Mobile Providers Target U.S. Hispanic Customers

The recent effort to market mobile products to a hispanic audience will likely be met with mixed results. While demographically speaking, certain groups of people do indicate a strong brand loyalty, they also expect real may also be expecting real value for their dollar. Can mobile providers actually provide this? I tend to doubt this…

Cisneros Group, the largest shareholder in Spanish-language media firm Univision Communications, has its eye on Hispanic mobile phone users.

The company is expanding a pay-as-you-go mobile phone service that it started last year in parts of Texas, Arizona, California and Puerto Rico. It will bring the service — called Movida — to Florida and elsewhere on the East Coast in 2006.

That could spell trouble for TracFone, the wireless service with the most Hispanic customers.

TracFone — owned by Mexico’s America Movil (NYSE:AMX – News) — ended 2005 with 6.1 million customers, up 39% from a year earlier.

Movida, which launched services in May, hasn’t disclosed how many customers it has. But it’s aiming to have 1 million by the end of 2007, says Enrique Garcia, the company’s chief executive. “We’re very bullish on getting there,” he said.

Movida’s entry into the U.S. market should shake things up — though Movida isn’t moving at full speed yet. A big name in Latin America, Venezuela-based Cisneros Group has marched into the U.S. wireless business quietly, says Roger Entner, an analyst at the research firm Ovum. “It’s been a stealth launch,” Entner said.

Movida should soon step up its marketing efforts. It hired a Miami-based ad agency and plans to spend $20 million on marketing this year. Source: Investor’s Business Daily

[tags]hispanic customers,pay-as-you-go mobile,mexico’s america movil,movida[/tags]