Latin American ISPs Invest in Telcom

Internet access providers in Latin American are expected to spend up to $6.3 million on telecommunications equipment in 1998, according to IDC Research. IDC found that as the majority of Latin American consumers access the Web from home, the market focus should be business-to-consumer e-commerce. Brazil had the highest rate of home access at 79 percent, while Mexico had the lowest at 29 percent.

Exorbitant local telephone costs and slow bandwidth mean that an increasing number of users are turning to cable access providers. The cable market is expected to grow by 504 percent next year. Further, almost one-third of access providers in Latin America used MCI to connect to the US Internet backbone, with 26 percent using Sprint.

IDC found that overall Internet access providers expect the number of access accounts to increase by over 90 percent in 1999. Dial-up accounts are expected to increase by 87 percent and dedicated access accounts are set to increase by 124 percent.

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