Latin America`s data network services market approaches $2.7 billion, IDC reports

Sparked by the liberalization and privatization trends in the telecommunications sectors throughout the region, Latin America`s data network services markets are undergoing rapid growth. Not even restrictions imposed by region-wide economic turmoil have snuffed the market`s rapid growth. International Data Corporation (IDC) reports 1998 revenues for the region`s top six country markets closed in on US$2.7 billion, and the number of lines/ports exceeded 425,000. By 2003, the number of lines/ports in these countries will more than double to 982,618.

"Today`s activity in the Latin American data network services market is a result of the privatization and liberalization trend that most countries are undergoing," said Hector Hernandez, senior analyst for IDC Latin America`s Telecommunications research program. "Although there are still hurdles present in countries like Brazil and Venezuela, new regulatory environments have leveled the playing field for new players. The new regimes have also opened additional business opportunities for established operators, equipment vendors, and data services users."

Brazil holds the majority of the market`s ports and lines with 42% as well as the largest share of revenues. Mexico is a distant second with 25% of all ports and leased lines but an even smaller share of total revenues.

With almost $2 billion in revenues for 1998, leased lines accounted for 71% of Latin America`s data services revenues. Still an important part of the Latin American data services market, X.25 services were in second place with 16% of revenues for the top six country markets. Frame relay services are growing at a rapid pace in the region, but this segment of the market was still only in third place in terms of its share of total revenues. Going forward, the most rapid growth is expected from ATM and frame relay services.

IDC`s Latin America Data Network Services, 1999 (IDC #B20253) study analyzes the data network services market in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. It quantifies each country`s total market value and forecasts the number of ports or lines in use for X.25, frame relay, ATM, and the number of leased lines. Information on market size with distributions by transport media, traffic mix, vertical markets, and connection speed are provided. The report also discusses the main drivers and obstacles for growth of data services in each market.

The study is available for purchase by contacting Daniel Cardamone at 305-267-2616 or dcardamone@idc.com. For more information about IDC`s Latin America Research programs, please contact Beth Freedman at 508-872-8200.

With a network of six country offices in Latin America and two regional offices in Silicon Valley, Calif. and Miami IDC provides full market coverage of PCs, mainframes, Unix systems and workstations, servers, desktop printers, professional services, local area networks, the Internet, telecom, RDBMS software, distribution channels, NT, and IT spending patterns in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. IDC also conducts primary research in Peru, Ecuador, Central America, and the Caribbean. International Data Corporation is the leading supplier of IT market information on Latin America.