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SUMMARY
Migration toward Broadband Gains Momentum in Latin America An increasing demand for greater bandwidth and faster connection speeds iscompelling traditional dial-up Internet users in many Latin American countries -particularly, Chile and Brazil - to opt for higher speed broadband Internetaccess solutions. This significant shift in market dynamics has enabled largecable operators such as VTR to evolve as key participants in the overallInternet business segment. Similar developments are also likely in the othercompetitive Internet markets of Latin America. However, replication of marketsuccess will depend on the aggressive pricing (read as low pricing) of serviceproviders besides marketing and bundling strategies and strategic alliances withcontent developers. This Frost & Sullivan research examines the Latin American market fortraditional (dial-up) and broadband Internet services such as asymmetric digitalsubscriber line (ADSL), cable modem, and others - integrated services digitalnetwork (ISDN), wireless, and satellite. It also provides comparativeinformation on the level of broadband Internet evolution and competitivelandscape {which includes Internet service providers (ISPs), telecommunicationscompanies, and cable operators} for six different countries: Argentina, Brazil,Chile, Colombia, Mexico, and Venezuela. Utilization of Indirect Marketing Channels to the Fore Leveraging on existing reputation and customer relationships, distributors ofInternet and broadband services such as Netizen in Argentina and UOL in Brazilhave successfully established large customer bases for broadband Internet.Similarly, telecom and cable operators have also cashed-in on their vastinstalled base for attracting potential broadband customers. These participantshave largely benefited from not having to spend a great deal on acquisition ofnew customers. "Future alliances among Internet service providers (ISPs), cableoperators, and media groups are likely to decide the winners and losers in theregion for broadband Internet," opine the analysts. "Success isexpected to favor those companies that are one step ahead of competition,"they add. Innovative Business Models - the Key to Market Success The majority of the Latin American countries are affected by economicdownturn and political instability. Due to this, participants in the region haveadopted alternative and customer-friendly business models including freeInternet access (in Argentina) and prepaid Internet cards (in Mexico) to drivebusiness, especially in the lower strata of society. These strategies may not becapable of generating significant revenues directly for traditional Internetservices. Nonetheless, they are proving to be attractive for other media-relatedsectors, and hence, have begun to create sizeable business volume. Such creativeways of providing low-cost, high-value services - especially for broadbandInternet and utilization of new technologies like 'Wi-Fi' - is likely to helpparticipants in being 'first to the market' and gain significant market share. "While opportunities for market growth still exists for traditionalInternet services - at least in remote areas outside the metropolises - prudentbusiness models are also expected to tap their existing customer base for new,revenue-generating broadband Internet services," say the analysts."Apart from that, the micro and the small and medium enterprise (SME)segments that constitute 95 percent of the businesses in the region are likelyto be lucrative target markets for broadband suppliers," they conclude. TABLE OF CONTENTS
- EXECUTIVE SUMMARY
- Market Overview
- Introduction
- Internet Services Assessment
- Competitive Analysis & Market Trends
- Key Research Findings
- Argentina
- Brazil
- Chile
- Colombia
- Mexico
- Venezuela
- LATIN AMERICA BROADBAND & INTERNET REGIONAL MARKET
- Market Overview
- Introduction
- Country Market Analysis
- Regional Competitive Perspective
- Frost & Sullivan Awards
- Introduction
- Marketing Strategy
- Product Innovation
- Product Line Strategy
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