Probe: Internet Grows Slow in LA

www.lightreading.com FEBRUARY 13, 2003 PREVIOUS NEWS WIRE FEED

CEDAR KNOLLS, N.J. -- Growth of consumer/SOHO (small office and home office) Internet connectivity in Latin America remains problematic, reports analyst firm Probe Research. With the exception of Chile and Brazil, the depressed economies in most of the Latin American countries are holding back the rates of growth seen in Europe, Asia and North America.

"Affordability is a real issue," explains Probe analyst, Alan Mosher. "Consumers are unable to afford computers, and carriers hang on to high per-minute local call tariffs for dial-up connections. Consequently, connecting to the Internet can be an expensive proposition for the vast majority of households in Latin America."

According to Mosher, the cost of computers and a lack of cheap access have led to a growing number of Internet cafes. Users who need to get online but lack home connectivity make heavy use of these Internet cafes or access the Internet for personal needs from work or school.

Nonwired types of Internet access such as fixed wireless and satellite would seem to be natural services in the vast rural regions of many Latin American countries, and these are beginning to appear. But fixed wireless is an expensive technology and needs a solid base of enterprise users to make it economically viable. Satellite is also expensive for the end user.

Probe's report "Latin America Global Access Model," the latest in the Global Internet Service Provider Markets series, fully examines consumer/SOHO Internet connectivity in this market. It provides a forecast by type of consumer/SOHO connections for Argentina, Brazil, Chile, Colombia, Mexico, Venezuela and the rest of Latin America.