Latin America Broadband Internet Accounts Nearly Tripled in 2001, Says IDC Latin America

MIAMI, FL – JANUARY 11, 2002 – According to a just-released report by IDC Latin America, broadband Internet access accounts, defined as xDSL, cable, ISDN, satellite, and fixed wireless access (FWA), grew by 175% in 2001. In fact, five of the six top country markets (the exception being Colombia) experienced triple digit growth in broadband Internet access accounts. Although still very nascent in comparison to dial-up access, broadband more than doubled its representation in the region's total Internet accounts (which include dial-up and leased lines), increasing from around 2% of total accounts in 2000 to nearly 5% in 2001. "What makes broadband's growth still more impressive is that it occurred despite the unforeseen global economic downturn and the devaluation of the Real, actually exceeding IDC Latin America's growth forecast for 2001," says Melissa Utter, senior analyst at IDC Latin America and author of The Latin America ISP Markets, 2002.

 

2001 was the first year when xDSL Internet access surpassed all other broadband technologies in the aggregate, displacing the leadership of both ISDN and cable from the previous year. This strength was due in large part to the continued phenomenal performance of ADSL in Brazil, which represents the majority of xDSL accounts in the region. On a country-by-country basis, however, broadband markets continued to develop with a variety of flavors, with cable still ahead of xDSL in some markets and ISDN leading in others.

Can broadband access in Latin America continue to grow, given the difficult economic climate and a general capital expenditure contraction among the region's fixed line operators? "IDC Latin America's outlook is optimistic, based on the assumption that many providers will reach critical user mass and that the gradual onset of pay-for-content services will make the provision of xDSL and other broadband services more lucrative for service providers," says Utter. ISPs' commitment to make the required infrastructure investments and roll out new services appears strong, especially in the realm of xDSL and cable.

The Latin America ISP Markets, 2002 report series provides detailed market-sizing of retail Internet access accounts and value-added services revenues for the region and for the top-six country markets in Latin America. Service provider account share by access technology and revenue rankings by services are provided for each country. Additional information regarding account pricing and account segmentation is also provided. Finally, a five-year forecasts for accounts and revenues (by country) round out the report series. For more information regarding the study Latin America ISP Markets, 2002 – LA1213G or to obtain the complete study, please contact Barbie Cordero of IDC Latin America bcordero@idc.com or at (305) 351-3131.

About IDC Corporation

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com

IDC Latin America

IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Our research group is comprised of over ninety analysts in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru, and Puerto Rico. This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region.