Latin America’s Data Network Services Revenues Reach US$5 Billion in 2001, According to IDC

MIAMI, FL – MAY 20, 2002 – Latin America's total data network services market reached US$5.0 billion in 2001, an increase of over 16% from 2000. Only a few years after its initial introduction in the region, IP data services equaled the market value of frame relay data services, a nearly 14% market share – far larger than longer-lived services such as ATM and X.25.


Data network services revenues in the region are expected to grow 33% by yearend 2002 driven in great part by increased government spending in Mexico and Brazil as well as further expansion on IP data services across the region. ATM and Frame Relay are expected to remain strong through 2005 resulting from X.25 and Leased Lines investments.

"IP-services are seeing tremendous growth in the region as operators are using legacy networks such as frame relay and ATM to provide IP-related services", said Felipe Rezk, Data Communications Research Analyst for IDC Latin America. "This trend is bolstering the growth of the total DNS market in the region despite the economic downturn in countries like Argentina", Rezk added. "Alternatively, leased lines are the predominant data service offered by operators to end users in Latin America, accounting for 56% of the total DNS market in the region. Close to half of these lines have transmission speeds equal to or less than 56/64 kbps, indicating that there is still a lot of room for improvement in bandwidth in the region", Rezk concluded.

Information like the above can be found in IDC’s recently released Latin America Data Network Services, 2002. The study sizes data services supplied by service providers to end users through Leased Lines, X.25, Frame Relay, ATM, and IP including IP-VPNs. For more information regarding IDC’s Latin America Data Network Services, 2002 or to purchase the complete study, please contact Barbie Cordero of IDC Latin America or at (305) 351-3131.

About IDC Latin America

IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Its research group is comprised of over 90 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. For more information, visit or call 305-351-3131.

About IDC

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

IDC is a division of IDG, the world's leading IT media, research and exposition company.