Since 1999, Mexico’s Internet industry has grown 29.8 percent (in revenues) over last year; incumbent telecom operator Telmex attributes a good portion of its sales to its customized affordability plans. Associate Analyst Sean Herman looks at the success of Telmex’s affordability plans as well as the growth of low-end computers available by manufacturers, and concludes that a market growth opportunity is developing.
MOBILE COMMUNICATIONS
Colombia: Millicom Says Hello to Ola
On August 31, after weeks of delay, Millicom International Cellular purchased Ola, the joint venture between Empresa de Telecomunicaciones de Bogota (ETB) and Empresas Publicas de Medellin (EPM). Analyst Elizabeth Arias argues that Millicom—which has been successful as a first mover in under-penetrated markets—will improve Ola’s market share somewhat, although a more intense competitive scenario in Colombia will limit their growth.