Strategy Market Planning Implementation Challenge Identification The competitive environment for Internet services in Latin America is changing dramatically. This region is undergoing a period of consolidation that will ultimately increase Internet penetration. While there are dominant domestic Internet service providers (ISPs) that have increased their market share through strategic mergers, important global companies have recently entered the market through the acquisition of existing local firms.

This Frost & Sullivan report offers the most up-to-date information on the Internet service markets in the top six Latin American countries, based on recent regulatory and market changes. It is the perfect resource for companies that want to take advantage of key market opportunities.

Market Participants Need to Expand Service Are

a A major restraint to the Latin American Internet service markets is the lack of an Internet culture, thus keeping penetration rates low. Companies can overcome this, however, by expanding their service areas to reach as many end users as possible.

"A few major trends are expected to dominate the Internet services market in Latin America," states the author of this report. "First and foremost, major market players should attempt to expand their presence, both within its primary country as well as outside their borders."

As more international players enter the market and national companies cross borders, the increased competition could lead to lower access prices, better local content pages, and an overall increase in Internet usage.

Keys to Success

Revenue derived from Internet access was the most dominant revenue stream in 1999, accounting for 75 percent of the total revenue. Non-access services, such as web hosting/housing, transaction support, and advertising, are expected to make up 75 percent of revenues by 2005.

This trend demonstrates the enormous potential for companies that can pro-vide products and services that meet the demands of an ever-changing market. The business sector will be the leading customer segment, requiring a combination of high-speed access and support services to successfully incorporate themselves into the Internet business environment.

A thorough understanding of the latest factors shaping this industry is crucial to market success. This report is indispensable to companies that want to take advantage of the market's opportunities for growth.