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Telecommunications in South America Market Trends
Faulkner, March 2003, Pages: 32
South America continues to wrestle with the issues of privatization and liberalization. Most of the countries in the southern part of the continent, however, are further along in their open-market development than their neighbors in in the northern part. Brazil and Chile, for instance, have been leaders for the rest of the region to follow. Other countries like Peru, Paraguay, and Uruguay have been slow to privatize and liberalize. Therefore, great disparity exists between those that have advanced and those that have barely begun. The region also suffers from an ever-broadening gap between the level of service offered in rural and urban areas, with most rural areas still scrambling to have basic telephone service. Nevertheless, despite these obstacles, South America has been the region of choice for many foreign investors, who look at the solid population figures and market potential of countries like Brazil, Chile, Venezuela, and Argentina and want to capitalize on the wealth of opportunity. With a struggling global telecommunications market and the ongoing problems battling an entrenched monopoly carrier, however, this investment has not been as strong as expected.
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