|
|
 |
|
Viewing report
|
|
|
|
Chile Broadband & Internet Services Markets
Frost & Sullivan, Aug 2003
Migration toward Broadband in Top Gear
The Chilean broadband Internet access market continues to be the most active among those in Latin America, carried forward by the momentum of a whopping 199 percent growth rate in 2002. Relatively stable economic conditions and an excellent regulatory framework that encourages competition are the key reasons attributed to this fabulous growth. A strong thrust toward the development of national web sites and several e-commerce and e-government initiatives has urged the Chileans - both business and residential users - to use various broadband technologies. In fact, the migration to broadband solutions was high during the 2002-03 period and is likely to increase further in 2004.
This Frost & Sullivan research examines the Chilean market for traditional (dial-up) Internet services and broadband access solutions such as asymmetric digital subscriber line (ADSL), cable modem, and others {integrated services digital network (ISDN), wireless, and satellite}. It also provides comprehensive information on the level of broadband evolution and competitive landscape, which includes Internet service providers (ISPs), telecommunications companies, and cable operators.
Intense Competition Leads to Market Expansion
Small market size makes intense competition inevitable. This, in turn, is likely to benefit customers as fierce price wars among participants offering different technologies will drive down prices and make Internet adoption more affordable. Using specifically-designed marketing strategies and campaigns, service providers are expected to focus on interior regions to extend their market reach and drive future growth.
The fight for market leadership is on between digital subscriber line (DSL) and cable modem connections and the subscriber base of DSL is likely to surpass that of cable modems in 2004, says the analyst. This is primarily due to the superior quality of service and performance such as mobility and flexibility of DSL besides its broader coverage, a critical requirement for the business sector.
Strong Government Support Retains Market Momentum
Chiles digital agenda for the next five years concentrates on the further development of e-government and e-commerce. Policies and initiatives include the National Info Centers Program; Enlaces, an Internet training program for students; and the Digital Alphabetization Program through which the government aims to train 100,000 Chileans in the use of the Internet. Though government-run programs aim at reducing the access gap rather than the subscription gap, the long-term effect of these programs is expected to be positive, says the analyst.
The maintenance of regulatory openness and active public policies by the government are enabling service providers to offer superior quality service while maintaining their revenue margins. Looking forward, market growth for Internet and broadband access in Chile is likely to be defined by sustained economic development and the resulting increase in disposable income for households for expenditure on nonbasic goods and services.
|
|
|
|
