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Data Communication Services Play Important Role in Company's Productivity Finds Frost & Sullivan - The total Latin American data communications services market witnessed moderate growth in 2009, with Brazil and Mexico as the most important markets in the region
Data Communication Services Play Important Role in Company's Productivity Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Sao Paulo, Brazil, 2010/06/10 - The total Latin American data communications services market witnessed moderate growth in 2009, with Brazil and Mexico as the most important markets in the region.

   
 
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Being in a mature stage and partially affected by the global economic crisis, the total Latin American data communications services market witnessed moderate growth in 2009, with Brazil and Mexico as the most important markets in the region. Both countries are ahead in terms of offerings and penetration in the small and medium businesses (SMB) segment.

Although analysis of the proportional growth by country shows almost no change over time, the market noticed some technological changes in the region, which are likely to continue occurring due to migration of technologies, mainly from legacy to IP/MPLS. Also, as IP VPN links are expanding extensively, Circuits and Private Lines are decreasing their participation in the total market.

"Main drivers for the total market include the GDP growth of each country, the expansion of the SMB segment, the integrated offers of telecom services and IT (such as data centers and voice and managed services), and the development of specific verticals, such as government and finances" explains Frost & Sullivan Industry Manager José Roberto Mavignier.

Customized solutions for SMBs, offering of bundled services, and the development of new applications are other relevant growth drivers for the total Latin American market. The increasing use of business solutions (SAP, CRM, Web-based apps, and so on) in the region is likely to drive the demand for customized band-granted connectivity and fast response support.

"The total market is expected to grow from $4,023.7 million in 2009 to $6,188.9 million in 2015 at a compound annual growth rate (CAGR) of 7.4 percent", states Mavignier.

The Large Business segment is more mature in terms of data communications services adoption, and in 2009, it accounted for nearly 68.3 percent of the total market revenues. However, the evolution of the data communications services market in Latin America is likely to be restricted by the saturation of this segment, combined with the macro economic environment of certain countries, such as Venezuela.

Market saturation and intense competition are likely to shift the bargaining power from operators to customers in the most developed markets in Latin America. With companies demanding more security and quality in their data transmissions, we expect to see enhancements in customer service, network robustness, and service level agreement (SLA) improvements to make offerings more competitive.

If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Latin American Data Communications Services Markets-2010 / N754

 
 
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Data Communication Services Play Important Role in Company's Productivity Finds Frost & Sullivan

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