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Stabilizing Political and Economical Environment Boost Data Communications Services Market in Colombia

Stabilizing Political and Economical Environment Boost Data Communications Services Market in Colombia

PALO ALTO, Calif., Sept. 13 /PRNewswire/ -- With an increasingly stable economical and political environment in the country and the promise of new technologies, the data communications services market in Colombia offers great opportunities for investors to turn a profit. The market has matured over the past decade owing to the growing communication needs of corporates and the intense activity of service providers in terms of solutions releases.

New analysis from Frost & Sullivan (http://www.telecom.frost.com/ ), Colombia Data Communications Services Markets, reveals that revenues in this market totaled $234.6 million in 2004 and can reach $386.9 million in 2008.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the Colombia Data Communications Services Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at [email protected] , with your full name, company name, title, telephone number, fax number, e-mail address, city, state, and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

The Colombian Government remains a key partner in improving the booming environment for investment in the country. It consistently implements security policies to stabilize democracy in the country, thereby guaranteeing a good setting for data communications services market growth.

"Government deregulation plans in the telecom industry are encouraging the launch of a large number of companies focused on providing value-added services," notes Frost & Sullivan Research Manager Romina Adduci. "Integration between information technology (IT) and telecommunications has been strengthened by legislation, thereby motivating the entrance of regional and international participants from related industries into the data communications services market."

This has also heightened competition and forced companies to lower costs. Although cost-effective services have favored end users, they have resulted in restricting revenue growth. To increase profits, the Colombian market has to focus on stimulating sustainable growth through providing product differentiation, thus avoiding equivalent offerings that lead to price wars.

Increasing real-time business communications between headquarters and remote offices is fueling an uptake of data communications network solutions in multinational and large local companies. Service providers need regional coverage and flexible invoicing to benefit from these geographical trends. Offering customized value-added services is a must to keep up demand since market penetration has reached saturation levels in these companies.

In addition, the huge Colombian public segment, composed of Government agencies with the need for vast frame relay layout to configure point-to- point/multi-point connections, will be responsible for shaping future market growth. Growth in this segment remains sensitive to internal political turmoil and elections.

"Internet Protocol is the core offering and the leading service in the data communications services market, catering to lower-end businesses because of its cost effectiveness and easy deployment," says Adduci. "It is likely to replace asynchronous transfer mode (ATM), especially in customers with increasing bandwidth requirements."

ATM, X.25, and leased lines are experiencing slow growth since they are mature technologies at an advanced stage of development. However, ATM can handle large amounts of traffic flows, integrate voice, data and video applications, and hence consolidate as a core provider network infrastructure.

Dedicated lines are likely to maintain a specific market niche, especially in industry segments most sensitive to security concerns. Medium-level business segments will increase demand for frame relay services, especially in the industrial, insurance, financial, oil, gas, and energy sectors.

Colombia Data Communications Services Markets is part of the 9736 subscription. It evaluates the use of data communications services such as X.25, ATM, frame relay, dedicated lines, and IP. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/ .

Colombia Data Communications Services Markets A832 Contact: Mireya Castilla Corporate Communications - North America P: 210.247.3830 F: 210.348.1003 E: [email protected] Janina Hillgrub Corporate Communications - Europe P: +49 (0) 69 77 0 33 11 F: +49 (0) 69 23 45 66 E: [email protected] Sarah Lourdes Corporate Communications - Asia Pacific P: +603 6204 5878 F: +603 6201 7402 E: [email protected]://www.frost.com/

Keywords in this release: data communications services, Colombia, political, economical, security, X.25, asynchronous transfer mode, ATM, frame relay, dedicated lines, internet protocol, IP, information technology, IT, telecommunications, research, information, market, trends, technology, service, forecast, market share

Frost & Sullivan

CONTACT: Mireya Castilla, Corporate Communications - North America,
+1-210-247-3830, or fax, +1-210-348-1003, or [email protected] , or
Janina Hillgrub, Corporate Communications - Europe, +49-0-69-77-0-33-11, or
fax, +49-0-69-23-45-66, or [email protected] , or Sarah Lourdes,
Corporate Communications - Asia Pacific, +603-6204-5878, or fax,
+603-6201-7402, or [email protected] , all of Frost & Sullivan

Web site: http://www.frost.com/
http://www.telecom.frost.com/

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