DENVER, United States-While some countries in Latin America are moving forward with advanced wireless networks, Central American nations are not likely to see commercial next-generation systems any time soon. Mass-market demand for data services remains weak due to low incomes, and market development lags behind the rest of Latin America.
Central America comprises the seven small nations of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Wireless services in these nations, many of which have high poverty levels, just recently have begun to take off.
Elizabeth Harr Bricksin, vice president-international for The Strategis Group based in Washington, D.C., is pessimistic about short-term wireless data prospects in these countries. “We have done forecasts through 2007, and in terms of (high-speed) wireless data, we are not forecasting anything through 2007,” she said. “In talking with the operators, it just seems like they’re just getting to the point of acknowledging that [next-generation networks] may be options in the future.”
The number-one reason is a perceived lack of demand for data services, she said, adding that even though Central America has a low personal computer (PC) penetration, that is not enough to drive the move toward advanced networks. “I think [that is] a compelling argument for Japan-where [there is] both a low PC penetration and users can afford it. However, I don’t see that in Central America.”
“The other thing is operators need a lot of capital in order to invest in these networks,” said Harr Bricksin. “I’m not sure operators in Central America have enough cash infusion to really get to that level.”
So far, the major carrier investors in the region-BellSouth International, Millicom International Cellular and Telef
