The CAFTA Report
Cell phone use predicted to skyrocket

cafta flags
Insurance Telecom
Agriculture
Advertising
Labor laws
 Security
About us
Investments
Copyrights
Services
News feed
Business law
Classifieds
Contact Us


Cell phone use predicted to skyrocket

Special to The CAFTA Report


(Sept.1, 2010) Costa Rica's telecommunications market offers opportunities with its new liberalization, opening the door for competition across all segments and boosting mobile penetration to 136 percent by 2015 with prepaid subscriptions, according to a new report from Pyramid Research.

The report, "Costa Rica: Liberalization Will More Than Double Mobile Subscribers by 2015," offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from the firm's research. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies,said the company.

Costa Rica is the last country in Latin America to liberalize its telecommunications industry. Now, the regulator in Costa Rica has been quite busy with the liberalization of fixed and mobile services taking place. "Costa Rica is auctioning three mobile licenses over the next few months, and the process is expected to be completed before year end," said Jose Magana, senior analyst at Pyramid Research. "New regulation includes number portability and infrastructure sharing."

"Mobile penetration of the population closed at 52 percent in 2009, one of the lowest rates in Latin America and not consistent with the income level of the population," said Magana. "We forecast that after liberalization, mobile penetration will advance to 136 percent by 2015 with prepaid subscriptions accounting for 79 percent of the total, and that mobile revenue will advance to $831 million by 2015 from $603 million in 2009, with gains coming mostly from data services, such as mobile broadband."

Due to the competitiveness of the new liberalized market and the attractiveness of mobile data services, 3G handsets will quickly gain share in the total base, even ahead of Costa Rica's Central American peers. By 2015, 40 percent of all handsets will be 3G. "The lack of subsidies in Costa Rica make replacement of handsets very expensive for subscribers, but we forecast that competition will boost the adoption of advanced handsets, particularly among the high-end segment," added Magana.

The report was prepared before telecom officials in Costa Rica said Aug.31that the concession of spectrums for cell companies might not be finalized for a year,if then.

The report is priced at $990. Readers may download an excerpt of this report HERE!




Latin exports predicted to grow 21.4%

For The CAFTA Report

(Sept. 3,  2010) Latin American and Caribbean exports will grow 21.4 percent this year, jumping from -22.6% in 2009 and driven mainly by South American sales of prime materials, according to estimates of a new report released Thursday.

The study "Latin America and the Caribbean in the World Economy 2009-2010: A crisis generated in the centre and a recovery driven by the emerging economies" states that this boom is largely due to purchases from Asia, particularly China, and the normalization of United States demand.

Regional exports to China rose from -2.2percent in the first semester of 2009 to 44.8 percent during the same period this year.

However, there are significant differences within the region. Growth has been much greater in countries that export natural resources (agricultural, livestock and mining products), namely South American nations, while it has been slower in countries that import basic commodities and depend on tourism and remittances, such as Central American and the Caribbean economies. The report is by the Economic Commission for Latin America and the Caribbean

The differences per subregion are also significant, according to the study estimates: This year, exports from Mercosur are expected to increase 23.4 percent and those from Andean nations 29.5percent, but sales from the Central American Common Market will expand only 10.8 percent. Exports from Mexico, for example, will rise 16percent and from Panama 10.1 percent, but sales from Chile are estimated to grow 32.6 percent.

The most notable upswing from the worst period of the crisis in 2009 is expected in the Caribbean Community, whose exports are estimated to leap from -43.6 percent that year to 23.7 percent in 2010.

The report also examines trade developments in the region over the past decade, concluding that export growth during those ten years was slower than in the 1990s and lower than in other developing regions, both in value and volume. However, the region took two different routes during that time: South America doubled export growth, while in Mexico and Central America it dropped over 50 percent.

This disparity is largely due to the fact that the exports that most increased were natural resources from South America, at the expense of manufactured products and services with varying degrees of technological content. According to the report, the subregion has reverted to an export structure based on prime materials similar to that of 20 years ago.

While in 1999 natural resources made up 26.7 percent of total exports from the region, in 2009 they composed 38.8 percent of the total.

The difference in the growth rates of natural resource exports and manufactured goods realigned the relative weight of Mexico's exports, on the one hand, and sales from South America, on the other.

The participation of Mexico in the region's total exports fell from 40 percent in 2000 to 30 percent in 2009, while Brazil increased its participation from 13 percent to nearly 20 percent during the same period. Argentina, Chile, Colombia and Peru also expanded their participation in total exports based on the sale of natural resources.

The region has been unable to improve the quality of its international insertion and the expansion of natural resource-related sectors does not seem to have contributed sufficiently to the creation of new technological capacities, states the report.

"The diversification of exports, a strong boost to competitiveness and innovation and greater regional cooperation will allow Latin America and the Caribbean to improve the quality of its insertion in the global economy, close productivity gaps and capitalize the opportunities of international trade in order to grow with more equality," said Alicia Bárcena of the commission during the launching of the report at its headquarters in Chile.

Contact us here: Editor@TheCaftaReport.com




Insurance Telecom
Agriculture
Advertising
Labor laws
 Security
About us
Investments
Copyrights
Services
News feed
Business law
Classifieds
Contact Us