Saturday, February 10, 2001
Mexico Slowly Getting Wired
According to the recently released eLatin America Report,
Mexico is second among all Latin American countries in
internet users with 1.5 million. However, future internet
growth will be slowed by poverty and infrastructure development
constraints within the technology sector.
The report reveals that although 6.4 million Mexicans will
be actively using the internet by 2004, the internet penetration
rate will remain in single digits for the next few years
-- rising from 2.2% in 2000 to 8.6% in 2004. Similarly, Mexico's
share of the region's internet market will remain unchanged
through 2004, hovering close to 15%.
"Mexico's poorly developed infrastructure is a major
impediment to growth of its internet market," said Noah
Elkin, eMarketer senior analyst. "Poverty and inequality
remain significant barriers to internet growth in Mexico."
With its GDP (Gross Domestic Product) per capita of $5,452
(50% higher than Brazil's) and a population of more than
100 million, Mexico represents the second largest internet
market in the region behind Brazil. Mexico is one of three
countries, along with Brazil and Argentina, which account
for approximately 65% of the region's 9.9 million internet
users, with Brazil claiming 3.9 million, Mexico with 1.5
million and Argentina with 1 million.
Like Brazil, Mexico's population is predominantly urban,
with 74% of its people residing in cities. Approximately
43% of Mexicans live on a subsistence income, while 20% of
the population controls nearly 60% of the country's wealth.
Key Report findings about Mexico:
- With a GDP of $866 billion, Mexico has the second largest
economy in Latin America and is entering its sixth year
of economic expansion.
- Uneven income distribution, combined with a poorly developed,
overburdened telecommunications infrastructure, has resulted
in a low internet penetration rate of 2.2%.
- The internet penetration rate will grow to 8.6% by 2004
as telephone operators complete their infrastructure upgrades.
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