TITLE: Internet Fever. 
TITLE, EXTENDED: Despite many obstacles for Internet access in Latin 
                 America, about 7-10 mil people do have Internet access, 
                 with estimates suggesting the total reaching 34 mil by the 
                 end of the decade
SOURCE: Latin Trade; 6(8):61+, August 1998.
                  ISSN: 1087-0857
LANGUAGE: English
COMPANY: UNIVERSE ONLINE
KEY TERMS: 
  On-line service providers;   Information services;   Information industry;   
 Online data processing;   Online services;   Brazil;   Latin America;   South 
 & Central America;   Market information;   Industry forecasts;   Market size; 
 Trends;   Users
ABSTRACT: 
  Estimates are that 7-10 mil Latin Americans have Internet access, with the 
 number rising rapidly. Brazil accounts for almost half of the region's 
 Internet activity, home to over 500 Internet Service Providers (ISPs), 
 with the largest one, Universe OnLine, receiving 5.8 mil hits/day from 
 users. According to a survey by Nazca Saatchi & Saatchi, the region is 
 coming online at twice the rate as the rest of the world and will number 
 34 mil people online by the end of the decade. The region faces many 
 obstacles to Internet access, including poor dial-up connections, lack of 
 local content, access favored towards the affluent, and many low income 
 residents who cannot afford either a computer or pay-per-minute phone 
 service. Most Latin Americans that are online use it for email and are not 
 willing to wait the possible 10-15 minutes for their computer to receive 
 an Internet page. Full text discusses Internet usage in Latin America in 
 more detail.
FULL TEXT: 
  It may he neither perfect nor widespread, but Latin Americans believe that
 going online is the key to their future.
  
 BY DOUGLASS STINSON
  
 CHARLY ALBERTI IS BEST known as the drummer of Argentine rock band Soda
 Stereo. But since the band's breakup last year, Alberti is on to a new
 gig. His Web site, Cybrel Argentina, allows people to sample his music
 over the Internet, take a hand in composing new songs or converse about
 music in chatrooms.
  
 Cybrel plays to a potentially much larger audience than Alberti's former
 band could ever pack into a stadium. By several estimates, over 7 million
 Latin Americans now access the Internet, some say the figure reaches 10
 million, and the ranks are swelling at a mega pace. The heady combination
 of a wealth of data a few clicks away over the World Wide Web and
 communication made fast and easy via email have lured the region online,
 with rich and poor alike seeing the Internet as the best way to break open
 the traditional information bottleneck.
  
 photo omitted
  
 Brazil accounts for nearly half the region's electronic activity, with
 more than 500 Internet Service Providers (ISPs) offering access. The
 largest of them, Universe OnLine, a joint venture owned by Brazil's Abril
 and Folha media groups, receives 5.8 million hits a day from users, making
 it one of the world's busiest non-English language sites. A survey by
 Nazca Saatchi & Saatchi, the Latin American arm of the British advertising
 agency, shows the region's inhabitants coming online at twice the rate of
 the rest of the world. Further, the company predicts that 34 million
 people in the region will have entered the electronic arena by the end of
 the decade.
  
 Regardless of the challenges presented by poor dial-up connections and
 access skewed toward the affluent, the idea of the information highway has
 won over the hearts and minds of Latin America. "Internet brought a new
 dimension to the information age," says Luiz Costa-curta, vice president
 of Brazilian consulting firm IMVC, who now spends an hour a day online,
 and makes four out of five contacts with clients via email. "It brings it
 to life and makes sense even for those who do not like technology."
  
 Fernando Espuelas would agree. He and a partner founded Star Media in 1996
 as the first Internet content company focusing on Latin America. The lore
 among his employees has it that Espuelas knew the region thirsted for what
 the Internet had to offer from his experience showing off the World Wide
 Web at shopping malls in his former job at AT&T. Espuelas marvelled that
 people would wait more than two hours for a short hands-on demonstration.
 As the story goes, one old man waited for hours, had his turn, and
 immediately got back in line to do it again. Star Media now boasts 500,000
 users a month and a host of advertisers paying to reach them. "People like
 the lack of boundaries and the opportunities to meet people from across
 the region," says Star Media's development head Tracy Leeds. "Latin
 Americans are fantastic communicators. They love to talk. Getting our
 audience to participate in chat rooms and on billboards has not been a
 problem."
  
 What has been a problem is the lack of fresh, compelling Web sites that
 draw users back time and time again. Latin America is not by nature an
 information culture, and that is evident on the Internet. Many Web sites
 in the region are stale and boring, filled with information deemed too
 useless to be valuable, and thus safe to post online, in many ways a
 reflection of the prevailing by-rote education system. "The World Wide Web
 business here is very immature, heavily oriented toward static pages,"
 says Carlos Ausset, the head of Chilean computer-based training company
 Comunicacion Interactiva. "Unfortunately, too many clients know too
 little, and can't distinguish. They are sold a pretty Web page, but one
 that really doesn't have much to it." Adds Star Media's Leeds, "We see
 competitors making the same mistakes that were made in the early days in
 the United States: static news, static sites."
  
 One of the biggest obstacles to massive Internet aculturation is getting
 the majority of the population online. While marketers say that the
 Internet has become a major motivation in almost all consumer computer
 purchases this year, few in the region can afford to buy a PC. "I get
 really nervous when people say 'Internet in Latin America,'" says Carlos
 Perry, head of Latin America research for U.S.-based Yankee Group. "A
 large segment of the population will never have a PC."
  
 Pay-per-minute phone service is another cost barrier. Such fees limit the
 ability of many middle-income families that do own computers to stay
 connected to the Internet through the phone system for any length of time.
 Most multinationals and the region's largest companies use dedicated
 connections, but other businesses are wary of widening access to
 employees, too. "The pay-per-minute issue is especially big for companies
 trying to control technology costs," says Annika Alford, Internet analyst
 for U.S. researcher IDC. "There is no revamping of business structures to
 incorporate the Internet; instead, they are trying to complement existing
 activities and access is much more targeted."
  
 graph omitted
  
 There have been some unique solutions. Chile's CTC and Peruvian ISP Red
 Cientifica Peruana offer Internet kiosks, open access terminals from which
 computerless users can sign onto the Internet on a cost-per-use basis.
 Also, a majority of traffic comes from terminals tied into corporate or
 academic networks, most users' only option for reaching the Internet,
 regardless of what they do once online.
  
 But once they manage to hook up, Latin Americans are following similar
 usage patterns to those set by users in the United States. After
 connecting, email among friends and family is the first activity most
 attempt, followed by adopting email into daily routines at work and home.
 Later comes Websurfing and interactive pursuits such as participating in
 chatrooms and other online activities. "Surfing is not nearly important in
 Colombia as sending email," says Jason Aparicio, head of Internet services
 at Colombian ISP Colomsat. "People are not prepared to wait 10 or 15
 minutes while their computer receives a page from the Internet."
  
 Even in areas with speedier connections, the lack of local content drives
 many users into foreign territory in the quest for information. Argentine
 TV host Alejandro Marley is not uncommon among Web surfers: "I start with
 a Yahoo search for any entertainment guide and then I go to look at the
 Billboard pages to see the world rankings, then I go to Entertainment
 Weekly [a U.S. publication]. The Internet allows me to get the low-down,
 the latest news and gossip about artists."
  
 This is a niche that Star Media thinks it can exploit, even as it targets
 the upper 20th percentile of households by income. The company reckons
 that half these homes have computers, but of those, only 12% claim to be
 proficient in English, the de facto language of the World Wide Web. While
 major U.S. Web companies like Yahoo and Netscape are rushing to create
 "portals" or gateways through which users cross to other Web sites, Star
 Media wants to be the equivalent of a cul-de-sac. "We are the best of AOL
 and Yahoo for the Latin American market. We have deep content, but we are
 free on the Web," says Leeds. "There's really no reason to go anywhere
 else."
  
 That strategy is hardly kin to the freewheeling, open culture of the
 Internet. Nonetheless, it may be the sort of culture in which Latin
 Americans are more comfortable while they cut their online teeth. Shopping
 over the Internet is another area in which buyers are showing caution.
 Analysts point out that credit cards are relatively new in the region, let
 alone electronic commerce. Pizza Pizza, a Colombian restaurant, found out
 the hard way, receiving only three orders in a year of offering pizzas
 online. "It became apparent to us that most people were using the net to
 send email and find out information, but not to order things," says
 manager Clara Sanin.
  
 Sanin plans to refloat the scheme next year, and others think that such
 barriers will be quick to fall. "The consumer market and small business
 sales are ramping up very quickly," says Oscar Anzola, the Latin America
 head of U.S. technology firm 3Com. "People are starting to buy into the
 idea of buying online."
  
 photo omitted
  
 Red Cientifica director Jose Soriano has claimed that the Internet
 revolution will not be complete until his country's Quechua-speaking
 Indians can go online--in their native language--to transact for
 information on topics that interest them, such as high-altitude potato
 farming or prices of wool. Though that may be a long way off, Soriano
 routinely receives overwhelming applause at conferences when he states his
 goals.
  
 Such is Latin America's enthusiasm for the electronic revolution and the
 hopes for the region's emerging online presence. "There is a fever about
 the Internet," says Luis Anavitarte, analyst at U.S. research firm
 Dataquest. "Everyone is talking about it even if they don't know what it
 is."
  
 --With additional reporting by Steven Anderson in Santiago, Rupert Eden in
 Buenos Aires, Carlos Neve in Sao Paulo and Adam Thomson in Bogosa.
  
 Copyright 1998 Freedom Communications, Inc.
PUB. TYPE: Journal Article
PUB. COUNTRY: United States
 
  from the Business & Industry (R) database (C) 1998 Responsive Database 
 Services, Inc.
               
  
END OF RECORD

=================================

TITLE: Uneven growth of Internet hosts.
TITLE, EXTENDED: The number of Internet hosts worldwide rose 70% from 1/96 
                 to 1/97 and 1,230% from 1993 to 1996; number of hosts 
                 totaled 12,688 in Argentina and 77,148 in Brazil
SOURCE: Market Latin America; 6(6):3, June 1998.
                  ISSN: 1066-7024
LANGUAGE: English
KEY TERMS: 
  On-line service providers;   Information services;   Information industry;   
 Online data processing;   Online services;   Brazil;   Latin America;   South 
 & Central America;   World;   Market information;   Market size;   Users
FULL TEXT: 
  Explosive growth of Internet use in Latin America has motivated financial
 institutions and publications to put more information at the fingertips of
 market researchers, but the evolution of hosts has been much faster in
 some Latin American nations than others. While Peril and Brazil have
 experienced dramatic increases in the number of hosts, Ecuador, Mexico,
 and Venezuela have barely kept pace with the rest of the world.
  
 Large numbers of Internet hosts are springing up throughout the region to
 meet the increasing demand for on-line information. According to Network
 Wizards at [http://www.nw.com/], the number of hosts worldwide increased
 70 percent from January 1996 to January 1997, and a staggering 1,230
 percent from 1993 to 1996. It is expected that decreasing computer prices
 combined with improved service thanks to the breakup of telecommunications
 monopolies will spur continued growth of Internet use.
  
 As more Internet users gain access to more data, the need grows for
 products and services which somehow separate useful information from that
 which is not. Search engines identify numerous "relevant hosts" for almost
 any keyword. Sorting through the pages and recovering information has
 become a daunting task which is further complicated by hosts changing
 their location on the Web or disappearing altogether without notice. Among
 the most relevant sources of market-related information are the following.
  
 * Brazil: Banco Central do Brasil presents the publication Boletim on its
 Web site at [http://www.beb.gov.br/]. Boletim's extensive information on
 the Brazilian financial system and economy can be downloaded to Excel or
 Lotus worksheets.
  
 * Venezuela: The financial newspaper, El Universal, at [http://
 www.eluniversal.com/] offers free subscriptions and an engine to search
 several months' worth of archived papers.
  
 * Peru: Instituto National de Estadistica e Informatica, Peru's
 statistical organization, has current information on the Peruvian economy
 at [http://www.inei.gob.pe/].
  
 * Mexico: The Informacion Economica section of Banco de Mexico's site at
 [http://www.banxico.org.mx/] has a search engine for finding specific
 data.
  
 SOURCE: "Internet Growth in Latin America" (1997), Kimberly Kubali;
 telephone +1 (212) 250-8379; e-mail [kimberly.kubali@btalexbrown.com].
  
 INTERNET GROWING IN LATIN AMERICA
  
 Growth of Internet use in Latin America is reflected in the
 substantial number of Web site hosts now found in the region. The
 following is a breakdown by nation for 1997.
  
 Country                                         Number of hosts
  
 Argentina                                           12,688
 Brazil                                              77,148
 Chile                                               15,885
 Colombia                                             9,054
 Ecuador                                                590
 Mexico                                              29,840
 Peru                                                 5,192
 Venezuela                                            2,417
 Rest of the world                               16,146,000
  
 SOURCES: Network Wizards at  and CIA Handbook
 (1997).
  
  
 Copyright 1998 IBC USA Licensing, Inc
PUB. TYPE: Newsletter
PUB. COUNTRY: United States
 
  from the Business & Industry (R) database (C) 1998 Responsive Database 
 Services, Inc.
               
  
END OF RECORD

=================================

  
TITLE: INTERNET INCREASINGLY INFORMS, EMPOWERS ORDINARY LATIN 
                 AMERICANS.
TITLE, EXTENDED: Today, the Peruvian Scientific Network controls 75% of 
                 Peru's Internet connections, with 70,000 subscribers and 
                 500,000 hits to its Web site
SOURCE: Miami Herald [FL]; April 13, 1998.
                  ISSN: 0898-865X
LANGUAGE: English
KEY TERMS: 
  On-line service providers;   Information services;   Information industry;   
 Online data processing;   Online services;   Latin America;   Peru;   South & 
 Central America;   Market information;   Market share;   Users
FULL TEXT: 
  By Gerardo Reyes
  
 Apr. 13--As the hemisphere's leaders gather in Santiago to discuss the
 halting pace of economic integration, a silent revolution is uniting
 millions of Latin Americans at the speed of sound.
  
 It is the Internet revolution, a civilized union of common people,
 educational institutions and nongovernment foundations that have made
 Latin America the region where Internet use has grown fastest.
  
 At this week's Summit of the Americas, ministers and presidents who read
 regional proposals will find a good example of this effort of civilian
 achievements, communications integration and exchange of health-related
 information in Latin America: the Peruvian Scientific Network at http://
 ekeko.rcp.net.pe
  
 The network is a nonprofit, user-financed consortium of individual,
 academic, nongovernmental, business and public-sector entities like
 universities and private companies who built a virtual-reality city.
  
 Founded in 1991 by a Peruvian reporter with a computer and three modems,
 the network has become a busy center of information for Latin America.
  
 Today, the Peruvian Scientific Network controls 75 percent of Peru's
 Internet connections, with 70,000 subscribers and 500,000 hits to its Web
 site.
  
 Some services are offered by the network in Spanish, English and Quechua,
 an Indian language still spoken in Peru:
  
 In several Peruvian cities, the network has installed 27 public booths
 where users who don't have a computer -- or can't afford Internet service -
 - can access the network for $1 a day, e-mail service included.
  
 In the past two years, entrepreneurs have made 1,100 transactions with
 counterparts in 33 countries, according to network manager and founder
 Jose Soriano.
  
 Every time disaster strikes Latin America, the Peruvian Scientific Network
 Web page becomes a meeting place for foundations and rescuers.
  
 As in real cities, this virtual domain has an area that reflects the
 frustrations of Latin Americas. In the Web cellar, a visitor will find a
 flashing sign saying "In days, the monopoly will be over."
  
 The countdown refers to the date when telecommunications industries in
 Peru and other Latin American countries will be opened to competition.
  
 "The Internet has been very costly in Latin America partly because of the
 monopolies on telecommunications," Soriano said.
  
 The network is in the midst of a legal battle with Telefonica del Peru,
 which accuses it of providing services that are the exclusive domain of
 Telefonica.
  
 Copyright 1998 Miami Herald; provided by Knight-Ridder/Tribune Business
 News.
PUB. TYPE: Newspaper Article
PUB. COUNTRY: United States
 
  from the Business & Industry (R) database (C) 1998 Responsive Database 
 Services, Inc.
               
  
END OF RECORD

=================================

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