Data Communications Services Market Profits from Stable Growth Opportunities in Colombia

Consistent security policies implemented by the Colombian Government have resulted in assuring democracy and providing a stable environment for the growth of data communications services such as X.25, asynchronous transfer mode (ATM), frame relay, dedicated lines, and Internet Protocol (IP) in the country. Providers have utilized this growing platform to raise the market to a mature stage by employing proactive marketing measures and infrastructure deployment.

This Frost & Sullivan research service analyzes the advantages and disadvantages of the Colombia data communications services market, segmenting it into X.25, ATM, frame relay, dedicated lines, and IP. The study discusses the various trends and opportunities while providing in-depth market share analysis, forecasts, drivers, restraints, and revenue forecasts. It also enables companies to align their positioning strategies to benefit from the changing environment and obtain maximum return on investment.

Price Wars among Service Providers Open Up Cost-Effective Solutions for Businesses

By 2003, Government deregulation plans in the telecommunications industry had stimulated the entrance of a large number of participants in the market. In addition, the integration of information technology (IT) and telecommunications, strengthened through legislation, encouraged regional and international participation. Both these moves have heightened competition and augmented price wars by forcing service providers to lower prices.

"A cooperative approach amongst regional service providers is the major drive behind price reductions," says the analyst of this research service. "These emerging agreements focus on the availability of affordable access costs, thereby contributing to the expansion of the market offerings to a larger number of companies requiring international communications." Geographical expansion of local participants in Colombia combined with the use of alternative wireless and digital subscriber line (DSL) technologies is presenting companies with suitable cost-effective solutions.

IP Offers Key Technology for Medium-Sized Companies to Meet their Communications Requirements

Providers in Colombia are already speeding up traditional network depreciation and expect companies to massively jump onto the IP bandwagon, which is expected to provide the largest growth opportunities. Due to IP's simple deployment and cost effectiveness, this platform is progressively used to provide services oriented to the integration of multiple applications such as multimedia, Web hosting, and e-business. An important segment stimulating IP growth is that of late comers that directly enter the IP world and consist mainly of lower-end companies.

"IP is likely to replace ATM, especially in customers with increasing bandwidth requirements," opines the analyst. "X.25, ATM, and leased lines are experiencing slow growth since they have already attained 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 expected to maintain a specific market niche, especially in industry segments most sensitive to security concerns. Medium-level businesses are likely to increase demand for frame relay services, especially in the industrial, insurance, financial, oil, gas, and energy sectors.

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Accuracy on Current and Expected Market Volume and Technological Trends Ensure Sustained Growth Path

The data communications services market in Colombia has managed to reach a mature development stage over the past decade. This has happened as a result of the intense activity of service providers not only in terms of infrastructure deployment but more importantly in proactive market actions (involving product, pricing, marketing, actions, partnerships, etc.). However, the key to a sustained growth path greatly stems from a thorough understanding of market dynamics by identifying the main factors that will influence and motor market evolution in the years to come. This research service provides a deep insight of the current market configuration as well as a precise assessment on how the technological trends identified in the short, medium and long term will have a direct impact on the significant changes expected in the services breakout for the upcoming years.

IP Technology Implies Start of a New Era and Offer Tremendous Growth Opportunities

Few doubts are left concerning the tremendous potential on the use of IP technologies to make the full convergence concept come true. Nonetheless, some challenges remain in the Colombian data communications market, stemming from regulatory restrictions as well as the snapshot of vast network layouts locked in by market leaders. This research service explores the diverse windows of opportunities available for entrant and second tier participants in applying IP technologies and applications that would help them get the most out of customer value. Furthermore, the analysis also focuses on the overall market and technological trends that will aid position IP services as the best cost effective solution to selected target markets.

Demand Analysis to Assess and Exploit Unmet Customer Needs

While legacy platforms have been the historical response from service providers to early adopters of data communications solutions in Colombia, nowadays the addressable appears considerably saturated in upper business segment and therefore the competitive participants have to sharpen their strategies to capture untapped market sectors. The solid understanding of the market has made it possible for Frost and Sullivan to make a comprehensive assessment of the actual potential through an extensive addressable market analysis, covering both saturation points within top corporate, medium enterprise and small companies segments as well as an insightful vertical market assessment. This will prove to be an excellent marketing tool highlighting the market clutter and the positioning gaps that wait to be exploited.

Expert Frost & Sullivan analysts thoroughly examine the following sectors in this research:

By business segment:

• Top corporations
• Medium enterprises
• Small companies

By vertical market:

• Services
• Financial
• Education/ healthcare
• Energy/ oil/ gas
• Manufacturing
• Retail

The following technologies are covered in this research:

• X.25: The public switched data network (PSDN) is a public shared network service used only for the transmission of data traffic. PSDN usually operates to an industry standard called X.25.
• Asynchronous Transfer Mode (ATM): ATM is a high performance switching and multiplexing technology. This technology allocates specific amounts of bandwidth for specific amounts of time, thus able to transport voice, video, data and multimedia over the same virtual circuit.
• Frame relay: It is developed primarily for the efficient transport of unpredictable, intermittent, or "bursty" data, not ideal for voice or video transmission, which requires a steady flow of transmissions. By removing some of the extensive error-correction features associated with X.2., frame relay puts data in a variable-size unit called a frame and leaves any necessary error correction (retransmission of data) up to the end-points, speeding up overall data transmission.
• Dedicated lines: A dedicated line is a telecommunications path between two points that is available 24 hours a day for use by a designated user (individual or company). It is not shared in common among multiple users as dial-up lines are.
• Internet protocol (IP): IP is a "connection-less" protocol, which means that there is no continuing connection between the end points that are communicating. Each packet that travels through the Internet is treated as an independent unit of data without any relation to any other unit of data. Within the IP scenario, this study covers the IP access/links contracted by companies as a service, regardless of the IP applications being used or the different technologies used for IP applications. The following definitions are provided related to the following concepts behind IP.

• Detailed insights into the Colombian data communications services markets
• Drivers, restraints, challenges, and strategic recommendations
• Identification and analysis of top industry participants and competitive factors
• Market forecasts and opportunity analysis
• Aggregate industry revenues

Chapter 1

• Data communications services market: market drivers ranked in order of impact (Colombia), 2001-2008
• Data communications services market: market restraints ranked in order of impact (Colombia), 2001-2008

Chapter 2

• Data communications services market: total market figures (Colombia), 2001-2008
• Data communications services market: addressable market (Colombia), 2003
• Data communications services market: current and forecast revenues by service type (Colombia), 2001-2008
• Data communications services market: current and forecast subscribers (Colombia), 2001-2008
• Data communications services market: average pricing levels by service type (Colombia), 2004
• Data communications services market: average monthly revenue per subscriber by service type (Colombia), 2001-2008
• Data communications services market: bandwidth capacity contracted by service type (Colombia), 2001-2008

Chapter 3

• Data communications services market: competitive structure (Colombia), 2004
• Data communications services market: competitor description--AT&T Colombia (Telmex) (Colombia), 2003
• Data communications services market: competitive position and potential--AT&T Colombia (Telmex) (Colombia), 2004
• Data communications services market: competitor description--Colombia Telecomunicaciones (Colombia), 2003
• Data communications services market: competitive position and potential--Colombia Telecomunicaciones (Colombia), 2004
• Data communications services market: competitor description--Comsat (Colombia), 2003
• Data communications services market: competitive position and potential--Comsat (Colombia), 2004
• Data communications services market: competitor description--EPM/Emtelco (Multinet) (Colombia), 2003
• Data communications services market: competitive position and potential--EPM/Emtelco (Multinet) (Colombia), 2004
• Data communications services market: competitor description--ETB (Colombia), 2003
• Data communications services market: competitive position and potential--ETB (Colombia), 2004
• Data communications services market: competitor description--Impsat (Colombia), 2003
• Data communications services market: competitive position and potential--Impsat (Colombia), 2004
• Data communications services market: competitor description--Telefonica Data (Colombia), 2003
• Data communications services market: competitive position and potential--Telefonica Data (Colombia), 2004
• Data communications services market: product analysis (Colombia),