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TELECOMMUNICATIONS SERVICE REVENUES IN LATIN AMERICA GROWING 15 PERCENT PER YEAR

 WALTHAM, Mass., June 22 /PRNewswire/ -- Latin America, incl Mexico, Central America, and South America, offers a variety of opportunities for communications equipment and service providers looking to expand internationally, according to a new study from Decision Resources, "Opportunities in Latin American Telecommunications Markets, 1992-1997." Argentina, Chile, Mexico, and Venezuela all are experiencing annual growth in their overall telecommunications sectors in excess of 15 percent, and are expected to be the primary targets of international telecommunication equipment vendors in 1993 and 1


Market Outlook
 The total Latin American telecommunications market amounted to $10.4 billion in 1987; this figure includes revenues for both services (basic, cellular, and enhanced) and equipment (transmission and switching, cellular, PBX and key systems, and other customer premises equipment (CPE) and terminals). In 1992, the market generated an estimated $25.3 billion in revenues. The study finds that as markets throughout the region continue to open, and as improved service, privatization, and economic growth stimulate additional demand, revenues for the total region are projected to approach $50 billion in 1997, for an overall compound annual growth rate (CAGR) of 14.5 percent.


Social and Political Factors
 Although the region is currently stronger economically than it has been in a decade, it remains somewhat volatile, and while the overall trends are very positive for telecommunications growth, the social and political forces that caused much of the havoc of the 1980s are not entirely dissipated. In part because income disparities remain extremely high, many Latin Americans continue to believe in authoritarian responses to economic problems. These responses reflect diverse mixtures of socialist ideals, as well as a desire by segments of the armed forces in some countries to retain their privileged positions or fulfill their self-appointed traditional missions of protecting and fostering national values against externally inspired subversion. Also, in some instances, unions still tend to protect the economic status quo of their members against changes that may be beneficial to broader segments of the population. As they prepare to exploit strong growth opportunities, business enterprises in the region should remain alert to the potential for periodic and possibly severe legal, regulatory, and political struggles that could be sparked by these and other powerful forces.


Contact Information for the Study
 "Opportunities in Latin American Telecommunications Markets, 1992- 1997" provides insight into the forces that are currently impacting telecommunications markets throughout Latin America by reviewing the existing infrastructure and service offerings; analyzing the major players in the telecommunications sector, and their past and emerging relationships; and examining the political, economic, regulatory, and industry environments in each major country. Forecasts are given for each major country by service and equipment type. Published in March 1993, the report is available from Decision Resources for $2,400. For more information or to purchase the report, call Jean Carbone at 617- 487-3737.
 -0- 6/22/93
 /CONTACT: Mary Ann Benedict, 617-487-3721, for Decision Resources/


CO: Decision Resources ST: Massachusetts IN: CPR SU:

CM -- NE002 -- 4404 06/22/93 09:01 EDT
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Publication:PR Newswire
Date:Jun 22, 1993
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