But these challenges aren't stopping some of the biggest names in Internet access from venturing down south. The number of Net surfers in Latin America is currently 7 million people, out of a population of 460 million. International Data Corp. And IDC estimates that the number could grow to 19 million surfers by the end of 2000. Although foreign ISPs like AOL are making aggressive moves into the region, don't expect them to build infrastructure. Instead, they are buying local ISPs and waiting for the backbone to emerge.
Newcomers also face a big challenge in battling incumbents.
The regional telcos have been slow to move into the ISP business, although these companies do have some key advantages. The regulatory environment in Latin America is fragmented in a way that North America and Europe are not, and only the established players know how to play the game. The regulatory environment and poor infrastructure are tough problems. And the bandwidth constraints are a problem, not just at the ISP level, which is slowly coming around, but for the individual users. Nevertheless, Coen is optimistic that these constraints are going away, pointing out that the fastest growth in high-end PC shipments is happening in the region and that infrastructure is improving.