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IP Solutions to Boost Data Communications Services Market Growth in the Small and Medium Enterprises Segment

Posted on: Tuesday, 27 June 2006, 09:00 CDT

PALO ALTO, Calif., June 27 /PRNewswire/ -- With the saturation of large and multinational segments, small and medium enterprises (SMEs) have become the target segment for the data communications services market in Mexico. The introduction of IP-based services, which are more affordable, is increasing the penetration in this segment.

Frost & Sullivan (http://www.commapps.frost.com/ ) reveals that the Mexican Data Communications Services Market earned revenues of $1.20 billion in 2005 and estimates this to reach $1.82 billion in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Mexican Data Communications Services, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com with your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the overview by e-mail upon receipt of the above information.

The data communications services market is one of the most rapidly growing business sectors in the Mexican telecommunications industry. The market, which was until recently monopolized, has been witnessing healthy competition with the entry of new participants.

"The growing number of vendors helps meet the demand from U.S. and Canadian companies that have established interests in Mexico, since the signing of the North American Free Trade Agreement (NAFTA), and wish to acquire data communications services," notes Frost & Sullivan Research Analyst Victor Casiano.

Currently, market participants are offering various services such as X.25, Internet protocol virtual private network (IP VPNs), frame relay, VPN and dedicated lines. Larger companies are increasingly shifting to IP-based services that provide vast bandwidth capacity for a variety of services including Internet access and Web-based services.

"IP provides companies with an adaptable method of communicating data," states Casiano. "Migration to IP platforms is easier and allows companies right from multinationals to small enterprises to adopt these solutions."

However, this migration may impact the operators' revenues, especially, as the IP allows bundling of applications on a single service.

"Providers could benefit by offering high quality services at affordable prices to potential SMEs in the suburban and rural areas," notes Casiano. "They could provide complete solutions with value-added services and support, while being aware that SME clients may not possess in-depth knowledge about the services."

IP's ability to provide its users with multiple solutions at low costs expects to help sustain the data communications services market growth.

Mexican Data Communications Services Market is part of the Communications Services subscription service, which also includes research on the Latin America VoIP services market. This study provides an overview of the current data communications market in Mexico and details market opportunities and industry trends evaluated through extensive interviews with market participants. Analyst interviews and executive summaries are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/ .

Mexican Data Communications Services Market F724-63 Contact: Mireya Castilla Corporate Communications - North America P: 210.247.3830 F: 210.348.1003 E: mireya.castilla@frost.com Srividhya Parthasarathy - Europe Corporate Communications P: + 91 44 42044668 E: sparthasarathy@frost.com Sarah Lourdes Corporate Communications - Asia Pacific P: +603 6204 5878 F: +603 6201 7402 E: sarah.lourdes@frost.com Sharmin Jassal Corporate Communications - Australia P: +61 2 8247 8900 F: +61 2 9252 8066 E: sharmin.jassal@frost.com http://www.frost.com/

Keywords for this press release: data communications services, Mexico, internet protocol, IP, X.25, virtual private network, VPN, frame relay, dedicated lines, bandwidth, small- and medium- enterprise, SME, research, information, market, trends, technology, service, forecast, market share

Frost & Sullivan

CONTACT: Mireya Castilla, Corporate Communications - North America,+1-210-247-3830, or fax, +1-210-348-1003, or mireya.castilla@frost.com , orSrividhya Parthasarathy - Europe, Corporate Communications, +91-44-42044668,or sparthasarathy@frost.com , or Sarah Lourdes, Corporate Communications -Asia Pacific, +603-6204-5878, or fax, +603-6201-7402, orsarah.lourdes@frost.com , or Sharmin Jassal, Corporate Communications -Australia, +61-2-8247-8900, or fax, +61-2-9252-8066, orsharmin.jassal@frost.com , all of Frost & Sullivan

Web site: http://www.frost.com/http://www.commapps.frost.com/

Source: PRNewswire

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