Latin American Web Growth Exceeds Expectations 17/6/00 The recently released eLatin America Report from eMarketer predicts that the number of active adult Internet users in Latin America will total 8 million in 2000, more than double from the previous year. This number is projected to increase to 19 million by 2003. The report also reveals that active Latin American Internet users in the region will equal 5% of the 372 million users worldwide by 2003. The report indicates that although the Latin American user base may be large enough to create a lucrative market, it will not challenge the North American or European regions in the near future. Total e-commerce revenues are forecast to grow from US$3.2 billion in 2000 to US$15 billion in 2003. Despite these findings, the report indicates that Latin America will only amount to a mere 1% of the world's US$1.4 trillion in e-commerce revenue by 2003. According to Nevin Cohen, Senior Analyst, "In Latin America, only 10% to 15% of the population have the resources to actively use the Internet and shop online. We find these Latin American `Internet elite' are educated, cosmopolitan and technologically advanced users." Key findings of the report include: Internet capacity is not evenly spread out throughout the region. Brazil, Argentina and Mexico, comprise more than 80% of the region's 8 million Internet users while Brazil accounts for 60% of e-commerce revenues alone. 87% of Latin America's e-commerce activity will come from business to business (B2B) transactions, not business to consumer (B2C) sales. With only 18% of Brazilians and 22% of Mexicans holding credit cards, B2C commerce has been limited. Moreover, tariffs and unreliable shipping logistics can make intra-Latin American purchases difficult and expensive. Nearly 75% of Latin American online buyers shop at US based Internet sites. The Internet infrastructure is underdeveloped throughout much of the region. There are only 21 telephones per one hundred people in Argentina, 11 per hundred in Brazil and 10 per hundred in Mexico. The population of Latin America is much younger than that of the US, Europe or Japan. As they mature, Latin American youth are more likely to seek out the Internet for information, entertainment and shopping than their parents or grandparents. Internet access costs remain a significant barrier for most users. The availability of new free ISPs helps, but Latin Americans still dial in and pay for their telephone calls by the minute. Due to high telephone costs, Internet users ration their online time and a large part of the population is unable to afford connecting at all. In an environment dominated by the English language (3/4 of web pages), increased local content is essential to widen Internet use in Latin America.