Latin America represents the smallest yet fastest growing global region in overall telecommunications services, and this holds true for Voice over Internet Protocol (VoIP) services as well.

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At a global level, IP telephony is one of the fastest growing segments in telecommunications. In 1999, IDC expected the global IP telephony market to grow from 2.7 billion minutes in 1999 to 135 billion in 2004, at a CAGR of 199 percent1. This figure does not include domestic long distance outside of the USA.

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In Latin America, IP telephony is estimated to grow from 184 million minutes of use in 1999 to over 45 billion in 2005 including international and domestic long distance2. Industry privatization and deregulation are fueling the growth of telecommunication services in the region.

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As it stands, domestic long distance in Latin America will represent about 75% of the IP telephony traffic with over 33 billion minutes in 20053. After 2001, new services such as conferencing, voice-enabled eCommerce and enhanced messaging services are expected to emerge as important market segments with a critical mass of users4.