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Internet and IT ServicesOverviewReturn to topTRENDS IN THE INTERNET MARKETS2008 2009 2010 (estimated)Total Market Size 1,804 2,074 4,989Total Local Production 1,804 2,074 4,989Figures are in millions of U.S. dollars. Source: Total Market Size figures – Selected figures. All otherfigures are estimates.TRENDS IN THE IT SERVICES2008 2009 2010 (estimated)Total Market Size 3,600 4,140 5,382Total Local Production 2,340 2,691 3,498Total Exports 720 828 1,076Total Imports 540 621 807Imports from the U.S. 216 250 325Figures are in millions of U.S. dollars. Source: Same as above.The Mexican Internet Association, AMPICI, has reported additional growth in the use ofInternet in their May 2009 study. At the end of the year, the estimated number of Internetusers reached 28 million with a penetration rate of people 6 years or older over 30%.Internet users in Mexico have grown in double digits. 2005-2006: 17%, 2006-2007: 18%,and 2007-2008: 16%. This growth translates into an increasing infrastructure ofconnected PCs, 93% of Broadband Internet connectivity, and a diverse population ofInternet users. All demographic and socio-economic sectors are participating in Mexico’sdigital revolution. Men, women, children, and adults use Internet for personal andprofessional purposes. Internet is mainly used as a tool for communication andcollaboration. The main uses are sending emails, chat rooms, instant messaging, news,video gaming, music downloads, and increasingly social networks. Access points vary,but half of the users access the net at home, followed by 34% in public places such asInternet Cafes, and lastly 19% in the office and 11% in schools. A full report on Internetinfrastructure and user habits is available at the Mexican Internet Association’s website(in Spanish only). Please visit: www.amipci.org.mx/estudiosThe growth of broadband infrastructure in the last 18 months has been phenomenal.ISPs, Cable TV operators and wireless carriers have invested heavily in modernizingtheir networks in order to deliver higher broadband speeds through Fiber-To-The-Home(FTTH) and third generation, 3G, networks, and WiMAX deployments. Today, residentialcustomers can contract Internet speeds from 1 Mbps to 10 Mbps and even 50 Mbps.Fiber networks are bringing more capacity to users, however, pricing is still higher thanin other countries. A 5 Mbps connection in Telmex is $77. A Cable TV Triple PlayPackage with 2 Mbps and 200 channels is $88 with Cablevisión of Monterrey.Cablevisión in Mexico City offers a Triple Play Package with 2 Mbps and 250 channelsfor about $66.Enterprise connectivity is also becoming increasingly essential in business in Mexico asmore IT Services firms are developing the small, medium and corporate as well asgovernment sectors. In 2009 the IT industry began a move to outsourcing services,cloud computing, and virtualization. Corporate users and governments are deciding to