The Net_s Frontera Nueva?

The portal giants are heading south. Recently announced pushes by Microsoft and Lycos into Latin America are only the beginning of what_s sure to be a heated battle over this largely untapped market. Most major portals have focused their international efforts on Europe and to some extent Asia, where Internet adoption has already made headway. The Internet has been slow to develop in Latin America, partly because state-run telco monopolies have meant shoddy service and high rates. But as privatization efforts sweep the region, the number of Internet users in Latin America is expected to rise from 4.8 million in 1998 to about 7 million by the end of this year, reaching 19 million in 2003, according to market research firm IDC. Until now, moves by the big portals have been tentative. AOL launched its Brazil site a few months ago, and Yahoo has launched sites in Brazil and Mexico. Both companies plan to expand to additional countries next year. But two weeks ago Microsoft joined hands with Mexico_s largest telecommunications company, Telefonos de Mexico, known as Telmex, in a joint venture that will create a Spanish-language portal for all of Latin America early next year. Eventually, as much as 85 percent to 90 percent of content will be localized for specific countries, according to Mauricio Santillan, VP for Microsoft Latin America. Microsoft is also planning to work with cable TV operator Globo Cabo on a new portal for Brazil. MSN_s existing sites for Brazil, Mexico and Latin America offer limited content, as well as promotions for Microsoft products, e-mail and messaging services. Meanwhile, Lycos has already taken the plunge, unveiling Lycos.com and Tripod community sites for six countries: Brazil, Mexico, Argentina, Chile, Peru and Venezuela.