Electronic Commerce
There are currently 18 ISPs in Bolivia with over 40,000 users. Internet usage is concentrated among the three largest cities La Paz, Santa Cruz, and Cochabamba. Over 70% of all Internet ISPs and 90% of all users reside in these three cities.
While many companies have websites in Bolivia, e-commerce per se has not really taken off for several reasons. First as stated before is the lack of service and access to data lines. Second, credit and credit cards are practically unheard of in Bolivia making online purchasing difficult. Third, the roadway system in Bolivia is still far from adequate and the postal service is not trusted. Thus online purchasing will not be possible until dependable shipping and postal service can be established.
The Bolivian telephone system will complete its privatization efforts in November 2001. This will open up the market for new service providers and additional services for Bolivians. Unfortunately, one of the key roadblocks to progress is the poor telecommunications infrastructure in Bolivia. The majority of the local phone service is provided by electric cooperatives that have not had the capital to invest in technology upgrades and new services. While 2001 bodes well for the Bolivian telecommunications industry, a key breakthrough has bee the advent of wireless technology.
Bolivia is an excellent candidate for wireless and mobile services. Cellular and mobile phones have tripled in usage in the past three years. Wireless Internet access will most likely be the best path to the Internet for most Bolivians. There were a total of 372,800 cellular subscribers in Bolivia in 1999.
