Telecom hotel and data storage real estate opportunities in Chile and Argentina

Abstract

Telecommunication deregulation and the Internet revolution have created the need for two new types of real estate, the telecom hotel and the data storage center. Similar forces are at work in much of Latin America. This thesis explains how the changing telecommunication industry and Internet have created demand for new real estate types and explores to what extent similar developments will create opportunities for telecom hotel and data storage facility development in Chile and Argentina. Deregulation of the telecommunications industry is a reality to varying degrees in both Chile and Argentina, although in both countries the local telecom incumbents have greater market control than their U.S. counterparts. This will limit telecom hotel development opportunities in those countries. Data storage center development depends primarily on levels of Internet activity and in both countries such activity is growing rapidly, necessitating data storage center development.