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In-Stat Study Notes Telecom Focus On U.S. Ethnic Communities

June 27, 2005

It's no secret to anyone who works in the realm of marketing that the U.S.'s growing Hispanic community is now, and will continue to become, a hot commodity. Rising disposable income, increasing rates of broadband adoption and a preference to do business in their own language have all added up to make U.S. Hispanics one of the most targeted groups by the marketing and advertising communities.

The increasing success of niche-market teleservices providers, such as Texas-based Hispanic Teleservices Corporation (, attests to this trend. HTC bases its call centers in Monterrey, Mexico and services the U.S. Spanish-speaking population with teams of college-educated, bilingual agents.

A recent In-Stat report tallies the potential of U.S. minority markets, particularly the potential of the telecom industry in broaching these markets.

The full release is below.


Telecom Marketing to Hispanics Part of New Ethnic Focus

SCOTTSDALE, Ariz. --(Business Wire)-- June 27, 2005 -- Telecom providers are marketing more aggressively to ethnic groups, reports In-Stat ( Examples of this include Qwest's low-cost long distance calling plans for Mexico, and Sprint's launch of Movida Communications, both of which target the more than 42 million Hispanics in the United States. Many of the current ethnic marketing initiatives tend to focus on the Hispanic market, as this is the largest ethnic population, with more than 43 million individuals in 2005.

"In-Stat has also found that some ethnic groups react better to specific types of advertising and marketing, and are influenced by different sources," said Amy Cravens, In-Stat analyst. "In better understanding these differences, providers may be able to more fully realize the potential subscribership of what may be undersubscribing ethnic groups."

A recent report by In-Stat found the following:

-- Although decreases in revenues from wireline services are expected from subscribers of all ethnicities, the lowest declines are expected from Hispanic and Asian/Pacific Islander subscribers due to their population growth.

-- By 2009, more than 40.4 million whites are expected to subscribe to broadband. The number of Hispanic and Asian/Pacific Islander subscribers is expected to grow at faster rates, however.

-- African-Americans are expected this year to account for the second-greatest percentage of dial-up subscribers, nearly 6.0 million. This number is expected to fall to 4.3 million by 2009.

The report, "Culture Shock: Trends in Ethnic Marketing" (#IN0502202IA), covers the results of the "Consumer Telecom Survey, 2005" research study. This report presents data from structured telephone interviews with consumers across the United States regarding their expected telecommunication service usage for 2005 and in future years.

For more information on this report, please visit or contact Erin McKeighan at 480-609-4551 or The report price is $3,495.

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