Investments in Latin American broadband market yield growth

22 Feb 2012

Operators’ increasing investments in cable and fibre broadband infrastructure have widened the availability of and demand for broadband services in Latin America. According to TeleGeography’s GlobalComms Database, Chile’s broadband market has seen increased popularity of high speed packages in particular. In Q3 2011, 63% of Chile’s broadband customers subscribed to connections with maximum download speeds of greater than 2Mbps, up from 34% in Q3 2010.

Similarly, between Q3 2009 and Q3 2011, Chile’s DSL subscriptions increased by 15%, while cable subscriptions grew by 32%. Chile’s customer-focused regulatory environment and highly competitive broadband market have both played a role in the country’s successful migration to faster networks: Chilean regulators Subtel and TDLC enforce net neutrality, price, and competition regulations, while three of the largest companies in the world — America Movil, Telefonica and Liberty Global — all operate high speed networks in the country.

Another contributing factor is the national and regional prioritisation of broadband industry development. Latin America’s broadband penetration was about 3% at Q3 2004 — less than a third of the global average of 10%. However, by Q3 2011, Latin American broadband penetration had reached 29%, while the global average was just over 31%.

‘In addition to subsidising infrastructure rollouts in its own rural areas, the Chilean government is working with neighbouring countries to increase broadband connectivity throughout the region,’ said TeleGeography analyst Mark Gibson. ‘Programmes like Todo Chile Communicado, ‘Golden Triangle,’ and UNASUR are helping Latin America steadily close the penetration gap with every passing year.’

TeleGeography’s GlobalComms Database is the most complete source of data about the wireless, broadband and fixed line telecom markets, covering 171 countries and over 1,400 service providers.

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