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2013 Latin America - Fixed-line, Internet and Broadband Statistics (tables only)

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Last updated: 6 Mar 2013 Update History

Report Status: Archived

Report Pages: 185

Analyst: Lucia Bibolini

Publication Overview

This Latin America - Fixed-line, Internet and Broadband Statistics report provides 329 tables and 78 charts illustrating the fixed-line, Internet and broadband statistics for Latin America and the Caribbean (LAC), both for individual countries and the region as a whole. Although very brief summaries are given in some chapters, the original documents should be accessed for full descriptions and commentary.

Reserachers: Lucia Bibolini, Henry Lancaster
Current publication date:- March 2013 (9th Edtion)

Executive Summary

Weak competition and insufficient bandwidth push up broadband prices in Latin America

Competition

Most telecoms markets across Central American and the Caribbean have been liberalised, with the notable exception of Cuba and some remaining instances where the state has retained a significant interest in the incumbent operator. New entrants using VoIP, wireless technologies, or triple play solutions are attracting a growing number of subscribers, but their market share remains comparatively small. Almost invariably, the incumbents continue to dominate the fixed line industry. Alternative telcos have been able to establish themselves in a number of smaller markets where poor penetration of services and small populations provide limited potential for growth. Nevertheless, in the Caribbean the key players LIME and Digicel have shown renewed commitment, maintaining investment and engaging in M&A activity in recent quarters to consolidate their interests in the region.

Wholesale

In the broadband sector, most incumbents have secured a virtual monopoly in the delivery of ADSL access. The only competition is across technologies, from cable modem and mobile broadband. Local Loop Unbundling (LLU) is rare in this region, and wholesale activity not very well developed. The concern governments face is the shortage of fixed line infrastructure, tied to the fear that operators will cease to invest in their network if they are forced to unbundle their local loop or lower wholesale prices. Nevertheless, change is on the horizon: the region’s largest market, Brazil, approved LLU regulations in late 2012.

International connectivity

All of Latin America suffers from insufficient international connectivity, both between countries and with the rest of the world, as submarine cables are inadequate to meet the escalating need for bandwidth. This has pushed up broadband prices. In Bolivia, the most expensive country for broadband, 1Mb/s connection costs a staggering 55% of GDP per capita. In other LAC markets, the cost ranges between 1.3% (Uruguay) and 19.5% (Nicaragua) of GDP per capita – while in countries such as Spain and France, 1Mb/s connection costs 0.18% and 0.06% of GDP per capita respectively.

Developments, however, have been witnessed in submarine cable activity, with evidence that the ALBA-1 cable from Venezuela to Cuba is now carrying traffic from Cuba, so ending that country’s reliance on satellites for international comms and internet traffic. Similarly, América Móvil recently contracted for the 100Gb/s AMX-1 submarine cable linking Latin America and the US, with landings in Colombia, Brazil, the Dominican Republic, Mexico, Puerto Rico and Guatemala.

Teledensity

As in the rest of the world, consumers in LAC are turning increasingly towards mobile solutions and away from the traditional telephone. Despite a low 19% teledensity (in most Western European countries teledensity is between 40% and 60%), LAC’s fixed-line market has been stagnant since 2001, while the number of mobile phones continues to grow.

Broadband

LAC’s estimated fixed broadband penetration was 8.4% at end-2012, slightly below the world average of 9.2% but ahead of other developing regions such as South Asia and Africa.

Hurdles in the Latin American broadband market include:

  • weak competition and insufficient bandwidth (hence, expensive and/or slow services);
  • inadequate fixed-line infrastructure (hence, service unavailability in many areas);
  • low PC penetration, poverty, and unequal income distribution (hence, limited demand).

On the positive side, bandwidth has been increasing in most countries, leading to higher speeds and lower prices, while regulators seek measures to promote competition. Given the region’s general economic indicators, there is ample room for expansion.

Data in this report is the latest available at the time of preparation and may not be for the current year.

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