Last updated: 27 Feb 2013 Update History
Report Status: Archived
Report Pages: 93
Analyst: Lucia Bibolini
This report is essential reading for those needing high-level strategic information and objective analysis on the telecom sector in the Latin American and Caribbean region. It provides further information on:
Researcher:- Lucia Bibolini
Current publication date:- February 2013 (10th Edition)
BuddeComm’s annual publication, Latin American Telecoms, Mobile and Broadband Overview, provides a comprehensive overview of telecommunications in Latin America and the Caribbean (LAC), a region that includes some of the world’s most important emerging markets.
Most telecom markets in the LAC region have been both privatised and liberalised. Those that are still monopolies are striving towards an open market, but the privatisation trend has been reversed. Two countries (Venezuela and Bolivia) have renationalised their telecom incumbents, while other countries (Costa Rica, Ecuador, Honduras, Paraguay, Suriname, and Uruguay), where the main telco is still state-owned, are showing no interest in selling it to the private market.
All governments in Latin America have introduced some form of liberalisation, especially in the value-added and mobile markets. A few countries still have a monopoly in the local fixed-line telephony sector, notably Guyana, Paraguay, and Uruguay.
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 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.
Fixed broadband market
Estimated fixed broadband penetration in LAC 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. Nevertheless, Latin America has a long way to go before it can catch up with North America and Western Europe, where broadband penetration is over 30%.
Hurdles in the Latin American broadband market include:
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.
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.
Mobile broadband market
At end-2012, an estimated 10 million Brazilians used mobile broadband modems connected to their laptops or PCs (4.9% per capita penetration). Indeed, mobile broadband has become an important option for broadband services in the LAC region. The service is commonly used with either a USB modem that plugs into a computer, or with netbooks, notebooks, or laptops that have a built-in receiver.
Practically all LAC markets have operating UMTS networks with the exception of Belize, Cuba, Suriname, and a few Caribbean island nations. UMTS technologies in Latin America include HSPA, HSDPA, HSUPA, and HSPA+. Most operators use HSPDA to provide mobile broadband, multimedia downloads, mobile games, and video calling. Several companies also offer mobile TV.
Long Term Evolution (LTE) networks, dubbed 4G, have been deployed in four Latin American countries, and more are either planned or in trial. The region’s first LTE service was launched by AT&T in Puerto Rico, in November 2011. Another four companies followed suit in December 2011: Claro, also in Puerto Rico; Sky Telecom in Brazil; UNE/EPM in Colombia; and ANCEL in Uruguay.
Paul, May I congratulate you on a very successful and enjoyable afternoon with the Minister. In providing the roundtable discussions between government and industry, it highlighted the strong interest by stakeholders in Broadband and its implementation but it also presented us with other issues and opportunities that we need to address.
Dominic Schipano, CITT
BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.
For more details, please see:
A selection of downloadable samples from our Annual Publications catalogue.
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