The Broadband and Internet Market in Latin America
Broadband penetration in Latin America and the Caribbean was about 4.9% in early 2009, well below the world average of 6.1%. The slow uptake of broadband in the region can be attributed to several factors, the main one being the high prices charged by providers. In fact, despite liberalisation, in most countries the fixed-line incumbents dominate the local loop – and hence the ADSL market – and are only challenged by cable modem providers. Other inhibiting factors include low PC penetration, insufficient fixed-line infrastructure, highly unequal income distribution, a lack of economies of scale, and regulatory hurdles.
On the positive side, competition has been increasing and prices have been dropping in most countries. Given the region’s general economic indicators, there remains ample space for expansion. Although the situation varies considerably from country to country, the region as a whole should be a fertile ground for broadband investment. Indeed, Latin America was the world’s fastest-growing broadband market in the fourth quarter of 2008.
The options available in the region are ADSL, cable modem, wireless broadband, mobile broadband, and satellite broadband. ADSL is the prevalent technology, followed by cable modem. Mobile broadband, only two years after launch, has managed to attract about 5 million subscribers. WiMAX, on the other hand, after suffering serious setbacks due to licensing delays, has been further knocked back by the global financial crisis.
Broadband subscribers and penetration – major Latin American countries – 2007 – 2008
|
Country |
2007 |
2008 |
Annual change |
Penetration per capita |
Household penetration |
|
(million) |
|||||
| Argentina | 2.56 | 3.44 | +35% | 8.7% | 31.4% |
| Brazil | 7.72 | 10.20 | +32% | 5.3% | 18.0% |
| Chile | 1.31 | 1.45 | +10% | 8.6% | 29.4% |
| Colombia | 1.21 | 1.98 | +64% | 4.1% | 18.8% |
| Mexico | 4.55 | 6.90 | +52% | 6.5% | 21.8% |
| Peru | 0.59 | 0.74 | +26% | 2.5% | 10.5% |
| Venezuela | 0.86 | 1.28 | +49% | 4.4% | 17.4% |
(Source: BuddeComm based on industry data with BuddeComm estimates)
BuddeComm recently published the new report: Latin American Broadband and Internet Market. The countries covered include: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, the Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Suriname, Uruguay, Venezuela, and the small Caribbean island nations. For more information see: Latin American Broadband and Internet Market
