Broadband keeps growing in Latin America

According to Dataxis, broadband is the only fixed service that was not affected by the crisis in some Latam markets. The company estimates that broadband accesses will reach 92.1 million by the end of 2023, and the penetration will grow to 44.4%.
The data was revealed during the Webinar called “Main trends in the evolution of broadband in Latam“, which was presented by Carlos Blanco, Dataxis’ Senior Analyst. In 2017, broadband reached 71.8 million accesses and surpassed pay TV. In this way, it is the heart of all the strategies of communication services and exhibits an ARPU of around USD 28.
According to the data, only two holdings held 52.4% of all Internet accesses in Q417, América Móvil and Telefónica, in third place was Brazil’s Oi, followed by Telecom Argentina, which now with the Cablevisión accesses, surpassed Mexico’s Megacable in fourth position.
In Q417, broadband penetration in Latin America was 38.8%. Uruguay led with 73.6%, followed by Mexico (50.4%) and Argentina (50.3%). Although Brazil maintained a relatively low penetration (35.6%), it accounted for 36.1% of all accesses in the region.
This shows the structural stagnation in traditional pay TV. While broadband continued to grow in the Brazilian market, pay TV began to fall in the country and lost its regional leadership in number of subscribers.
Regarding the technologies, the xDSL continued to dominate at the end of 2017, but began to lose market share with Cable Modem and Fiber due to the substitution carried out by incumbent operators such as Telmex in Mexico, Telefónica in some markets and Oi in Brazil.
In this context, Dataxis estimates that, by 2019, Cablemódem will be the leading technology. Meanwhile, the NGA technologies (VDSL, Doscis 3.0, fiber) already have specific weight and by 2023 they will be the dominant option (74.8% of total accesses).
According to Blanco, “the growth of FTTx will be accompanied by an impulse of IPTV and some OTT options in video, something that is already happening in several countries in the region.”
In turn, mobile is also a key player in the development of the Internet audience, accelerated by the dominance of 4G. This led to the multiplication of screens, with predominance of the Smartphone.