Abstract
Overview
This report covers developments in the broadband and Internet markets of Latin
America and the Caribbean.
The countries covered in the report 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.
Key highlights:
Argentina
Argentina' s Internet market is the third largest in Latin America, after
Brazil and Mexico. In terms of Internet user penetration (50.3% per capita),
it is well above the regional average and more than twice as high as the world
average (which was about 23% in early 2009). Argentina' s broadband market is
the most developed in the region and has the highest penetration rate. ADSL is
the main broadband technology, but cable modem occupies a significant place
with about one third of the subscriber base. The market is divided fairly
equally between three players: Telefonica de Argentina, Telecom Argentina, and
Grupo Clarin. While the first two offer ADSL services primarily in their
regions of operation, Grupo Clarin provides cable modem broadband on a
nationwide basis; this has helped to foster competition and reduce broadband
prices, which are among the lowest in Latin America.
Brazil
Compared with other economic indicators, Brazil' s Internet penetration is
lower than expected, and there is considerable room for growth. In terms of
subscriber numbers, Brazil is the regional broadband leader, but it trails
neighbouring Chile and Argentina in terms of penetration. Broadband uptake has
been stifled by high prices and weak competition. Broadband charges in Brazil
have been dropping while speeds have been increasing, but prices are far too
high for the Brazilian socio-economic environment. In fact, broadband tariffs
are considerably higher than in neighbouring Argentina. ADSL is the leading
broadband technology, with 70% market share, followed by cable modem with 25%,
and wireless broadband with 5%. The country is considered a world leader by
many in terms of e-government, and is also quite active in the area of
e-education.
Mexico
Broadband is one of the highest growth sectors in Mexico' s telecommunications
market, with revenues continuing to record double digit growth for the fourth
quarter of 2008 despite the broader economy posting negative growth for that
period. Telmex' s ADSL product, Prodigy Infinitum, continued to post very
strong growth rates during 2008. Nevertheless, there remains significant scope
for growth, as Mexico' s broadband penetration is merely one-quarter of the
OECD average, while its broadband prices are higher than most other OECD
nations. High prices and low penetration levels are attributed to a lack of
investment and competition due to, in part, foreign investment restrictions
and a lack of local loop unbundling. Telmex dominates with approximately 95%
of the ADSL market.
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