FTTH/B Lines Will Represent 19.4% of All Broadband Accounts in Latin America by 2020

Date: 2015-10-27

Latin America will reach 73.4m broadband accounts by year-end 2015, with FTTH/B lines representing 6.9% of the total. By year-end 2020, FTTH/B lines will represent 19.4% of all broadband accounts in Latin America, while xDSL and cable together will account for 76.5% of the total. Brazil will exhibit the highest FTTH/B subscription CAGR during the 2015-2020 period driven by its National Broadband Plan and a push from operators to encourage migration from xDSL to FTTH/B

– Latin America will exhibit the highest CAGR for FTTH/B connections among all regions for the 2015-2020 period, at 32.6%. FTTH/B connections will reach 20.8m by year-end 2020, the equivalent of 19.4% of all broadband lines in the region. Argentina, Brazil, Mexico and Uruguay will see the highest participation of FTTH/B within the broadband market. 

– This growth will be highly driven by the regulatory framework in Latin America that, through various national broadband plans, will foster the rollout of fiber infrastructure via state-incentives and private investments such as in Brazil and Colombia. Nevertheless, regulatory inefficiencies and imbalances such as the ban imposed on Mexican incumbents on selling pay-TV services, hinder FTTH/B rollout and development. This has prompted operators such as Axtel to build their own fiber infrastructure in order to sell broadband and pay-TV services.

– The increasing demand for bandwidth is also a key driver. In the business segment, rising demand for cloud computing will drive FTTH/B adoption, as high bandwidth is a key premise for a successful cloud computing implementation

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