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Historically, fiber broadband in Latin America has had low penetration rates, but the region is at an inflection point: we expect FTTx accounts to grow at a 40% CAGR in 2013-2018. This report examines the status and growth opportunity of fiber broadband in Latin America, especially the key supply-push factors (regulation, competition, innovation) and demand-pull factors (consumer and enterprise demand, urbanization) driving FTTx. Three case studies focus on Iusacell in Mexico, TIM in Brazil and, for perspective, Orange and Vodafone in Spain. The Insider concludes with some recommendations.
Introduction and Landscape
Historically, fiber broadband in Latin America has had a lower penetration rate than in other regions. But in 2013-2018, we expect FTTx accounts to grow at a 40% CAGR. In this report, we examine the status and growth opportunity of fiber-based broadband in Latin America. We highlight the key supply-push factors - regulation, competition and innovation - and the demand-pull factors - consumer, enterprise demand and urbanization - driving the development of FTTx. We believe the region is at an inflection point, where a combination of both supply-push and demand-pull forces are helping fiber-based broadband take off. In the market detail section, the report presents case studies focused on operators Iusacell in Mexico and TIM in Brazil. To provide a perspective beyond Latin America, we also include a market view of Spain and an operator case study on the fiber network-sharing initiative undertaken by Orange and Vodafone in that country. We show how operators in these countries have undertaken FTTx initiatives as a result of a supply push or in response to an uptick in demand for fiber broadband services. The Insider concludes with some recommendations for operators and regulators.