Latin American Operators Work to Narrow the Broadband Gap, Pyramid Finds

Dec 09, 2010, 09:00 ET from Pyramid Research

CAMBRIDGE, Mass., Dec. 9, 2010 /PRNewswire/ -- Telecom networks in Latin America are struggling to keep up with bandwidth demand created by new applications like video streaming and IP-based services, forcing the region's network operators to explore and invest in bandwidth-boosting technologies like fiber to the home (FTTH), according to a new report from Pyramid Research (

Fiber to the Home: The Long-Term Answer to Narrowing the Broadband Gap examines the drivers behind FTTH deployment, considers its advantages with respect to other access technologies, and describes how fiber deployment could position Latin America at the cutting edge of broadband's evolution. It analyzes the benefits associated with the improvement of telecom services. Case studies from three countries – Italy, Mexico, and France – illustrate how the introduction of FTTH maximizes revenues and services.

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Broadband access has become a major priority to companies and countries worldwide.  "It is a social welfare measure, and governments in developed and emerging economies need to regulate and promote its growth," says Jose Manuel Mercado, Senior Analyst at Pyramid.  "Without broadband access, developing countries run the risk of enlarging the digital divide and becoming second- or third-class citizens within the global order," he adds.

Worldwide, broadband penetration reached 7 percent and is expected to reach 12.4 percent by 2015.  "In the Latin American region, the broadband penetration rate will nearly double, increasing from 7 percent in 2010 to 12 percent by 2015. The broadband market has also been characterized by a high degree of innovation, which has led to a rapid increase of bandwidth and the introduction of new innovative services (voice over IP, IPTV, TV over DSL, etc.)," indicates Mercado.

Pyramid believes that the deployment of FTTH in Latin America is the long-term answer to reducing the technological gap between these economies and the developed world. "FTTH will provide operators enough resources to face an increasing demand for bandwidth that is not supported by either the current infrastructure or its future adaptations," notes Mercado.


Jennifer Baker


SOURCE Pyramid Research