Fixed telecom market to reach $44.8 bn Latin America in 2015

optic fiber

The size of the Latin American fixed communications service market will be $44.8 billion in 2015, according to Pyramid Research.

Fixed line telecom connections for voice and Internet services in Latin America will grow 2.3 percent to 163.8 million in 2015, with fiber-optic (FTTH/B) accounting for 5.1 million connections.

Broadband penetration in Latin America will be 12 percent and voice telephony penetration will be 17 percent of the population.
While the overall number of fixed lines will grow at a CAGR of 2.1 percent, FTTH/B connections will increase at a CAGR of 34.9 percent over the next five years.

Marcelo Kawanami, senior analyst at Pyramid Research, said: “By year-end 2020, we expect Latin America to have 181.9 million fixed broadband lines.”

Fiber connections will account for 6.9 percent of broadband lines (5.1 million lines) in 2015 against 5.1 percent in 2014. xDSL broadband technology represents 57.5 percent of the total Latin American broadband lines in 2014.

xDSL will remain the dominant broadband technology in Latin America in the next few years, still holding over 40 percent of all broadband connections at the end of 2020.

Over the next five years, traditional voice services carried through circuit-switched networks will decline by a CAGR of 6.3 percent in Latin America, despite the increased adoption of VoIP services.

Internet service revenue will expand at a CAGR of 6 percent in the region between 2015 and 2020.

Baburajan K
editor@telecomlead.com