Competition, regulation boost FTTx growth in Latin America

A combination of supply-push and demand-pull will boost the embryonic fiber-optic broadband market in Latin America from 2.2 million accounts in 2013 to 11.8 million accounts in 2018, according to a new report from market research firm Pyramid Research.

"Across Latin American markets with sustained economic growth and rising GDP per capita, such as Brazil and Mexico, the demand for more bandwidth, better performing networks, consumer video and cloud-based enterprise services is expanding," said Daniele Tricarico, analyst at Pyramid Research. "Nonetheless, Pyramid Research believes that supply-push forces are playing the decisive role in the growth of fiber broadband."

Supply-side contextual factors include regulatory frameworks that push operators to deploy fiber, increasing competition from cable companies and from mobile operators deploying LTE, and the need for fixed operators to innovate to thrive in increasingly competitive markets. In the absence of such supply-side pressures, even when facing growing demand for superfast broadband, operators are less likely to make the substantial investments needed to offer fiber broadband service, Tricarico says.

Spanish FTTH subscriptions soar in September to 509,000

Wednesday 27 November 2013 | 11:09 CET | News

Fibre-optic connections are growing at a record pace in Spain with the sector registering 24,654 new subscriptions in September to reach a total of 509,316 connections, according to data released by telecoms regulator CNMC. Although FTTH take-up has increased significantly in recent months, the September figure represents the highest ever monthly rise, the total number of lines representing a 88.2 percent increase on September 2012. The growth is mainly due to the expansion of fibre coverage throughout the country, led by Movistar, which has pledged to cover 3.8 million households by the end of the year.

The fixed-line sector in general registered a record increase of 96,517 new subscriptions in September due to the continuing popularity of broadband and fixed telephony packages. The total broadband base now stands at almost 12 million (11,997,271), with a year-on-year increase of 5.8 percent. Alternative operators accounted for 73 percent of new subscriptions in the sector (70,290), cable operators added 15,351 new lines, while Telefonica accounted for 10,880 lines.

The increase in fibre optic and overall fixed line subscriptions came alongside a sharp drop in mobile phone lines, which were down 64,002 in September to 52.13 million, a 3.8 percent year-on-year decrease. In terms of operators, Movistar shed 153,069 lines, followed by Vodafone (56,791 lines) and Yoigo (15,555 lines), while Orange attracted 41,081 customers and MVNOs added some 120,332 new lines. The total number of mobile lines ported in September was 498,000.