Although the number of broadband connections in Central America grew at a 58% CAGR in 2004-2008, broadband penetration, at 2.46% of the population in 2009, still lags the Latin American average of 6.33%. Central America’s unequal income distribution, the cost of expanding the limited fixed infrastructure and insufficient competition in some markets are among the reasons behind the lag. Given the income inequality, broadband service is currently unaffordable for most people, which puts the bar even higher. Also, fixed operators may find that expanding coverage does not justify the heavy investments in areas with limited uptake or low probability of recouping investments. However, market conditions are improving rapidly. We believe that latent demand for broadband in Central America will produce strong, sustained growth ahead of the Latin American average due to new competitors and sales tools, such as bundling and financing. The combination of these developments will help make up for poor access and low affordability, leading to another 1.65m broadband connections being added during 2009-2014.
This Telecom Insider examines broadband penetration in both the business and residential markets in Central America. It analyzes the competitive pressures that current fixed broadband operators are facing from both fixed and mobile players and their potential impact on uptake. The report also evaluates the strategies of bundling broadband with pay-TV and VoIP and of PC financing. Case studies examine the broadband strategies of two Central American operators.
Published monthly for each of the world’s most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions. For more information about Telecom Insiders, please contact us via email at info@pyr.com or telephone at (617) 871-1900
