Skip to main content

Latin American Wireline Telecom to Reach $44.8 Billion

Traditional wireline communication investment has stagnated in numerous developed markets around the globe, but there's still some upside opportunity for new infrastructure deployment within the emerging markets.

Case in point: the number of fixed lines for voice and Internet services in Latin America will reach 163.8 million in 2015, that's an increase of 2.3 percent over 2014 deployments, according to the latest market study by Pyramid Research.

This represents a broadband penetration rate of just 12 percent and a voice telephony penetration rate of 17 percent of the population. Clearly, the forward-looking growth potential is still significant.

While the overall number of fixed lines will grow at a CAGR of 2.1 percent, fiber-to-the-home or business (FTTH/B) connections will increase at a CAGR of 34.9 percent over the next five years.

"Growth within fixed communications markets will be mainly driven by the increase in broadband lines," said Marcelo Kawanami, senior analyst at Pyramid Research. "By year-end 2020, Pyramid Research expects Latin America to have 181.9 million fixed broadband lines."

Pyramid Research now forecasts that fiber-optic communication connections will account for 6.9 percent of broadband lines (5.1 million lines) by year-end 2015 -- that's up from 5.1 percent in 2014.

While this indicates rapid growth, xDSL remains the broadband technology that is most widely used, representing 57.5 percent of the total Latin American broadband lines in 2014.

Telecom network operators continue to grow FTTH/B service deployment, but given the typical high-price for broadband internet access through fiber-optic technology in this market, service coverage is likely to be restricted to selected areas within major cities.

That being said, Pyramid Research expects that xDSL technology will remain the dominant wireline broadband method within Latin America during the next few years -- still maintaining over 40 percent of all broadband connections at the end of 2020.

"In all major Latin American countries, governments have developed National Broadband Plans to foster the expansion of broadband in remote locations which have not been historically served due to the high cost of network deployment and uncertain revenue potential," says Kawanami.

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, even though the market will experience the increased adoption of VoIP services.

However, Internet service revenue is forecast to expand at a CAGR of 6 percent in the LATAM region between 2015 and 2020. Pyramid Research now expects the Latin American fixed communications service market to be worth $44.8 billion in 2015. Note, mobile communications revenue is not included in this forecast.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve