Chile continues to lead Latin America broadband market growth

Latin American service providers' ongoing investment in both HFC and fiber-based broadband has helped to put the service into more consumers' hands and is making them hungry for more.

One country that's leading the region's broadband race, argues TeleGeography, is Chile, which has seen an uptick in broadband service packages from its two largest telcos, America Movil and Telefonica (NYSE: TEF), and cable operator, Liberty Global (Nasdaq: LBTYA). As of Q3 2011, 63 percent of Chile's broadband customers signed up for broadband connections of 2 Mbps, a 34 percent increase over Q3 2010.

During the two-year period between Q3 2009 and Q3 2011, Chile's DSL subscriptions were up 15 percent, while cable subscriptions grew 32 percent.

What helped drive service providers to offer faster broadband speeds was what TeleGeography called a "customer-focused regulatory environment and highly competitive broadband market." In addition, the country's two main telecom regulators, Subtel and TDLC, have driven various initiatives, including net neutrality, affordable pricing, and competition regulations.

The government is also playing a role in driving Latin America's overall broadband adoption through targeted initiatives to encourage broadband investment. As a result, Latin American broadband penetration has grown from as low as 3 percent in Q3 2004 to 29 percent by Q3 2011.

Analyst Mark Gibson said that "Programmes like Todo Chile Communicado, 'Golden Triangle,' and UNASUR are helping Latin America steadily close the penetration gap with every passing year."

Latin America broadband penetration

For more:
- TeleGeography has this report

Download the eBook: Latin America's Next Generation Networks

Related articles:
Report: Chile led Latin America's Internet penetration in 2010
Telefonica Chile to build nationwide FTTH network
Chile: Broadband connections up 10% in H1
Orange Business ups its Latin America network capacity