Fixed broadband service revenue in Latin America to reach US$28.1bn in 2024 in Latin America, says GlobalData

Total fixed service revenue will reach US$35.3bn by the end of 2019, representing flat growth over 2018 due to ongoing fixed-voice revenue losses. Over the next five years, fixed broadband service revenue will grow at a CAGR of 4.3%, from US$22.8bn in 2019 to US$28.1bn in 2024. Growth will be mainly driven by the increased adoption of broadband connections, supported by operator’s network investments across the region, says GlobalData, a leading data and analytics company.

The company’s latest report, ‘Latin America Total Fixed Communications Forecast, reveals that fixed broadband will account for 67.2% of the total fixed-service revenue estimated for 2019 and this share in increase to 74.3% by year-end 2024, supported by operator’s network infrastructure investment

Ivan Maldonado, Technology Analyst at GlobalData, comments: “Latin America is characterized by a vast disparity in the maturity of fixed broadband infrastructure levels resulting in a variety of initiatives required to boost fixed broadband revenues. Telefonica in Brazil, for instance, is highly focused on fibre to the home (FTTH). Meanwhile, cable players such as Grupo Televisa and Millicom are investing in ten-Gigabit (GB) XGS-PON technology over their existing hybrid fibre-coaxial (HFC) networks, which can now achieve cost parity with GPON and serve more subscribers per line – translating into cost savings for cable companies.

Maldonado adds: “Going forward, we expect 5G fixed wireless services will contribute to reach underserved and remote areas, where a business case for fixed broadband cannot be made yet.”

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