Argentina - Broadband and Broadcasting Market - Insights, Statistics and Analysis
Although Argentina's broadband penetration is the third highest in Latin America, after Uruguay and Chile, economic and political difficulties during the last decade have impacted on sector investments, with the result that average download speeds, at about 5.5Mb/s, are relatively low for the region. The average speed ranks Argentina 120th of 190 countries surveyed.
To boost fixed broadband uptake, regulations need to promote further competition. The two fixed-line incumbents Telefónica de Argentina and Telecom Argentina dominate the ADSL market, offering similar services and together controlling about 68% of all broadband connections in the country. The only meaningful competition is from the cable modem platform, with services offered by Grupo Clarín. However, political strife in recent years has put the company at risk, obliging it to separate its operations, including its broadband division Cablevisión (providing services branded as FiberTel) into separate entities as part of new media legislation introduced in 2013.
A national connectivity plan, dubbed Argentina Conectada', involves the deployment of broadband services and free-to-air digital TV to underserved parts of the country. The plan, launched by the government in October 2010, is to be implemented over five years. State-owned satellite company Arsat is responsible for the project.
Argentina's pay TV market is the most mature in Latin America. The country has one of the highest rates of pay TV penetration, with about two homes out of three subscribing to services. Pay TV households are evenly distributed, with penetration in the major cities only slightly higher than in the rest of the country.
Grupo Clarín's Cablevisión is the country's leading pay TV operator with about 36% of the market; DirecTV is the second largest player, with a 20% share; Supercanal, Telecentro, and Red Intercable have approximately 6% to 7% each; the remaining 25% of the market is shared among small local companies and cooperatives.
This report provides an overview of Argentina's broadband and pay TV markets, accompanied by relevant statistics, analyses, and broadband scenario forecasts for the years 2015 and 2020.
Grupo Clarin invests in bundled services; Netflix streaming accounts for a fifth of broadband traffic; Argentina approves Argentina Digital Bill, enabling telcos to provide audiovisual services; Fecosur plans to launch an IPTV-based pay TV service by the end of 2014; broadcasting watchdog AFSCA approves Grupo Clarin's asset divestment plan; TVFuego builds a GPON network; Argentina Conectada requires ARS8 million investment; AT&T agrees to buy DirectTV operations in the US and Latin America; more than 30 telecom cooperatives awarded pay TV licences; DTT population coverage reaches 85% by mid-2014; Supreme Court rejects appeals against ban on telcos' ability to provide broadcasting services, including IPTV and VoD services; Telecom Personal launches WiFi service; company operational data to Q1 2015; recent market developments.
Companies covered in this report include:
Telefónica de Argentina, Telecom Argentina, Grupo Clarín, Cablevisión, Claro, VeloCom, Netizen, Phonevision/Omnivision, Telpin, DirecTV, Supercanal, Telecentro, Red Intercable, Arsat, MercadoLibre.