Argentina - Fixed Broadband Market - Statistics and Analyses
Argentina has one of the highest broadband penetration rates in Latin America. The country's economic and political difficulties during the last decade have impacted on sector investments, though there have been steady improvements in recent quarters. In 2017 about ARS22.37 billion was invested in the fixed-line sector, while in the first quarter of 2018 an additional ARS6.34 was invested. A large tranch of this was earmarked for expanding fibre networks beyond areas of the principal cities. This work has had a positive effect on the delivery of services, with the average download speed having increased from 5.3Mb/s in the first quarter of 2016 to 12Mb/s by the fourth quarter of 2017 and to 13.2Mb/s by the second quarter of 2018.
The market still suffers from limited competition, with the two fixed-line incumbents Movistar (known as Telefónica de Argentina before a rebranding exercise in April 2018) and Telecom Argentina dominating the DSL platform. These operators offer similar services and together control about two-thirds of all fixed-line broadband connections. The only meaningful competition was from the cable modem platform, which was owned by Grupo Clarín's Cablevisión unit until early 2018 when it was acquired by Telecom Argentina. The merger of the two companies (approved by the competition authorities in June 2018) was made possible following an early 2017 decree allowing telcos to branch into the cable TV sector.
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 was launched in late 2010, with the state-owned satellite company ARSAT responsible for the project. In August 2016 ARSAT also became a partner in a project to deliver low-cost broadband to 1,200 localities across the country. The project is expected to cost ARS4.53 billion, of which ARS3.66 billion will be used to connect localities to the Federal Fibre-Optic Network (REFEFO), which is comprised of a federal backbone network made up of thirteen geographic regions, as well as provincial networks interconnected to the backbone. The network will span 58,000km and connect around 2,600 localities, accounting for 90% of the population. By mid-2018 about three-quarters of the project had been completed.
This report provides an overview of Argentina's fixed and fixed-wireless broadband markets, accompanied by statistics, analyses, and subscriber forecasts.
Telecom Argentina scales down investment in response to macro-economic difficulties;
Cablevisión merged with Telecom Argentina;
TVFuego builds a GPON network;
Report update includes the regulator's market data to March 2018, company financial and operating data to Q2 2018, recent market developments.
Companies mentioned in this report:
Movistar (Telefónica de Argentina), Telecom Argentina, Grupo Clarín, Cablevisión, Claro, VeloCom, Netizen, Phonevision/Omnivision, Telpin, DirecTV, Supercanal, Telecentro, Red Intercable, ARSAT, MercadoLibre.