Central America's Broadband Growth to Exceed Latin American Average, Pyramid Finds

CAMBRIDGE, Mass., May 20 /PRNewswire/ -- Underpenetrated by broadband services, Central America will produce growth rates exceeding the Latin American average due to new competitors and sales tools, leading to another 1.65 million broadband connections being added during 2009-2014, according to a new report from Pyramid Research (www.pyr.com).

Emerging Opportunities: Broadband Adoption Surges in Central America examines broadband penetration in both the business and residential markets in Central America. It analyzes the competitive pressures that current fixed broadband operators are facing from fixed and mobile players and their potential impact on uptake. The 14-page report also evaluates the strategies of bundling broadband with pay-TV and VoIP, as well as the strategies of PC financing. Case studies examine the broadband strategies of two Central American operators. Download an excerpt of this report here: http://www.pyramidresearch.com/downloads.htm?id=5&sc=PRN051910_INSLA2.1. Purchase this report online here: http://www.pyramidresearch.com/store/ins_la_100511.htm?sc=PRN051910_INSLA2.1.  

Although the number of broadband connections in Central America grew at a 58 percent CAGR in 2004-2008, broadband penetration still lags the Latin American average at 2.46 percent of the population in 2009, notes Jose Magana, analyst at Pyramid Research and author of the report. However, market conditions are improving rapidly. "Pyramid believes that latent demand for broadband in Central America will produce strong, sustained growth ahead of the Latin American average due to new competitors and sales tools, such as bundling and financing," says Magana. "The combination of these developments will help make up for poor access and low affordability, leading to another 1.65 million broadband connections being added during 2009-2014."

Fixed broadband operators face pressure from various competitors, and the ensuing fight over subscribers will boost penetration of broadband services across the region. "Pyramid predicts that mobile broadband connections in Central America – including prepaid connections – will exceed fixed broadband by 2014, so the threat from mobile operators is real and powerful," Magana explains. "Also, the cost of a computer is a significant barrier to broadband adoption for fixed operators; to compete, operators will have to reduce equipment costs and offer convergent service."

Emerging Opportunities: Broadband Adoption Surges in Central America is part of Pyramid Research's Latin America Telecom Insider report series. Download an excerpt of the report here: http://www.pyramidresearch.com/downloads.htm?id=5&sc=PRN051910_INSLA2.1. This report can be purchased online here: http://www.pyramidresearch.com/store/ins_la_100511.htm?sc=PRN051910_INSLA2.1 or by contacting [email protected].  

CONTACT:  Jennifer Baker, +1-617-871-1910, for Pyramid Research

SOURCE Pyramid Research

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