Demand for bandwidth, OTT video spurs FTTH investment in LatAm

By Jim O'Neill on Jan 03 2017 at 1:45 PM
Demand for bandwidth, OTT video spurs FTTH investment in LatAm

Growing consumer spending power and affordable multiplay service bundle are fueling the adoption of prepaid satellite pay-TV services (DTH) in Latin America, especially among consumers who previously were not able to afford service offerings.

That new class of subscribers, in turn, is influencing operators to invest in expanded networks, especially fiber-to the-home (FTTH).

And, according to a recent report from Pyramid Research, the relatively low service penetration levels among Latin American consumers suggest that there is still substantial room for growth, especially for IPTV service offerings that will leverage the high bandwidth of FTTH, although DTH and cable are likely to remain dominant through 2021.

The anticipated easing of telecom regulation in Argentina and Mexico – where incumbent telecom operators historically have been banned from launching pay-TV services in order to prevent market concentration – will also create greater incentives for fiber investments, supporting the eventual launch of IPTV services.
OTT video services also are expected to see strong uptake over the next five years.

That trend will challenge traditional pay-TV business, which is prompting some pay-TV operators in the region to launch their own OTT platforms, while others are establishing partnerships with pure OTT players such as Netflix.
Stay tuned.

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