A combination of supply-push and demand-pull will boost the embryonic fiber-optic broadband market in Latin America from 2.2 million accounts in 2013 to 11.8 million accounts in 2018, according to a new report from market research firm Pyramid Research.

"Across Latin American markets with sustained economic growth and rising GDP per capita, such as Brazil and Mexico, the demand for more bandwidth, better performing networks, consumer video and cloud-based enterprise services is expanding," said Daniele Tricarico, analyst at Pyramid Research. “Nonetheless, Pyramid Research believes that supply-push forces are playing the decisive role in the growth of fiber broadband.”

Supply-side contextual factors include regulatory frameworks that push operators to deploy fiber, increasing competition from cable companies and from mobile operators deploying LTE, and the need for fixed operators to innovate to thrive in increasingly competitive markets. In the absence of such supply-side pressures, even when facing growing demand for superfast broadband, operators are less likely to make the substantial investments needed to offer fiber broadband service, Tricarico says.

Pyramid Research’s new report, "FTTx in Latin America: Competition and Regulation Boost Growth," examines the current status and growth opportunity of fiber-optic broadband in Latin America. Pyramid highlights the key supply-push factors - regulation, competition and innovation - and the demand-pull factors - consumer, enterprise demand and urbanization - driving the development of FTTx. In the market detail section, the report presents case studies focused on operators Iusacell in Mexico and TIM in Brazil. To provide a perspective beyond Latin America, a market view of Spain is also included as well as an operator case study on the fiber network-sharing initiative undertaken by Orange and Vodafone in that country.

For more information on FTTx/access systems and suppliers, visit the Lightwave Buyer’s Guide.