Americas Market Pers pecitve / Vol. 8, Issue 33, Edition 10 - Market Research Reports

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Americas Market Pers pecitve / Vol. 8, Issue 33, Edition 10

Description:

Telefónica’s FTTH Deployments to Warm Up the Triple-play Market in Colombia

On June 24, Colombian fixed-line operator Telefónica announced the launch of a high-speed residential broadband service based on FTTH infrastructure for the capital city, Bogota. The 16Mbps connection is being offered as part of a triple-play package that includes unlimited local fixed-line calls and 95 channels of satellite TV, for US$205 per month. The operator is now offering broadband connections with speeds ranging from 4Mbps to 16Mbps in Bogota. The company also upgraded the broadband capacity to 2Mbps via DSL for subscribers in Barranquilla, Cali, Cartagena, Neiva, Ibagué, Cúcuta and Pasto. A triple-play package with a 2Mbps connection, voice service and satellite TV is priced at $59.

Telefónica has clearly responded to the strategy of Telmex — which has been focused on consolidating a nationwide last-mile cable network to secure its ability to offer voice, broadband and TV services — by raising connections speeds and preparing the network access for coming IPTV services. Although the outlook for the Colombian broadband market is optimistic, the author believes that the high-speed broadband offers over FTTH will have an immediate impact only in the competition for the high end of the residential market. Considering the limited telecom budgets of most Colombian households and the lack of local online content and e-applications, we also believe that broadband connections of 512Kbps to 2Mbps will continue to make up the majority of broadband Internet connections over the coming years.

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