IPTV: Driving Pay TV in Latin America

IPTV: Driving Pay TV in Latin America

IPTV In Latin America
There is little doubt as to the internet’s impact on any
number of industries, companies and individuals. There
is an ever growing range of data available with content
continually expanding, and the potential for using the
internet seems limitless.
For telecoms operators globally, this has provided
opportunities for growth as the internet is used for an
increasing range of services. Additionally, it has offered
telecoms companies the chance to expand their
own product portfolios. Internet Protocol Television
(IPTV) allows companies to offer video services
over their internet networks, although, for this to take
place, it requires higher speeds to be available than
those needed by regular services such as email and
accessing websites.
The lines between the broadcasting market and telecoms
industry have become increasingly blurred,
with broadcast content available on a PC and internet
services accessible from a TV screen. The crossover
of these two markets sees pay-TV operators moving
into the telecoms market and traditional telephony
providers seeking to offer broadcast services.
For a successful launch of IPTV services, there are
several considerations that must be borne in mind,
including the limits in reach and speed of existing
network infrastructure, appropriate regulations and
ensuring the right content is in place. For the Latin
American market, it is the second of these that has
thrown up the greatest barriers to the expansion of
IPTV in the region.
Nonetheless, several telecoms operators in Latin
American countries have already launched IPTV
services or have announced their plans to expand
their existing infrastructure and product offerings to
include these services. Here BMI investigates some
of the key issues of launching IPTV in Latin America
and reviews existing products already available in
various markets.
Regulations
One of the key barriers to IPTV growth that has been
seen across telecoms markets in all regions of the world
is the conflict between the regulation of broadcasting
services available over telecoms infrastructure. In many
cases the existing regulations had not anticipated the
crossover of the broadcasting market with the telecoms
industry. This has certainly been the case in Argentina
and Mexico where incumbent operators are prevented
from offering pay-TV services under their existing
concessions. Changing the laws governing the telecoms
sector, however, can be a long process, putting pressure
on fixed-line operators that are anxious to move into
new areas of the market.
As incumbents usually have the widest reach in terms
of fixed-line infrastructure, these companies retain a
considerable advantage when looking to roll out IPTV
services. If smaller operators cannot build out such
infrastructure, the chances of offering IPTV services
are considerably more limited.
However, some smaller operators have built out small
fibre-optic networks and begun offering pay-TV services.
Brasil Telecom launched a video on-demand (VoD)
service in 2008 but cannot expand to offering a full range
of IPTV services owing to restrictions over ownership
of pay-TV operations in the country.
While there are several examples of regulatory difficulties
in Latin American telecoms markets regarding the
launch of pay-TV services, and consequently IPTV, other
markets stand out for having made few restrictions to
launch. Peru and Colombia in particular are notable as
their regulations have not restricted the fixed-line companies
present in their markets from offering pay-TV
services, thus reporting IPTV launches by Telefónica
del Perú as well as Une-EPM in Colombia.
Making the changes in the market requires considerable
political will, and the dominance of incumbent operators
often makes changes an unpopular move. Additionally,
there is conflict under whose remit pay-TV services then
falls: is pay-TV the responsibility of the broadcasting
regulator or the telecoms watchdog?

Introduction . 7
IPTV In Latin America..7
Regulations ..... 7
chart: Latin America Broadband Subscriptions (000).7
2003-2013
Case Study: Updating Outdated Regulations In Argentina. 8
Case Study: Ensuring Competition In Mexico . 8
Getting Up To Speed .. 9
chart: Broadband Penetration In Latin America 9
2006-2013
chart: Colombia Broadband Accesses By Speed10
2008
Case Study: Chile .. 10
chart: Chile Internet Connections By Speed 10
2008
Conclusion: The Prospects For IPTV In Latin America..11
Table: Latin America: IPTV Launches And Trials...11
indicators: CANTV, Telefónica, TVA, Brasil Telecom, Telecom Argentina,
GTD Manquehue, ETB, Une-EPM, Antel, Telpin, GVT
Market Data Analysis .. 13
Argentina.13
Table: Argentina Broadband Market, 2008.13
operator: TASA, Telecom Argentina, CableVisión*, Ot her*, Tota l
chart: Argentina Corporate Internet Subscriptions (‘000) ...13
2007-2008
Regional Broadband Take-up .. 13
TA BLE: ARGENTINA RESIDENTIAL INTERNET ACCE SS BY REGION14
indicators:: Buenos Aires, AMBA, Santa Fe, Córdoba, Pata gonia 1, NOA 2, Litoral 3, Mendoza,
Centro 4, NEA 5, Total
chart: Argentina Residential Broadband Market ...14
Subscriptions By Technology (000)
Technologies . 14
Table: ARGENTINA WIRELINE DEVELOPMENTS....14
period: May/09 - Oct/09
Brazil 15
chart: Brazil Active Internet Users (mn) ....15
2008-2009
Table: Brazilian Broadband Market Q109,...15
company/technology: oi/brasil telecom, telefonica , net servicos, other*, tota l
Table: Brazil BROAD BAND TECHNOLOGIES IN BRAZIL (2004-2008).16
technology: ADSL, CABLE, OTHER (RADIO), TOTAL
Broadband Technologies 16
Table: BRAZIL SELECTED WIRELINE DEVELOPMENTS16
period: apr/09 - dec/08
chart: Brazil Broadband ARPU: A Comparison .. 17
2007-2009
ARPU.... 17
Alternative Technologies....17
BPL 17
WiMAX . 17
Chile . 17
chart: Chile Broadband Subscriptions By Connection Speed (‘000) 18
2007-2008
Table: Chilean Broadband Market, Dec 2008.18
operator: telefonica chile, vt r globalcom, cnt (telsur) entel, Ot her (e), Tota l
chart: Chile Dedicated Internet Connections By Technology (‘000) 19
(2007-2008)
WiMAX . 19
Fibre-Optic .... 19
Rural Broadband ... 19
Table: CHILE Wireline Developments.....20
period: apr/09 - JUN/08
Colombia.... 20
chart: Colombia Dedicated Internet Subscribers By City20
2008
chart: Colombia Internet Market By Subscriber Type ....21
YE08, ‘000 Subscribers
Internet technologies 21
Table: COLOMBIA INTERNET MARKET BY CONNECTION TYPE 2006-2008 (‘000).22
connection type: dial-up, xdsl, cab le modem, wimax and wireless, other
Broadband Speeds 22
Table: COLOMBIA INTERNET MARKET BY SPEED (‘000)..22
indicators: up to 256kbps, 256kbps-512kbps, 512kbps-1mbps, 1mbps-2mbps, 2mbps-4mbps,
Ov er 4mbps
Table: COLOMBIA WIRELINE DEVELOPMENTS.....22
period: mar/09 - dec/07
Mexico.. 22
Mexico Telmex Internet Subscribers (‘000) 23
(Q107-Q109)
Table: Mexico Internet Subscription Market, 2004-2007 (‘000)24
connection type: dial-up, xdsl, cab le, other, tota l
Other Technologies 24
Table: Mexico Internet Users By Access Type, 2000-2008 (‘000)..24
indicators: Access At Home, Access Outside Home, o/w own computer, o/w do not
own computer, Tota l
Table: Mexico Fibre-Optic Network, 2000-2007 (‘000 km)....24
network: Fibre-Optic Cables
Table: Mexico’s Wireline Developments.25
period: feb/09 - jan /08
Peru... 25
chart: Peru Internet Subscribers (‘000) 26
2000-2007
Table: PERU Internet By Technology And Subscriber Type 2007 (‘000)...26
connection type: Dial-up, Dedicat ed Wireline, Dedicat ed Wireless, ADSL, Cable Modem, Total
chart: Peru Public Internet Cabins Internet Access By Technology .....26
2000-2007
Venezuela .. 27
chart: Venezuela Internet Users In Venezuela (‘000) ..27
(2006-2008)
Table: Venezuela Internet Market 2007 2008 By Connection Type (‘000)..28
connection type: Dial-up, Broadband, ow CANTV.net, Tota l
Mobile Broadband . 28
chart: Venezuela Internet Subscriber Breakdown ..28
(2006-2008)
Telecentres And Cybercafés .... 28
Table: Venezuela Wireline Developments....28
period: MAR/09 - APR/08
Submarine Cables . 29
Industry Forecast Scenario ... 30
Argentina..30
chart: Argentina Industry Trends - Internet Sector .30
(2006-2013)
Table: Argentina TELECOMS SECTOR –INTERNET–HISTORICA L DATA AND FORECA STS....30
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s
Brazil30
Table: Brazil Telecom Sector -Internet–Historical Data and Forecasts30
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s
chart: Brazil Industry Trends - Internet Sector 31
(2006-2013)
Chile.31
chart: Chile Industry Trends - Internet Sector 31
2006-2013
Table: Chilean Telecoms Sector–Internet–Historical Data & Forecasts31
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s
Colombia31
chart: Colombia Industry Trends - Internet Sector ..32
(2006-2013)
Table: Colombia TELECOMS SECTOR –INTERNET–HISTORICA L DATA AND FORECA STS32
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s
Mexico....32
chart: Mexico Industry Trends - Internet Sector 32
2006-2013
Table: Mexico Telecoms Sector–Internet–Historical Data & Forecasts, 2006-2013...32
indicators: No. of internet users (‘000), No. of internet users/100 inhabitant s,
No. of broadband internet subscribers (‘000), No. of broadband internet subscribers/
100 inhabitant s
Peru .33
chart: Peru Industry Trends - Internet Sector .33
2006-2013
Table: Peru Telecoms Sector–Internet–Historical Data & Forecasts. 2006-2013.33
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s
Venezuela..33
chart: Venezuela Industry Trends - Internet Sector ..34
2006-2013
Table: Venezuela Telecoms Sector–Internet–Historical Data & Forecasts34
indicators: No. of Internet Users (‘000), No. of Internet Users/100 Inhabitant s,
No. of Broadband Internet Subscribers (‘000), No. of Broadband Internet Subscribers/
100 Inhabitant s