Multiplay Service Penetration in Latin America Expected to Reach Close to 40% by 2020

Multiplay Service Penetration in Latin America Expected to Reach Close to 40% by 2020 Image Credit: The Fast Mode

According to a new report by Pyramid Research, the number of households subscribing to multiplay services in the Americas will reach 144.5 million in 2016, representing a penetration of 46.3%, well above the global average of 24.7%.  Latin America which is expected to account for 37.2% of the total this year is poised for strong growth with multiplay service penetration projected to reach 39.1% by year-end 2020. 

Multiplay bundle services, especially quadruple-play combining traditional telecom services such as fixed voice, fixed broadband, pay-TV and mobile services, is one of the key strategies being adopted by operators in order to  develop new revenue streams, increase margins, retain existing customers and reduce churn

“Although we observe a general growth opportunity for multiplay services in Latin America, countries within the region are at different stages of maturity. In Brazil, operators such as Claro and Vivo are already pushing fixed-mobile convergence and quad-play offers, while in Colombia and Argentina, quad-play bundles are still non-existent,” says Marcelo Kawanami, senior analyst at Pyramid Research.

The research firm said that the deployment of FTTH/B services in some Latin American countries such as Brazil, Mexico, Colombia and Argentina will allow telecom operators to roll out IPTV services and advanced OTT media platforms, improving their position in the residential market and adding pressure on cable operators offering triple-play services.

“IPTV is an attractive service to bundle with FTTH/B broadband as the customer can enjoy the advantage of higher bandwidths through the consumption of content,” says Kawanami.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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