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 Friday, May 23, 2008

BNamericas reports that Argentina could end 2008 with approximately 3.5 million broadband connections, quoting a recent study of the market by local consultancy Consultora CIC. The research found that the country had almost 3 million high speed connections at the end of March 2008, an increase of around 50% year-on-year, and that ADSL is the dominant technology, accounting for 70% of the market. Penetration of other technologies (such as mobile broadband via 3G) remains low, said the report, as it was out of the price range of most Argentines.

The dominant players are former incumbents Telecom Argentina (TA) and Telefonica de Argentina (TdA), and media giant Grupo Clarin (via cable subsidiaries Flash and FiberTel). Despite having over 85% of subscriptions between them, CIC reported that there is still room in the market for other operators to flourish, particularly in provincial cities such as Cordoba, Rosario, Mendoza, Mar del Plata and Salta. However, Buenos Aires and its greater metropolitan area are close to saturation, with half of all Argentina’s broadband connections.