Cisco’s Barometer: Argentina Will Surpass 5 Million Broadband Connections
Cisco has announced the results of the Cisco® Broadband Barometer’s special edition for the Argentine bicentenary of 2010. The study reports a growth of 5.6 percent in fixed broadband connections, a 41.1 percent growth in the mobile data subscribers segment, and a 10.6 percent growth in total broadband connections in Argentina from December 2009 to May 2010. During that period 492,000 new fixed broadband connections were added, reaching a penetration of 10.7 percent and keeping the country in second place in Latin America for a second consecutive year.
Latin American economies are in different development phases, but according to a recent report of the World Economic Forum, they all face the challenge of global competitiveness. The challenge for governments is to take advantage of the strategic role that networks and connectivity can play to propel economic development and increase productivity.
A report of the World Bank, titled “Information and Communications for Development, 2009: Extending Reach and Increasing Impact,” analyzes the effects of information and communications technology in the economic growth of developing countries. The report finds that an increase of 10 percent in high-speed Internet connections corresponds to an increase of 1.3 percent in economic growth.
The report also shows that broadband connectivity is essential for the ICT services market, as it generates employment for young people, increases productivity and exports, and promotes social inclusion. The report explains that developing countries currently exploit less than 15 percent of the potential worldwide market for the ICT services sector.
In order to make broadband access universal, investments must be made in ICT. In Argentina a study made by the consultant Global Insight last September shows that the investment in ICT in the period 2007-2009 was 1.1 percent of the gross domestic product. The study concluded that both public and private investments must be made to stimulate the development of technologies in Latin America. This will enable Latin American countries to better support a growth of 50 percent in network traffic in the region. Network traffic is projected to grow 7.9 times by the end of 2014, according to the most recent Cisco Visual Networking Index report.
In Argentina, 50 percent of the fixed broadband connections have connection speeds of more than 1 megabit per second, but the quality and speed of broadband connections must be improved to help ensure a high-quality experience for users. Improvements are especially needed because of the predicted increase in network traffic, with video being the main source of Internet traffic.
Highlights of the Cisco Barometer for the Argentine Bicentenary:
- More than three quarters (77 percent) of fixed broadband connections are concentrated in the Capital District of Buenos Aires, and almost a quarter (23 percent) are in the rest of the country. In spite of that, connections located outside the metropolitan area of Buenos Aires grew 9.5 percent due to a continuous improvement in the offers and coverage of service providers. Connections in the metropolitan area grew 3.8 percent.
- The regions with the highest broadband penetrations are the city of Buenos Aires (Ciudad Autónoma de Buenos Aires) with 49.3 percent, Tierra del Fuego with 16.5 percent, San Luis with 16.4 percent, Santa Cruz with 15.8 percent and La Pampa with 14.5 percent.
- Half of the broadband connections have speeds higher than 1 Mbps, although in 2009 and 2010 service providers focused their offers on speeds of more than 3 Mbps.
- During December 2009 to May 2010 mobile broadband connections grew 26.7 percent, adding 921,493 connections in the Argentine market. Most of these connections are in the private and residential market segments.
- Juan Pablo Estevez, regional director, Cisco Southern Cone
“Argentina has the second-highest level of broadband penetration in Latin America. According to the results of the Barometer Report, we can see how the demand of connectivity services continues to grow. Although the focus of the Cisco broadband Barometer is in broadband penetration, in the year of the bicentenary we will also focus in the quality of connections; this is a fundamental factor in preparing the networks for the technologies and applications of the future and in offering citizens a unique and profitable opportunity to increase their productivity