Fiber Optic Broadband Adoption Soars 258% in Latin America

In Mexico, Chile, Colombia, and Costa Rica, fiber optic broadband adoption has grown by 258% over the past four years, reflecting a significant shift in telecommunications infrastructure in these countries and surpassing the average fiber optic penetration among member countries of the Organization for Economic Co-operation and Development (OECD). 

Between December 2022 and December 2023, Mexico experienced the highest annual growth in the percentage of fixed fiber-optic broadband accesses among OECD member countries, increasing from 41.1% to 64.5%. 

Over the last decade, Mexico has registered significant growth in fixed broadband penetration, with an 89.3% increase in accesses per 100 inhabitants, and in mobile broadband, with an  215.2% increase. Mexico's increase in fiber optic adoption exceeded the average of OECD member countries, which was 4.8 percentage points.

In 2023, fiber optic connections accounted for 58.5% of total fixed broadband subscriptions in these Latin American countries. In contrast, DSL technology subscriptions have decreased by 66%, falling to 7.3% of total fixed broadband connections in 2023. 

By the end of 2023, fiber optic connections represented 42% of all fixed broadband subscriptions globally among OECD member countries. In contrast, DSL connections still represent 20.3% on average within the OECD.

"Fiber-optic networks are essential to support digital transformation by providing symmetrical upload and download speeds and scalability," the OECD notes. "These networks are critical for supporting emerging technologies such as 5G, which is starting to be deployed in the region but is still at an early stage compared to other countries."

In mobile broadband, 5G connections now make up 28% of mobile broadband subscriptions globally, marking a 9% increase year-on-year. "Although Latin America is making progress in the implementation of 5G networks, the region is still at an early stage compared to countries such as Japan and the United States, which lead in terms of 5G penetration," notes DPL News.

Among the efforts by operators in Latin America to deploy 5G networks, Liberty recently launched its 5G network for end users in Costa Rica. This expansion aligns with the growing global demand for high-quality connectivity, which is driving the adoption of advanced technologies in both fixed and mobile sectors.

In Chile, as previously reported by MBN, Claro, a subsidiary of Mexico's América Móvil, was awarded all the spectrum blocks in Chile's Second 5G Public Bidding. The tender raised nearly US$90 million and was conducted through an auction at the Ministry of Transport and Telecommunications (MTT).

According to the “State of Connectivity in Mexico 2024” report, Mexico has lagged in the adoption of 5G technologies compared to markets such as Chile and Uruguay, which benefit from a more favorable regulatory environment, as previously reported by MBN.

Nevertheless, 70% of executives in Mexico plan to adopt 5G connectivity for their operations by the end of this year, despite challenges such as a lack of necessary skills (28%) and concerns about the security of the business environment (29.1%). Additionally, the report highlights that 50% of companies experienced one to two hours of interrupted connectivity per week last year, resulting in higher operational costs, inefficiencies, loss of talent, and reputational damage