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Used international bandwidth in Latin America to reach almost 700 tbps by 2026 at a CAGR of 36%, says TeleGeography

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TeleGeography, a global telecommunications market research and consulting firm, has predicted that used international bandwidth in Latin America will rise from around 150 Tbps in 2021 to almost 700 Tbps by 2026 at a CAGR of 36%. Its latest regional overview of Latin American connectivity market trends shows that demand is strong and continues to rise, largely driven by internet backbone providers and content providers.

While backbone providers take the majority share of used capacity in Latin America at 64% in 2021, demand from content providers has been growing.

Content providers claimed around 30% of LATAM used capacity in 2021, with demand rising from key industry players like Microsoft, Google, and Facebook. These players have been increasing capacity to accommodate the impact of lockdowns and restrictions in 2020, as well as remote working trends post-pandemic.

“We see that bandwidth demand remains strong across the region,” said Anahí Rebatta, Senior Analyst at TeleGeography. “It’s worth noting that 100Gbps wavelength price erosion is outpacing 10Gbps price erosion in nearly all routes. This suggests it will be more cost-effective for customers to upgrade their networks moving forward.”  

A recent presentation from Rebatta as part of Capacity LATAM 2022 also highlighted cloud headlines. Beyond the nine existing cloud regions in service in Latin America, there are six planned cloud regions—with Microsoft set to land in Brazil, Chile, and Mexico, and Oracle investing in Chile, Colombia, and Mexico.

TeleGeography’s Internet Exchange Map, a free resource depicting over 300 active internet exchange points (IXPs), further reveals more than 100 IXs across the region.

Brazil is a hotspot for connectivity, with over 30 IXs, whilst Argentina follows with over 20.

“Country to country, discrepancies remain in connectivity and price. Used international bandwidth is soaring ahead of the average Tbps in Brazil. But smaller economies like Ecuador have grown the fastest over the last four years,” said Rebatta.

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