1. Study background Objectives Available results 2. FTTH/B in Latin America Overview Overall figures 3. LATAM FTTH/B main trends FTTH/B subscribers FTTH/B Homes Passed distribution FTTH/B Homes Passed in total HH Main announcements 4. Challenges / drivers for FTTH/B in LATAM 5. Forecasts up to 2020

1. FTTH Panorama LATAM
Market at December 2015
and forecasts to 2020
Roland MONTAGNE
Director, Principal Analyst
IDATE
+33 680 850 480
r.montagne@idate.org

2. FTTH Panorama LATAM
• 1. Study background
– Objectives
– Available results
• 2. FTTH/B in Latin America
– Overview
– Overall figures
• 3. LATAM FTTH/B main trends
– FTTH/B subscribers
– FTTH/B Homes Passed distribution
– FTTH/B Homes Passed in total HH
– Main announcements
• 4. Challenges / drivers for FTTH/B in LATAM
• 5. Forecasts up to 2020

3. 1. Study background

4. Study background
• Mission on behalf of the FTTH Council, LATAM chapter – 4th edition
• Objective: to provide a complete summary of the status of FTTH/B in LATAM
– 16 countries analyzed1
– Distinction between architecture: FTTH/B vs FTTN (FTTN/C+VDSL, FTTLA, FTTx+LAN)
– FTTH/B Definition by FTTH Councils Worldwide2
• Characterization of each project includes:
– Organization initiating the project
– Key parameters & Figures
– Technical parameters
– Financing & Business model
• Methodology use
– Desk research
– Direct contacts with FTTH players (questionnaires, phone interviews) & IDATE’s partners in LATAM
– Information exchange with FTTH Council, LATAM chapter members
1 Argentina, Barbados, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Grenada, Jamaica, Mexico, Peru, Puerto Rico, Trinidad and Tobago, Uruguay
2 FTTH/B definition available here

5. 2. FTTH/B in Latin America

6. Overview
From significant FTTH/B
deployments by
incumbents…
… to numerous initiatives from
alternative telcos including cable
operators
~4 million FTTH/B
Homes Passed
Incumbents
143,000 FTTH/B
Homes Passed
Municipalities/Utilities
~16 million FTTH/B
Homes Passed
Alternative telcos/ISP
At end 2015:80 FTTx projects
61 players involved in FTTH/B
Source: IDATE for FTTH Council LATAM Chapter

7. Overall Figures
In December 2015
~3.65 million FTTH/B subscribers
~20.1 million FTTH/B Homes Passed
 Average Take Up Rate1: 18.1%
(+1.5 points compared to Dec 2014)
1 Take up rate = number of FTTH/B subscribers over number of Homes Passed
 Growth Rates Dec 2015/Dec 2014:
Subscribers: +39%
Homes passed: +27%
Source: IDATE for FTTH Council LATAM Chapter

8. 3. Main trends

9. FTTH/B subscribers trends
• Mexico is now leading the LATAM FTTH/B market with 1.29 million subscribers
– +46% of subscribers yoy
– Telmex is leading the retail market
– TotalPlay covers 14% of the households in the country and expects to have 7.5 million HP by end 2019
• Brazil is just behind Mexico in the LATAM FTTH/B market with 1.25 subscribers
– +32% of subscribers yoy
– Telefónica is very active: investment plan of 25 million BRL (~6.3 million USD) between 2015 and 2017
– Hundreds of local ISPs involved, but in limited geographical rollouts
• Antel in Uruguay is one of the two most involved incumbents in the region (550,000 FTTH/B subs)
– Even if the trend of FTTH/B subscribers growth is decreasing at + 10% yoy (vs +101% in 2014 yoy),
40% of FTTH/B HP have opted for a service based on FTTH connection
– National coverage: the coverage is considered as exhaustive in Uruguay
– Among the leading countries in the global ranking with a penetration rate1 over 40% at end 2015
• Strong growth rates in smaller markets, confirming a general trend towards FTTH/B in the region
– Colombia +456% and Puerto Rico +340%!
– Ecuador +96%, Chile +34%
1Penetration rate = number of FTTH/B subscribers over total number of Households

10. Mexico
Brazil
Uruguay
Colombia
Argentina
Ecuador
Chile
Jamaica
Barbados
PuertoRico
CostaRica
TrinidadandTobago
Bolivia
DominicanRepublic
Peru
Grenada
0
1
2
3
4
5
6
7
8
9
Millions
FTTH/B Homes Passed distribution
• 7 countries with significant rollouts, among which with more than 1 million
Homes Passed
Mexico:
TotalPlay: massive deployment with +50% yoy
Brazil:
Telefonica: the biggest FTTH network
representing 73% of total FTTH HP in the country
Uruguay:
The entire country covered
Argentina:
More than 10 players involved in rollouts
•Jamaica and Puerto Rico:
Some FTTH projects emerged with the goal to deploy their network very quickly
Emerging markets: demography
not representative of effective market dynamism
Colombia:
Significant investment expected by ETB
Source: IDATE for FTTH Council LATAM Chapter

11. • Number of Homes Passed not
representative of effective
coverage
• Here, the ratio represented is % of
FTTH/B Homes Passed in total
households
– 2 countries > 90% !!!
– 7 countries > 10%
% FTTH/B Homes Passed in total Households

12. • LATAM players are much more
involved in FTTH rollouts
• Regarding technology, they have
mainly chosen GPON
FTTH/B LATAM technologies
Main architecture deployed* Dec. 2015
FTTH 92%
FTTB 8%
*Home Passed segmentation
Source: IDATE for FTTH Council LATAM Chapter
Main technology deployed* Dec. 2015
PON 97%
Ethernet 3%
*Home Passed segmentation
Source: IDATE for FTTH Council LATAM Chapter

13. Key Points for FTTH/B in LATAM

14. • A new dimension for FTTH in LATAM
– A relative take off in the FTTH
market since 2014, but at the scale
of the countries
– 9 countries among 16 in the Global
Ranking:
• Uruguay in the Top 5 in the world!
• 8 other countries with a penetration
rate from 2% to 4%
Key Points

15. Key Points
• Demography represents a huge potential in LATAM:
– large cities with the huge advantage of high density of population…
– … as well as small countries which can quickly become mature markets (Caribbean)
• The competition between cablecos and telcos is a driver for FTTH/B: but the
consolidation that occurred in 2015 (C&W / Columbus Telecommunications)
might slow down this phenomenon
• Low quality of existing copper: Telcos are betting on FTTH/B to promise
innovative services and higher speed rates
• Several players are involved in FTTH/B market in different countries in LATAM
• In most of cases, FTTH/B and LTE are together deployed in LATAM
• Governments are pushing the FTTH/B market
– National Broadband plans (Brazil, Chile) are clear incentives but they need to focus
quickly on FTTH/B
– Public telcos showed a strong dynamism in rollouts and migration in 2015 (Antel, ETB)

16. Forecasts up to 2020

17. FTTH/B LATAM market from 2015 to 2020
• More than 9.7 million subscribers for 41 million Homes Passed in 2020
0
2
4
6
8
10
2015 2016 2017 2018 2019 2020
Million
TOTAL FTTH/B subscribers
0
10
20
30
40
50
2015 2016 2017 2018 2019 2020
Million
TOTAL FTTH/B Homes PassedSource: IDATE for FTTH Council LATAM Chapter

18. FTTH/B LATAM forecasts per main market
Source: IDATE for FTTH Council LATAM Chapter

19. FTTH/B LATAM forecasts per main market
Source: IDATE for FTTH Council LATAM Chapter

20. FTTH/B LATAM forecasts per main market
Source: IDATE for FTTH Council LATAM Chapter

21. FTTH/B LATAM forecasts per main market
Source: IDATE for FTTH Council LATAM Chapter

22. • The trend is those countries is less dynamic than we
could expect one year ago: demographic characteristics,
economic situation, market consolidation… can explain why
the market is still embryonic there.
• Barbados, Jamaica, Paraguay, Puerto Rico and Trinidad
& Tobago are the most relevant markets and will
continue to lead the FTTH/B market in the region in
2020
• C&W’s acquisition of Columbus led to the emergence of
a regional player leading the FTTx market in the
Caribbean's, operating mainly under the Flow brand.
FTTH/B LATAM forecasts in the other markets1
Source: IDATE for FTTH Council LATAM Chapter
1 Barbados, Bolivia, Dominican Republic, Grenada, Jamaica, Puerto Rico, Trinidad and Tobago, Paraguay, Peru, Venezuela
At end 2020:
=> 162,000 FTTH/B subscribers
=> ~584,000 FTTH/B Homes Passed

23. Thank you !
 Contact
Valérie CHAILLOU
Director of Studies
+33 467 144 464
v.chaillou@idate.org
 Contact
Virginie BLACHERE
Consultant
+33 467 144 424
v.blachere@idate.org
 Contact
Roland MONTAGNE
Director, Principal Analyst
+33 680 850 480
r.montagne@idate.org