Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, October 18, 2017

2017 Argentina Internet Map

Mega-merger and ultra-broadband demand reconfigure the market

2017 Argentina Internet Map - Credit: © 2017 Grupo Convergencia
2017 Argentina Internet Map - Credit: © 2017 Grupo Convergencia

The Internet market changed markedly this year. Three factors stand out as novelties; in the first place the merger Telecom-Cablevisión, that shakes the scene of the great players. Then, the impact of the Arsat Federal Internet Plan, which brought fiber to almost 300 localities contributing competitiveness and lower wholesale prices. And finally, the decision of more than a hundred ISPs that already deploy fiber to the home to meet the sustained increase in the demand for ultra broadband. Also notable is an increase in Cabase IXP that, in addition, caches more global services in NAPs.

Telefónica and Telecom continue to be the main providers of ISP connectivity, with 291 and 254 clients respectively, according to the information gathered for this Map. They are followed by Silica, with 149 and Claro with 88. Arsat, with its Federal Internet Plan, provides more than 60 ISPs. This year also highlights the growth of conglomerates as Interconnectable Network, which provides connectivity to 52 cablers; SAPEM Ecom (10 ISP) and Refsa (12 ISP) or the cooperative Huinca Renancó (10 ISP).

At the end of this edition, Arsat's Federal Internet Plan already had 285 connected localities, out of the 1,300 that are in the pipeline. Seven years after the construction of the network began, the presence of Arsat in the connectivity of the country is notable in this Map.

This is partly explained by the flat connectivity rate of the state-owned company, which is US $ 18 per mega, which contributed to a decrease in the average price per mega of the other suppliers in the localities where the fiber arrived. According to Convergencia Research, in the localities connected to the Federal Internet Plan, the average price of the mega wholesale IP traffic decreased by 50% between the last quarter of 2016 and the same period of 2015.

In the smaller localities (less than 20,000 inhabitants), the reduction was 52%, because in some cases before the arrival of Arsat there was no competition or a supplier arriving with fiber. In medium-sized cities (up to 100,000 inhabitants) the drop was 47%. And in the large (more than 100,000 inhabitants) reached 50% year-on-year.

Since May, Arsat has offered a multipoint internet service that allows ISPs that already hire IP traffic to acquire transport to bring connectivity to other smaller locations within the Federal Internet Plan. The service costs US $ 4 per MB for locations of up to 3,000 inhabitants and US $ 5.5 per MB for those of 5,000.

In August, the Naps network in Cabase reached 27 points of traffic exchange with 395 members, who together traffic 570.9 GB. In the last year were added the Naps de Resistencia, Salta, Rio Gallegos, West GBA, San Juan and Tandil. In addition, they incorporated Facebook servers into the network, to traffic up to 40 GB in the central routing.

The merger that mobilized the entire industry has a special impact on the broadband market. The union between Telecom and Cablevisión will generate monopoly markets in some cities. The news shook large competitors, such as Telefonica or Claro, that will intensify their investments in fiber and rethink strategies.

The connectivity of the country is marked by the renewal of submarine cables that arrive at Las Toninas. This year, Grupo Werthein and Seabras Group announced that through ARBR they will connect the 2,000 kilometers between Las Toninas and Praia Grande of Brazil by the second half of 2018 with an investment of US $ 70 million. When the ARBR comes into operation, the Telxius Sam-1 cable from Telefonica that connects Argentina to Florida, United States, will be over 17 years old. The Atlantis-2 that goes to Portugal will be about 19 years old. The Level 3 SAC, which reaches the Virgin Islands, will have more than 18 years and Unisur between Argentina and Uruguay will be almost 24 years old. The only young cable, with seven years, is the Bicentennial, which connects only Argentina and Uruguay.

Comprar mapa