Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, April 14, 2021

NPlay Southern Cone 2021

Neutral networks to be instrumental in leveraging broadband growth

Much was said yesterday, on the second day of NPlay Southern Cone 2021, in relation to the progress of neutral networks. As Eduardo Jedruch, Director of Regulations for the Fiber Broadband Association LATAM Chapter said, operators of these networks are an alternative to achieve operational efficiencies. Four architectures are distinguished for this multi-operator or multi-service purpose: network slicing; centralized splitting; TAP splitting and distributed splitting. According to Jedruch, the Argentine market joins the growth of neutral networks throughout the region, especially in the last two years.

Among leading actors in this segment, American Tower has already completed deployments in San Martín, Escobar and Vicente López, in the Buenos Aires suburbs. "We are not in other areas of the country because we do not receive requests for the service," confided Josefina Hernández Gascón, director of legal and Public Affairs of American Tower for Argentina and Paraguay. From Metrotel, Germán Garay, Director of Technology, referred to the strong strategy in CABA, in greenfield areas, without other fiber operators. Outside the AMBA, Metrotel's first experience was in Olavarría, where very high penetrations have been achieved.

On the impact of neutral networks in the local broadband market, from American Tower they have placed cold cloths on the idea. "The answer is a "neither." We have an impact because we provide financing, but in Argentina operators have an individualistic strategy of ownership of towers and networks: that is why growth was not allowed and the preponderance of neutrality. It is due to political strategy rather than mistrust in the model, which is fully proven,” said Hernández Gascón.

Another neutral operator that spoke to Grupo Convergencia in the event is Telxius, owned by Telefónica (50.01%), KKR (40%) and Pontegadea (9.99%). Pablo Baudry, General Manager of Telxius Torres Argentina, has 350 own towers in the country, in particular located in AMBA. "We hope to build 40 towers for Telefónica this year," added the executive.

In all cases, these are sites prepared to house more than one operator. Telxius' local clients include Claro, Movistar, Directv, Sigfox, Yeap! and personal.

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