Trade conferences are like orchestras: they create collectively many sounds which can be laborious for the untrained ear to distinguish.
We at TeleGeography are well-equipped to take heed to the numerous melodies sung at telecom business gatherings. Most not too long ago, I joined colleagues in São Paulo to debate regional traits on the Capability LATAM occasion.
When you couldn’t make it to Brazil this 12 months—or you’re nonetheless piecing collectively every part you heard on the convention—there are 4 key notes I’d emphasize.
My Truthful Community Expansions
Following a number of years of comparatively few submarine cable tasks in Latin America, the state of affairs is starting to shift. A number of new submarine cable techniques are within the planning course of, with some cables almost prepared to start laying cable on the ocean ground.
As we mentioned at Capability LATAM final 12 months, connectivity to Mexico is a crucial issue shaping the place these new cables will land. A number of of the deliberate cable techniques that we heard about at this 12 months’s occasion embody TAM-1 (anticipated to be prepared for service in 2025), CSN-1 (2026), TIKAL-AMX3 (2026), and MANTA (2027). Mixed with the announcement of CSN-2—which is able to incorporate connectivity between Mexico and the U.S. into Telconet’s Carnival system—we heard loads concerning the sturdy demand to attach information facilities round Querétaro, Mexico.
There are nonetheless some unanswered questions on how the ability grid will maintain the speedy progress of information facilities in Central Mexico. But it surely appears clear that the necessity for improved connectivity within the area is a broadly shared precedence.
The Phantom of Diminishing Wavelength Costs
It’s hardly a novel remark to notice that the worth of worldwide wavelengths is falling. However in some markets, worth erosion is much more pronounced than common.
Miami–São Paulo is nicely often known as the first transport route between Latin America and the USA. And with its plentiful provide plus well-saturated competitors, costs on that route are repeatedly in regular decline. From 2022-2025, 100 Gbps on Miami–São Paulo fell 18%, compounded yearly. The under determine reveals normal traits for this capability’s costs all through the area.
2022-2025 Capability Pricing
Different routes in Latin America are seeing equally quick worth erosion. For instance, Bogotá–Miami and Lima–Miami each noticed weighted median costs for 100 Gbps fall 19% from 2022-2025, compounded yearly. These are two markets that had been usually talked about as notably lively. And for Buenos Aires–Miami, the common worth for 100 Gbps fell 23%, compounded yearly over the identical interval.
These markets and others will expertise additional worth erosion as new submarine cable techniques come on-line. Some notable examples embody Firmina, CSN-1, CSN-2, TAM-1, MANTA, TIKAL/AMX3, Lobster, and Venture Waterworth.
Little Store of 400 Gbps Gross sales
Whereas costs are falling, demand for worldwide connectivity continues to develop. Although in Latin America, the speed of demand progress has decelerated. That helps clarify—no less than partly—why the adoption of 400 Gbps wavelengths within the area has been sluggish to develop.
We’ve heard of 400 Gbps gross sales occurring on main routes like Miami–São Paulo and Dallas–Mexico Metropolis. On the latter route, for instance, carriers providing 400 Gbps have reported costs between 3 to three.5 instances that of 100 Gbps. However 100 Gbps continues to be the most typical capability in wholesale transactions and is more likely to keep that approach for the foreseeable future.
We count on hyperscalers to be a catalyst for 400 Gbps wavelength adoption within the area. In the intervening time, hyperscalers are typically greatest positioned to barter giant contract phrases and buy at that stage of capability. As capability necessities improve and extra forms of shoppers develop into excited about 400 Gbps connectivity, we count on value benefits over 100 Gbps to enhance.
The Sound of Asset Divestment
Market consolidation was one other widespread matter at Capability Latin America 2025. And the exit of Telefónica and InterNexa from a number of key Latin American markets was maybe essentially the most outstanding instance of this.
As we’ve coated beforehand, Telefónica’s profile in Latin America has shifted drastically. Whereas the long-term implications of those adjustments will differ by market, the general image displays evolving funding patterns within the area.
Equally, InterNexa’s shift away from key Latin American markets—specifically, Chile, Brazil, and Argentina—signifies some carriers are prioritizing threat minimization over portfolio progress in the intervening time. And contemplating Gold Knowledge’s comparable exit from Panama, it’s clear that this sample isn’t restricted to any single firm.
A main takeaway is that this area is seeing each new infrastructure and aggressive pricing arrive in a spread of markets, not simply well-established ones like Brazil. As these dynamics proceed to evolve, we’ll take note of who’s promoting—and who’s shopping for—spine connectivity to and inside Latin America, the Caribbean, and past.
Naturally, this information is already making its approach into our analysis, notably our pricing instruments. I like to recommend taking a peek at a few of our newest updates to see this intel in motion. Or scope out my colleague Juan Velandia’s presentation on the state of the Latin American market.
