Business conferences are like orchestras: they bring about 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 trade gatherings. Most lately, I joined colleagues in São Paulo to debate regional developments on the Capability LATAM occasion.
In case you couldn’t make it to Brazil this yr—or you’re nonetheless piecing collectively all the things you heard on the convention—there are 4 key notes I’d emphasize.
My Honest Community Expansions
Following a number of years of comparatively few submarine cable tasks in Latin America, the situation is starting to shift. A number of new submarine cable programs are within the planning course of, with some cables practically prepared to start laying cable on the ocean flooring.
As we mentioned at Capability LATAM final yr, connectivity to Mexico is a crucial issue shaping the place these new cables will land. A couple of of the deliberate cable programs that we heard about at this yr’s occasion embrace 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 can incorporate connectivity between Mexico and the U.S. into Telconet’s Carnival system—we heard lots concerning the sturdy demand to attach information facilities round Querétaro, Mexico.
There are nonetheless some unanswered questions on how the facility grid will maintain the fast development of information facilities in Central Mexico. Nevertheless it 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 statement to notice that the worth of worldwide wavelengths is falling. However in some markets, value erosion is much more pronounced than regular.
Miami–São Paulo is nicely generally known as the first transport route between Latin America and america. And with its ample provide plus well-saturated competitors, costs on that route are commonly in regular decline. From 2022-2025, 100 Gbps on Miami–São Paulo fell 18%, compounded yearly. The under determine reveals normal developments for this capability’s costs all through the area.
2022-2025 Capability Pricing
Different routes in Latin America are seeing equally quick value 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 typically talked about as notably energetic. And for Buenos Aires–Miami, the typical value for 100 Gbps fell 23%, compounded yearly over the identical interval.
These markets and others will expertise additional value erosion as new submarine cable programs come on-line. Some notable examples embrace Firmina, CSN-1, CSN-2, TAM-1, MANTA, TIKAL/AMX3, Lobster, and Challenge 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 development has decelerated. That helps clarify—no less than partially—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 occasions that of 100 Gbps. However 100 Gbps continues to be the most typical capability in wholesale transactions and is prone 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 mean time, hyperscalers are typically finest positioned to barter giant contract phrases and buy at that stage of capability. As capability necessities enhance and extra varieties of shoppers develop into enthusiastic about 400 Gbps connectivity, we count on price benefits over 100 Gbps to enhance.
The Sound of Asset Divestment
Market consolidation was one other widespread subject at Capability Latin America 2025. And the exit of Telefónica and InterNexa from a number of key Latin American markets was maybe probably the most distinguished instance of this.
As we’ve coated beforehand, Telefónica’s profile in Latin America has shifted drastically. Whereas the long-term implications of those modifications will range 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 development for the time being. And contemplating Gold Knowledge’s related exit from Panama, it’s clear that this sample is just not restricted to any single firm.
A major takeaway is that this area is seeing each new infrastructure and aggressive pricing arrive in a variety 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.
