Latin America Bandwidth Market Assessment

What are the most recent tendencies in Latin America’s wavelength market?

We’ve been analyzing tendencies within the international wavelength market for many years, with knowledge in our Wavelengths Pricing platform going again to 1999. This put up gives an in-depth take a look at Latin America, analyzing the evolution of connectivity pricing and outlining key subjects related to wavelength pricing dynamics throughout the area.

Wavelength costs proceed to drop

The transport market in Latin America continues to be dynamic. On key routes from hubs like São Paulo, Bogotá, and Mexico Metropolis to america, high-capacity gross sales at low per-unit prices are typical. But in areas with much less demand, much less established infrastructure, or extra restricted provider competitors, 10 Gbps capacities and decrease are nonetheless widespread.

Typically talking, a constant pattern throughout Latin America is that costs are declining steadily. Throughout all routes we monitor connecting the U.S. and Latin America, the weighted median worth for 100 Gbps wavelengths fell a median of 20%, compounded yearly, from 2022-2025. The weighted median worth for 10 Gbps, compared, fell simply 12% throughout that very same interval. Though 10 Gbps is a vital product in lots of markets, we extra usually see 100 Gbps because the capability of selection in Latin America. And within the markets the place provide and competitors are sturdy, the price of 100 Gbps has fallen impressively.

Worth erosion stays commonplace throughout all main routes in Latin America. However the price of abrasion varies by route. The under determine helps us visualize this higher by exhibiting latest worth decline on key Latin American routes. From 2022-2025, we noticed the weighted median worth of 100 Gbps on these routes fall a median of 21%, compounded yearly.

Weighted Median 100 Gbps Wavelength Costs on Key Latin American Routes

As you’ll be able to see above, Miami–São Paulo and Dallas–Mexico Metropolis proceed to be essentially the most competitively priced routes within the area. These are each very established markets the place provide, demand, and competitors are ample. One noteworthy distinction between them is that Dallas–Mexico is a shorter terrestrial route, which ends up in decrease prices (and, in flip, decrease costs for consumers) than a subsea route like Miami–São Paulo.

Individually, steep worth erosion has introduced the Buenos Aires–Miami and Lima–Miami routes according to others within the area. From 2022-2025, the weighted median worth of 100 Gbps on Buenos Aires–Miami fell 30%, compounded yearly. For Lima–Miami the worth of 100 Gbps fell 22% over the identical time interval. This comes as each markets have seen elevated competitors and international carriers providing extremely aggressive costs.

Bogotá–Miami connectivity can also be competitively priced and can possible get even cheaper. The weighted median price for 100 Gbps on Bogotá–Miami in This fall 2025 was down 21%, compounded yearly, from 2022.

Market vary

Evaluating common costs on completely different routes is a helpful train. Equally, understanding the vary of costs on a given route will help reveal deeper dynamics at play. Within the under determine we see such a worth vary for Miami–São Paulo from 2022-2025. Let’s take a look and talk about what the info inform us.

Weighted Median & Worth Vary for 100 Gbps Wavelengths on Miami–São Paulo

For a few years, Miami–São Paulo has been Latin America’s de facto major route for connecting to america. In consequence, this route has attracted varied rivals promoting capability at a spread of costs. And over the previous few years, the vary of costs has stayed comparatively constant. In This fall 2022, the best worth reported to us was $45,000, round thrice greater than our reported low. That’s practically the identical as in This fall 2025, when our most worth for Miami–São Paulo of $20,000 was 4 instances the low. Throughout that three-year span, worth decline was quicker for the minimal worth (-30%) than for the weighted median (-21%) or most (-24%). This helps what we’ve heard from contacts within the business who observe that costs on this route have turn out to be extraordinarily aggressive. Though Miami–São Paulo is a well-established market with excessive limitations to entry, the worth for 100 Gbps transport retains falling at spectacular charges.

What’s subsequent for bandwidth pricing in Latin America

After a number of years of gradual progress, Latin America and the Caribbean are starting to see a wave of latest subsea programs deliver further capability to {the marketplace}. This consists of lately launched cables like Firmina and others like CSN-1, TAM-1, MANTA, TIKAL/AMX-3, CELIA, and Undertaking Waterworth anticipated to enter service within the coming one to 2 years. This elevated provide will push 100 Gbps costs downward, particularly on routes with ample competitors. After that, we anticipate 400 Gbps gross sales to turn out to be extra widespread on established routes with robust demand within the area.

On two such routes, we anticipate worth erosion to stay regular within the coming years. On Miami–São Paulo, we forecast 100 Gbps costs to fall 12%, compounded yearly from 2025 to 2032. And on Bogotá–Miami we anticipate erosion to be barely faster over that point interval at 16%.

Forecasted 100 & 400 Gbps CAGR Worth Decline on Key Latin American Routes

As soon as the 400 Gbps market on these routes is best established, we anticipate worth erosion to outpace that of 100 Gbps. From 2025-2032, we forecast 400 Gbps costs will fall a median of 15% on Miami–São Paulo and 20% on Bogotá–Miami, compounded yearly.

Past these established markets, we anticipate costs to proceed to fall all through the area. And in markets the place new capability is predicted to come back on-line, larger capability purchases will turn out to be extra engaging to prospects. For international locations like Mexico, which means 400 Gbps gross sales will turn out to be extra widespread. In smaller markets like most Caribbean islands, that can ultimately imply 100 Gbps wavelengths are offered extra regularly.

You could find this knowledge and evaluation and extra in our Wavelengths Pricing platform. Check out the video tour under. (And you can even try the opposite pricing we’ve got obtainable in our Community Pricing Database.)