FTTH in LATAM

Empowering Innovation through a better connectivity

Our Vision

Council’s Mission

Promote the adoption of quality FTTH Networks in Latin America as the Universal Access Platform for Bidirectional Broadband Services, Enabling the enhancement of the quality of living associated to improvements in Education, Health and Economic development.

In December 2015

> 3,65 M FTTH/B subscribers

> 20,1 M FTTH/B Homes Passed

Average Penetration Rate

18.1% (+1,5% at Dec 2014)

Growth Rate 2015/2014

+ 39% FTTH/B subscribers

+ 27% FTTH/B Homes Passed

FTTH/B subscribers trends • Mexico is now leading the LATAM FTTH/B market with 1.29 million subscribers

- +46% of subscribers yoy

- Telmex is leading the retail market (65% share, 45% connect rate)

- TotalPlay covers 14% of the households in the country and expects to have 7.5 million HP by end 2019 (22% share, 6,3%Connect rate)

• Brazil is just behind Mexico in the LATAM FTTH/B market with 1.25 subscribers

- +32% of subscribers yoy

- Telefónica is very active: investment plan of 25 million BRL (~6.3 million USD) between 2015 and 2017

- Hundreds of local ISPs involved, but in limited geographical rollouts

• Antel in Uruguay is one of the two most involved incumbents in the region (550,000 FTTH/B subs)

- Even if the trend of FTTH/B subscribers growth is decreasing at + 10% yoy (vs +101% in 2014 yoy), 40% of FTTH/B HP have opted for a service based on FTTH connection

- National coverage: the coverage is considered as exhaustive in Uruguay

- Among the leading countries in the global ranking with a penetration rate1 over 40% at end 2015

• Strong growth rates in smaller markets, confirming a general trend towards FTTH/B in the region

- Colombia +456% and Puerto Rico +340%!

- Ecuador +96%, Chile +34%

1Penetration rate = number of FTTH/B subscribers over total number of Households

FTTH/B Homes Passed distribution M

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7 countries with significant rollouts, among which FIVE with more than 1 million Homes Passed

Key Points

A new dimension for FTTH in LATAM

- A relative take off in the FTTH market since 2014, but at the scale of the countries

- 9 countries among 16 in the Global Ranking:

• Uruguay in the Top 5 in the world!

• 8 other countries with a penetration rate from 1% to 4%

Key Points • Demography represents a huge potential in LATAM:

- large cities with the huge advantage of high density of population

- … as well as small countries which can quickly become mature markets (Caribbean)

• The competition between cablecos and telcos is a driver for FTTH/B: but the consolidation that occurred in 2015 (C&W / Columbus Telecommunications) might slow down this phenomenon

• Low quality of existing copper as a driver: Telcos are betting on FTTH/B to promise innovative services and higher speed rates

• Several players are involved in FTTH/B market in different countries in LATAM

• In most of cases, FTTH/B and LTE are together deployed in LATAM

• Governments are pushing the FTTH/B market

– National Broadband plans are clear incentives but they need to focus quickly on FTTH/B

– Incumbents showed a strong dynamism in rollouts and migration in 2015 (Antel, ETB)

FTTH/B LATAM market from 2015 to 2020

The BOD

Eduardo Jedruch President BOD CommScope

Hector Moreno Finance Chairman EXFO

Ricardo Claro Marketing Director Corning

Nelson Saito PR Director Furukawa

Rogerio Lopes Technology Director Sumitomo Electric Lightwave

Reinaldo Jeronymo Regulations Director Prysmian Draka Brasil

Guilherme Fuhrken SCs Director CALIX

Key action points for 2016

• Education

• Communication and Promotion

• Support and Development to members

2017 LATAM Conference

MUCHAS GRACIAS!!

LOS ESPERAMOS EN BUENOS AIRES!