Market Trends of Argentina Telecom Industry
This section covers the major market trends shaping the Argentina Telecom Market according to our research experts:
Robust Internet Coverage
- In Argentina, people have unrestricted access to the internet and can interact freely on social media. Argentina has one of the highest internet penetrations in Latin America. In the early months of this year, the country had approximately 38 million internet users, and 83 % of Argentina's population used the internet, according to Kepio's research. Between the last and current years, there was an increase of 1.7 million (+4.7%) internet users in Argentina. The number of people connected to the internet is predicted to reach 42 million users by the end of the forecast period.
- In the first quarter of the current year, there were 7.84 million fixed-line internet subscribers, up 2% from the previous quarter. During the same time, 34.78 million mobile internet users were up 9.9% from the prior year. Only 17% of all fixed-line internet connections in Argentina as of late last year are fiber-optic, according to data from the Argentine Internet Chamber (CABASE). In June last year, 73% of all Argentina's connections had speeds greater than six megabits per second (Mbps); 55% had speeds greater than 20 Mbps; 7% had speeds between 10 and 20 Mbps, and 11% had speeds between 6 and 10 Mbps.
- A sum of USD 100 million has been authorized by the Inter-American Development Bank (IDB) for a program to support internet access and digitization in Argentina. The operation's objective is to expand the National Data Center's capacity, enhance digital capabilities for residents in linked regions, and enhance digital connectivity infrastructure in remote places. Notably, the Program for the Development of the Federal Fiber Optic Network (REFEFO) would also be funding the extension and outfitting of infrastructure to connect 258 rural locations with fiber optics.
- Since the pandemic began, the internet has shown to be a vital instrument for the population's production, employment, and education. According to a recent study, two out of every three families in metropolitan conglomerations in Argentina have at least one computer, and nine out of ten of these homes have Internet connectivity. At the same time, internet usage is expanding in Argentina. More than 70% of the population in the South American nation is believed to have internet connectivity.
- Per the Speedtest report, the current year's download and upload speeds of fixed broadband internet in Argentina were faster than those of mobile. The median fixed broadband internet download speed at that time was 47.19 Mbps, while the upload speed was 19.65 Mbps.
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Demand of OTT and SVOD
- Argentina's SVOD and OTT market has been booming since the arrival of Netflix at the end of 2011. Netflix and some minor players dominated the Argentina OTT and video streaming market. However, with the launch of Amazon Prime Video and the implementation of agreements with Pay TV providers, the market witnessed some competition. The entry of Disney's services (Disney+ and Star+) and HBO Max together changed the industry model last year.
- Considering the region's tremendous potential and developing market conditions, particularly in nations like Brazil, Argentina, and Mexico, several OTT and VOD providers are expanding there. Argentina is one of Latin America's smaller but fastest-growing OTT markets and has the highest internet penetration in Latin America. The media and entertainment sector has experienced significant development, which has sped up the creation of top-notch media content and supported market expansion in Argentina.
- Furthermore, the market is also being driven by consumers' shifting preferences for OTT platforms over historically popular cable and satellite television sets due to their increased convenience, higher connectivity, better accessibility, etc. Additionally, several OTT and SVOD service providers are continuously moving towards digital transformation and persistently applying artificial intelligence (AI) to assess user preferences and provide tailored content, enhancing the overall user experience.
- Business models must adapt to new technology. The Internet is now in our pockets, thanks to smartphones. With the increased use of smartphones in the country, OTT applications have significantly improved online conversations and interactions. Additionally, the COVID-19 epidemic has accelerated the digitization of daily life and business around the globe. The upsurge in the usage of OTT services platforms, such as Zoom, Skype, Messenger, and WhatsApp, for audio and video chats was most widely observed.
- According to Argentine Internet Chamber's report, 13% of Argentina's OTT content consumption was attributed to Netflix during the first three months of last year. Market share for YouTube and YouTube Premium as a whole was 14%. Similarly, at the start of last year, Netflix and YouTube had the highest usage rates among online households in Argentina.
