Dark Fibre, Rights of Way and Telehousing in Latin America

This study by The Phillips Group has found that Dark Fibre is key in the race to link countries in Latin America. Much of the fibre currently available is controlled by utilities in the region, who could collectively move to establish a pan American network.

Results of an extensive qualitative survey across 9 countries, reveals significant reserves of Dark Fibre of varying quality. In common with developments noted in other regional studies by The Phillips Group, utility companies often control large segments of Dark Fibre networks. Latin America is no exception, but the study found evidence of a significant volume of fibre lay planned by new players particularly in metropolitan zones.

However, regulation and availability of rights of way from country to country, reveal marked differences that sometimes militate against new entrants. Applications to build new networks were often subject to convoluted approval procedures - Chile and Argentina were the exception. The study identifies the process and governance of these procedures in each of the countries included (Argentina, Brazil, Colombia, Chile, Dominican Republic, Mexico, Peru, Panama, and Venezuela).

"Fibre optic network deployment driven by deregulation taking place across the continent will precipitate the evolution of a wholesale market and create enormous opportunities for new market entrants", commented Pablo Diantina, Research Consultant for Latin American Markets and lead consultant for the study at The Phillips Group.

Further new capacity will become available through submarine cables now under construction, network expansion by the utility sector, and terrestrial build by entrants such as Global Crossing. The study suggests the scale of fibre build will impact the "controlled and extremely inflated prices for international connections" and predicts that it will significantly change the way companies in the region use telecommunications. A fall in monopoly tariffs will support economic expansion and Internet growth.

The study projects very substantial Dark Fibre build over the next three years, particularly in Brazil.

Telehousing is another area of significant growth examined in the study. Plans exist to build carrier neutral telehouse facilities in Mexico, Argentina, Chile and Venezuela.

Telecom and SBC, new Dark Fibre markets will lead to a significant weakening of the their position. Through linking cross-border Dark Fibre, the study projects players controlling a pan American network will be able to leverage competitive advantages not available to owners of purely national networks. Growth is occurring in Inter-regional telecommunications and Internet traffic, and dependency on US based Internet hosts will gradually decline, a pattern already noted by The Phillips Group in Europe and Asia.

Executive Summary

1. INTRODUCTION

2. RIGHTS OF WAY

Definition.

2.1 BRAZIL: RIGHTS OF WAY

Regulation for the use of public paths

Difficulties

Time scale

2.1.1 Metros

Pricing for network ROW

2.1.2 Railways

2.1.3 Roads and Motorways (Rodovias)

Pricing

2.1.4 Electricity utilities

2.2 MEXICO: RIGHTS OF WAY

Building A Fibre Optic Network

Cost for Directional Digging

Cost for Traditional Digging

Licensing

Rights of Way tariffs are not always negotiable

2.2.1 Municipalities

Mexico D.F.

Monterrey

Other Cities

Committee for the Use of the Subsoil (CUS - Comite Para el Uso del Subsuelo)

Degradation of fibre optic cables

Differential sinking

Directional Canalisation

Posts

Vandalism and cable theft

Duct availability

2.2.2 Ducts

2.2.3 Railways (see maps section)

2.2.4 Electricity Utilities

2.2.5 Roads

2.2.6 Metros

2.3 ARGENTINA: RIGHTS OF WAY

Building A Fibre Optic Network

Licensing

Main conditions for obtaining a licence

2.3.1 Municipalities

Buenos Aires

Other Cities

2.3.2 National roads

Access of road network to Buenos Aires

2.3.3 Railways

Background

Railway Concessionaires (See maps section).

Metropolitan Railways

Cargo Railways

Provincial railways

2.3.4 Energy companies

2.3.5 Carriers

2.4 CHILE: RIGHTS OF WAY

Rights of Way

2.4.1 Municipalities

2.4.2 Metro and Railways

2.4.3 National roads

2.4.4 Gas utility

2.5. COLOMBIA: RIGHTS OF WAY

Rights of Way

2.5.1 Municipalities

Municipalidad de Bogota

2.5.2 National Roads and Railways

2.5.3 Gas and Oil Pipelines

2.5.4 Ducts

2.5.5 Posts

2.5.6 Electricity companies

2.6 VENEZUELA: RIGHTS OF WAY

Building A Fibre Optic Network

Rights of Way

2.6.1 Municipalities

Alcaldia de Caracas

Other cities

2.6.2 Metros and Railways

2.6.3 Electricity utilities

2.6.4 Roads

Ministry for Infrastructure

Toll Roads

2.6.5 Ducts and Pipelines
T2.6.6 Posts

2.7 PERU: RIGHTS OF WAY

Licensing

Long-distance licences

Local licences

Rights of Way

2.7.1 Municipalities

Lima

2.7.2 Metro and Railways

Railways

2.7.3 Ducts

2.7.4 Utilities

2.8 DOMINICAN REPUBLIC: RIGHTS OF WAY

Rights of Way

2.8.1 Electricity utility

2.8.2 Municipalities

2.8.3 Ducts

2.8.4 Railways

2.9 PANAMA: RIGHTS OF WAY

2.9.1 Electricity utilities

2.9.2 Gas pipelines

2.9.3 Roads and Motorways

2.9.4 Railways

2.9.5 Canals

3. DARK FIBRE

Fibre Market

3.1 LATIN AMERICAN DEVELOPMENTS

3.1.1 Intra Continental Networks: The Utilities' role

ANDEAN COUNTRIES

MERCOSUR

OPGW: the Utilities' Choice Fibre

3.2 BRAZIL: DARK FIBRE

Regulatory Framework

Traffic

Fibre Build

Access

Market Overview

Analysis

3.2.1 Electricity Utilities

3.2.2 Gas Utility

3.2.3 Railways

3.2.4 Carrier Service Providers and Operators

3.2.5 Brief company profiles and projects

3.3 MEXICO: DARK FIBRE

Regulator

Licence cost

Dark Fibre Prices

IP Telephony

Resale

Swapping Fibre

Alternatives To Building Networks

Data Market

Metropolitan Fibre Optic Networks

Fibre: The Mexican Glut?

Wholesale And Dark Fibre

Fibre Build

A Comparison with the USA Market

Market Opportunities

Tourist market

3.3.1 Carrier Service Providers and Operators

Dark fibre prices:

3.3.2 Utilities
3.3.3 Brief company and project profile

3.4 ARGENTINA: DARK FIBRE

Market Overview

Traffic

3.4.1 Carrier Service Providers and Operators

3.4.2 Utilities

3.5 CHILE: DARK FIBRE

Regulator

Fibre Build

Market Overview

3.5.1 Carrier Service Providers and Operators

3.5.2 Cable TV Networks

3.5.3 Infrastructure Construction and Support

3.6 COLOMBIA: DARK FIBRE

Regulator

Security

Market figures

Dark Fibre, Fibre Build and Availability

3.6.1 Main Fibre Optic Projects

3.6.2 Utilities

3.6.3 Oil companies

3.6.4 Carrier Service Providers and Operators

3.7 VENEZUELA: DARK FIBRE

Regulatory Framework

Market overview

3.7.1 Utilities

3.7.2 Metro

3.7.3 Carrier Service Providers and Operators

3.7.4 Cable TV operators

3.8 PERU: DARK FIBRE

Dark Fibre Price:

Security

Market Overview

Main traffic routes

3.8.1 Utilities

3.8.2 Carrier Service Providers and Operators

3.8.3 Brief company profiles

3.9 DOMINICAN REPUBLIC: DARK FIBRE

Bandwidth price

Regulator

Market overview

Market Potential

Traffic

Immigration

Fibre Build

3.9.1 Carrier Service Providers and Operators

3.9.2 Cable TV Operators

3.10 PANAMA: DARK FIBRE

Market Overview

Market Potential

3.10.1 Carrier Service Providers and Operators

4. TELEHOUSING IN LATIN AMERICA

Definition:

Telehousing key features

4.1 USA and European Telehouses plans for Latin America

4.2 MEXICO

4.3 ARGENTINA

Telehousing facilities in Argentina:

4.4 CHILE

4.5 VENEZUELA

4.5 PERU

5. SUBMARINE CABLES IN LATIN AMERICA

Submarine Cable Implementation Stages

Analysis

Bandwidth Impact in the Continent

5.1 COLOMBIA

5.2 DOMINICAN REPUBLIC

Cables on the island

Existing landing cables in the Dominican Republic:

Cables that will soon land in the Dominican Republic:

5.3 MEXICO

5.4 BRAZIL

5.5 OPERATIONAL CABLES

5.6 PROJECTS UNDER CONSTRUCTION

5.7 PROJECTS ANNOUNCED

CONCLUSIONS

Glossary

Speeds

Currency conversion table

Charts Showing Existing and Planned Fibre Kilometres

Appendix ROW Providers

List of Maps