4G LTE in Latin America to 'Accelerate' in 2014, LTE Subscriber Adoptions to Reach 23 Million By 2016

By Michael Oleaga First Posted: Apr 22, 2014 01:41 AM EDT

According to a market intelligence company, 4G LTE technology will improve and grow across Latin America during 2014.

ABI Research reported a 10 percent growth is expected in the mobile telecommunications capital expenditure in Latin America, which would rise to $6.1 billion. With the growth of mobile telecommunications, upgrades and expansion of 3G WCDMA and 4G LTE coverage will lead to radio access network-related spending garnering 40 percent of the capital expenditure. Investments are also proving beneficial in the small cell base stations as a 40 percent year-on-year growth is projected in 2014, which would equate to $484 million.

By 2016, LTE subscriber adoptions should grow from 2.33 million to 23 million. A reason for the increase of LTE subscriber adoptions is due to growing demand for Internet access across the Latin American region without the need of DSL or cable Internet services.

"Mobile telecom capital expenditure in Latin America is expected to grow rapidly in 2014 as investment in 4G LTE starts to accelerate," said ABI Research Vice President for Core Forecasting Jake Saunders. "Significant amounts of capital expenditure are still required to build out 4G LTE coverage. In particular, mobile cellular CTOs are prioritizing investment in the core network functions as Internet packet traffic and value-added 3G and 4G services are playing an increasingly prominent role in the telecom services of the region."

In regards to investment plans that might enhance mobile telecommunications in Latin America, Telefónica confirmed it's consolidating its 3G network infrastructure and deployment of fiber with investments of $200 million in Chile over the next three years. Meanwhile in Peru, Telefónica plans to invest $250 million for LTE-related infrastructure.

In Colombia, Avantel announced, during the fourth quarter of 2013, it will invest $250 million for its first stage of 4G technology. In Brazil, TIM Brazil initiated its first 150 small cells to enhance signal transmission capacity for its mobile network during the fourth quarter of 2013. No updates have been provided for the telecommunications company in Brazil or Colombia currently in 2014, however, ABI Research reassured the demand for mobile voice and broadband does exist.

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