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Broadband Grew 14 Percent in Colombia During the First Half of 2009


Country Reaches 4.65 Percent Penetration as Regions Outside Bogota Gain Broadband Market Share

BOGOTA, Colombia, Cisco announced today the results of the Cisco Broadband Barometer, which reported a 14 percent growth in broadband connections in Colombia from January to June 2009.

According to the study, 254,000 broadband connections were added during the first half of the year, when the country had reached 2,066,742 connections and a 4.65 percent penetration.

As shown by the barometer, growth was reported outside the metropolitan areas. The participation of the regions went from 16.6 percent to 29.9 percent of the total broadband market.

The first edition of Cisco’s Broadband Barometer established a country goal of 3.5 million connections by 2010. Colombia will need to gain nearly 1.5 million additional connections by December 2010 to reach this goal.
Key Results:

* More than half (59.3 percent) of broadband connections are between speeds of 512 kilobits per second and 1 megabit per second. Connections with speeds of 1 Mbps or higher represent 29 percent of the market and will continue to increase. This trend was also shown in the Cisco Visual Networking Index study, which predicts that Internet traffic will increase between 2007 and 2012, due mainly to video.
* The market analysis by segment conducted during the first half of 2009 shows that home connectivity represents 80 percent of total broadband connections, followed by the enterprise segment with nearly 20 percent.
* The home segment grew 14.8 percent. The strategy of service providers to take advantage of TV subscriber contracts generated the increase.
* The enterprise segment grew 10.6 percent during the first half of 2009.
* Small and medium-sized businesses account for 19,5 percent of broadband connections in the country.
* Three-quarters (75 percent) of broadband connections are concentrated in metropolitan areas, and only 25 percent are in the rest of the country.
* Bogota continues to have the greatest broadband penetration in the country (12.30 percent).
* Antioquia (6.41 percent), Boyaca (5.87 percent) and Eje Cafetero (4.05 percent) were the regions that led in broadband penetration during the first half of this year.
* The regions with the lowest broadband penetration were Cundinamarca (3.31 percent) and Valle-Choco-Nariño (2.18 percent).
* ADSL-type connections and fixed wireless connections had a 12.9 percent growth. Cable modem connections grew 16.5 percent, and Internet dedicated lines (dedicated IP) decreased by 1 percent.
* The mobile broadband market in Colombia grew 185 percent during the first half of this year. The country reached 704,000 mobile broadband connections.
* Mobile broadband distribution by segments reveals that the home segment leads with 88 percent of all connections. The enterprise segment represented 12 percent of the market.
* According to World Bank, high-speed broadband networks will enable the creation of new companies that could produce software, applications and information technology services. The information technology services industry can address key development challenges by creating jobs, increasing productivity and exports, and promoting social inclusion.

Supporting Quotes:

* Simbad Ceballos, general manager, Cisco Colombia

“Broadband connections offer a unique and profitable opportunity to increase productivity and competitiveness, in addition to providing a way to surpass physical and geographic restrictions and offer services to citizens. According to studies done by the World Bank, a 10 point percentage increase in broadband Internet connections corresponds to a 1.3 point percentage increase in economic growth.”

“Accelerating broadband penetration is a country goal that must have support by both public and private sectors. Colombia has had a constant growth in terms of numbers of connections. Nonetheless, it is critical to increase efforts to provide broadband to the masses and reach penetration percentages that are competitive on a global level. Also, improving the quality of connections and providing access to rural areas of the country are necessary to improve the connectivity conditions in Colombia.”


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