Broadband Connections Grow 11.7 Percent in Colombia During First Half of 2010

Number of Connections With Speeds of 1 Megabit per Second or Higher Increases; Broadband Penetration Outside Bogota Improves

BOGOTA, Colombia, – Cisco announced today the results of a new Cisco® Broadband Barometer study, reporting a growth of 11.7 percent in the number of fixed broadband connections in Colombia during the first six months of 2010.

According to the study, commissioned by Cisco and conducted by the independent research company IDC, 251,367 new fixed broadband connections were added in Colombia during the first six months of 2010, reaching a total of 2,392,906 fixed broadband connections, which represents a penetration of 5.26 per 100 inhabitants. While presenting solid growth, Colombia’s broadband penetration is still much lower than the broadband penetration in other Latin American countries, such as Chile (9.7 percent), Argentina (9.3 percent) and Uruguay (8.5 percent).

According to the study, the expansion of new players to new regions is accelerating competition in broadband offers and, as a result, accelerating adoption.

The Cisco Broadband Barometer study also noted that the new fiber optic projects in the country’s interior are expected to accelerate broadband adoption in remote areas.
Highlights:

* Almost half (44 percent) of the broadband fixed connections are concentrated in Bogota, where broadband penetration is 14.2 per 100 habitants.
* Bogota experienced a growth of 36 percent in the number of broadband connections during the first six months of 2010.
* More than half (54.8 percent) of the connections have speeds of 512 kilobits per second and 37.4 percent have speeds higher than 1 megabit per second. It is expected that the number of higher-speed connections will increase quickly because of a new regulation that establishes the minimum broadband speed in Colombia at 1 Mbps as of August 2010.
* Average pricing in the Colombian broadband market decreased slightly for minimum-speed connections such as ADSL, from 53,000 pesos to 50,500 pesos per month. The highest-speed offering at 4 Mbps also decreased in price, from 162,000 pesos to 125,600 pesos per month.
* Cable modem connections were also reduced in price, both for minimum and maximum speeds. The minimum 1 Mbps speed dropped from 72,000 pesos to 50,000 pesos per month on average, while the maximum 4 Mbps speed dropped from 115,000 pesos to 100,000 pesos.
* During the first half of 2010, a growth of 31.3 percent was generated in mobile broadband connections.
* As of June 2010 mobile data subscriptions reached a total of 1,315,000. Half (51 percent) of the mobile broadband connections are concentrated in Bogota, and 49 percent are in the rest of the country.

Supporting Quotes:

* Simbad Ceballos, general manager, Cisco Colombia

“While Colombia presented solid growth in fixed broadband connections, we still have a lot of work to do to catch up with the region overall. The new government ´Vive Digital´ agenda is a step in the right direction to accelerate the deployment of high-speed broadband networks and ICT adoption.”

“High-speed networks offer a unique and profitable opportunity to increase productivity. According to research from the World Bank, an increase of 10 percent in Internet connections at a national level corresponds to an increase in gross domestic product (GDP) of 1.3 percent.”

About Barometer

Cisco Broadband Barometer is a Cisco initiative to promote and encourage broadband connectivity in Latin America. It sets goals regarding the number of connections, establishes a periodical measurement of progress, publishes these results, and develops strategies with service providers and governments.

Currently, Cisco Barometer measures broadband growth in Argentina, Chile, Brazil, Colombia, Costa Rica, Venezuela, Peru and Uruguay. The Barometer has been supported in each case by the national government.
About Cisco

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Cisco celebrates 25 years of technological innovation, operating excellence and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com.