SNL Kagan: Latin American DTH, IPTV to Grow

MONTEREY, April 17: A new
study from SNL Kagan says that investments by telecom companies such as
Telefónica and Telmex are expected to encourage digital pay-TV rollouts in
Latin America in 2008, with both players already notching up 4.8 million pay-TV
subscribers in the region at the end of 2007.

The new study, Global
Multichannel Special Report: Trends in LatAm Telecom Insurgence, explores the pay-TV competition in Latin America.
It notes that heavyweights like Telefónica and Telmex are capitalizing on
market opportunities created by digital cable's slow emergence in the region.

Despite an uncertain
regulatory environment, both players have been actively entering new markets.
According to SNL Kagan, Telefónica's Latin American pay-TV investments include
cable and MMDS buyouts, as well as launches of independent DTH platforms.
Telmex has grown Latin American TV subscriptions via DTH or cable buyouts.
Throughout Latin America, both of these players and local telecoms are
aggressively pursuing triple-play strategies to take on incumbent MSOs and each
other. Along with others, Telefónica and Telmex are expected to develop an
increasingly significant base of pay-TV subscribers, supported by regulatory
changes and continued CapEx funded by their lucrative fixed-voice, broadband
and cellular phone businesses.

"Heavy investments
over the last two years have positioned Telefónica and Telmex in many of the
region's most active markets, including Brazil, Mexico, Colombia, Argentina,
Chile and Peru," said Josh Hizon, an analyst at SNL Kagan. "With
accelerated spending in 2007, Telefónica's and Telmex's moves have invigorated
LatAm's digital TV outlook, and even more capital commitments are pledged in
2008."

—By Irene Lew