What are the most recent developments in Latin America’s wavelength market?
We’ve been analyzing developments within the world wavelength market for many years, with information in our Wavelengths Pricing platform going again to 1999. This submit offers an in-depth have a look at Latin America, analyzing the evolution of connectivity pricing and outlining key matters related to wavelength pricing dynamics throughout the area.
Wavelength costs proceed to drop
The transport market in Latin America continues to be dynamic. On key routes from hubs like São Paulo, Bogotá, and Mexico Metropolis to the US, high-capacity gross sales at low per-unit prices are typical. But in areas with much less demand, much less established infrastructure, or extra restricted service competitors, 10 Gbps capacities and decrease are nonetheless frequent.
Typically talking, a constant pattern throughout Latin America is that costs are declining steadily. Throughout all routes we observe connecting the U.S. and Latin America, the weighted median value for 100 Gbps wavelengths fell a median of 20%, compounded yearly, from 2022-2025. The weighted median value for 10 Gbps, as compared, fell simply 12% throughout that very same interval. Though 10 Gbps is a vital product in lots of markets, we extra typically see 100 Gbps because the capability of alternative in Latin America. And within the markets the place provide and competitors are strong, the price of 100 Gbps has fallen impressively.
Worth erosion stays commonplace throughout all main routes in Latin America. However the charge of abrasion varies by route. The beneath determine helps us visualize this higher by displaying current value decline on key Latin American routes. From 2022-2025, we noticed the weighted median value of 100 Gbps on these routes fall a median of 21%, compounded yearly.
Weighted Median 100 Gbps Wavelength Costs on Key Latin American Routes
As you possibly can see above, Miami–São Paulo and Dallas–Mexico Metropolis proceed to be probably the most competitively priced routes within the area. These are each very established markets the place provide, demand, and competitors are ample. One noteworthy distinction between them is that Dallas–Mexico is a shorter terrestrial route, which ends up in decrease prices (and, in flip, decrease costs for consumers) than a subsea route like Miami–São Paulo.
Individually, steep value erosion has introduced the Buenos Aires–Miami and Lima–Miami routes consistent with others within the area. From 2022-2025, the weighted median value of 100 Gbps on Buenos Aires–Miami fell 30%, compounded yearly. For Lima–Miami the worth of 100 Gbps fell 22% over the identical time interval. This comes as each markets have seen elevated competitors and world carriers providing extremely aggressive costs.
Bogotá–Miami connectivity can be competitively priced and can possible get even cheaper. The weighted median price for 100 Gbps on Bogotá–Miami in This autumn 2025 was down 21%, compounded yearly, from 2022.
Market vary
Evaluating common costs on totally different routes is a helpful train. Equally, understanding the vary of costs on a given route will help reveal deeper dynamics at play. Within the beneath determine we see such a value vary for Miami–São Paulo from 2022-2025. Let’s take a look and talk about what the info inform us.
Weighted Median & Worth Vary for 100 Gbps Wavelengths on Miami–São Paulo
For a few years, Miami–São Paulo has been Latin America’s de facto major route for connecting to the US. Consequently, this route has attracted numerous opponents promoting capability at a variety of costs. And over the previous few years, the vary of costs has stayed comparatively constant. In This autumn 2022, the very best value reported to us was $45,000, round 3 times greater than our reported low. That’s practically the identical as in This autumn 2025, when our most value for Miami–São Paulo of $20,000 was 4 instances the low. Throughout that three-year span, value decline was quicker for the minimal value (-30%) than for the weighted median (-21%) or most (-24%). This helps what we’ve heard from contacts within the business who be aware that costs on this route have change into extraordinarily aggressive. Though Miami–São Paulo is a well-established market with excessive boundaries to entry, the worth for 100 Gbps transport retains falling at spectacular charges.
What’s subsequent for bandwidth pricing in Latin America
After a number of years of sluggish development, Latin America and the Caribbean are starting to see a wave of recent subsea methods deliver extra capability to {the marketplace}. This contains not too long ago launched cables like Firmina and others like CSN-1, TAM-1, MANTA, TIKAL/AMX-3, CELIA, and Challenge Waterworth anticipated to enter service within the coming one to 2 years. This elevated provide will push 100 Gbps costs downward, particularly on routes with ample competitors. After that, we count on 400 Gbps gross sales to change into extra frequent on established routes with robust demand within the area.
On two such routes, we anticipate value erosion to stay regular within the coming years. On Miami–São Paulo, we forecast 100 Gbps costs to fall 12%, compounded yearly from 2025 to 2032. And on Bogotá–Miami we count on erosion to be barely faster over that point interval at 16%.
Forecasted 100 & 400 Gbps CAGR Worth Decline on Key Latin American Routes
As soon as the 400 Gbps market on these routes is best established, we count on value erosion to outpace that of 100 Gbps. From 2025-2032, we forecast 400 Gbps costs will fall a median of 15% on Miami–São Paulo and 20% on Bogotá–Miami, compounded yearly.
Past these established markets, we count on costs to proceed to fall all through the area. And in markets the place new capability is predicted to come back on-line, larger capability purchases will change into extra enticing to prospects. For nations like Mexico, which means 400 Gbps gross sales will change into extra frequent. In smaller markets like most Caribbean islands, that may ultimately imply 100 Gbps wavelengths are offered extra continuously.
You will discover this information and evaluation and extra in our Wavelengths Pricing platform. Check out the video tour beneath. (And you can even take a look at the opposite pricing we now have obtainable in our Community Pricing Database.)