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Broadband competition, network effects and FTTx diffusion in Latin America

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  • Gonzalo Ruiz Díaz

Abstract

Over the last few years, Latin American countries have initiated a process of technological transformation in fixed broadband services, associated with the surge of FTTx services in substitution for cable, xDSL and other technologies. While the pace and nature of this process differ among countries, this study identifies some common determinants behind FTTx adoption. Using a panel of 15 countries from 2015 to 2023, we find evidence that supply-related factors such as competition and network effects positively influence FTTx technology diffusion. Additionally, demand factors such as per capita income, education and, to a lesser extent, income inequality were also found to be significant determinants of FTTx diffusion. We also find evidence of significant geographic and supply spillover effects among countries on such technology adoption. However, the progress exhibited by different countries in the region in the adoption of FTTx is unequal, which explains important differences in service performance and levels of affordability.

Suggested Citation

  • Gonzalo Ruiz Díaz, 2026. "Broadband competition, network effects and FTTx diffusion in Latin America," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 35(5), pages 989-1006, July.
    • Handle: RePEc:taf:ecinnt:v:35:y:2026:i:5:p:989-1006
    DOI: 10.1080/10438599.2025.2547659
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