Why is bandwidth so expensive in Latin America?

SASE Secure Access Service Edge

Clients that ask us for network connectivity in South America are usually surprised at the prices for internet connectivity and MPLS networking to Brazil, Argentina and other countries in the southern hemisphere.

The primary cost driver is the limited subsea cables connecting South America to North America and Europe.  Think of your college economics:  supply and demand. When the bandwidth supply is limited, the price is high.  Latin American demand for North American connectivity is projected to increase 30% per annum to 3 Tbps by 2013, while intra-regional demand is projected to increase to 34Gbps in 2013, or a growth of 523%.

Add the limited quality of local connectivity, resulting in premium costs for data quality connectivity and you have a formula for high prices.  Add to this generous mark-ups by carriers to add to their bottom line.

SD-WAN-Experts can help your company get better pricing than you can otherwise, since we understand the tricks to trade in servicing Mexico and South America.

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