Industry conferences are like orchestras: they bring together many sounds which may be hard for the untrained ear to differentiate.
We at TeleGeography are well-equipped to listen to the many melodies sung at telecom industry gatherings. Most recently, I joined colleagues in São Paulo to discuss regional trends at the Capacity LATAM event.
If you couldn’t make it to Brazil this year—or you are still piecing together everything you heard at the conference—there are four key notes I’d emphasize.
My Fair Network Expansions
Following several years of relatively few submarine cable projects in Latin America, the scenario is beginning to shift. Multiple new submarine cable systems are in the planning process, with some cables nearly ready to begin laying cable on the ocean floor.
As we discussed at Capacity LATAM last year, connectivity to Mexico is an important factor shaping where these new cables will land. A few of the planned cable systems that we heard about at this year’s event include TAM-1 (expected to be ready for service in 2025), CSN-1 (2026), TIKAL-AMX3 (2026), and MANTA (2027). Combined with the announcement of CSN-2—which will incorporate connectivity between Mexico and the U.S. into Telconet’s Carnival system—we heard a lot about the strong demand to connect data centers around Querétaro, Mexico.
There are still some unanswered questions about how the power grid will sustain the rapid growth of data centers in Central Mexico. But it seems clear that the need for improved connectivity in the region is a widely shared priority.
The Phantom of Diminishing Wavelength Prices
It is hardly a novel observation to note that the price of international wavelengths is falling. But in some markets, price erosion is even more pronounced than usual.
Miami–São Paulo is well known as the primary transport route between Latin America and the United States. And with its abundant supply plus well-saturated competition, prices on that route are regularly in steady decline. From 2022-2025, 100 Gbps on Miami–São Paulo fell 18%, compounded annually. The below figure shows general trends for this capacity’s prices throughout the region.
2022-2025 Capacity Pricing
Other routes in Latin America are seeing similarly fast price erosion. For example, Bogotá–Miami and Lima–Miami both saw weighted median prices for 100 Gbps fall 19% from 2022-2025, compounded annually. These are two markets that were often mentioned as particularly active. And for Buenos Aires–Miami, the average price for 100 Gbps fell 23%, compounded annually over the same period.
These markets and others will experience further price erosion as new submarine cable systems come online. Some notable examples include Firmina, CSN-1, CSN-2, TAM-1, MANTA, TIKAL/AMX3, Lobster, and Project Waterworth.
Little Shop of 400 Gbps Sales
While prices are falling, demand for international connectivity continues to grow. Though in Latin America, the rate of demand growth has decelerated. That helps explain—at least in part—why the adoption of 400 Gbps wavelengths in the region has been slow to develop.
We’ve heard of 400 Gbps sales occurring on major routes like Miami–São Paulo and Dallas–Mexico City. On the latter route, for example, carriers offering 400 Gbps have reported prices between 3 to 3.5 times that of 100 Gbps. But 100 Gbps is still the most common capacity in wholesale transactions and is likely to stay that way for the foreseeable future.
We expect hyperscalers to be a catalyst for 400 Gbps wavelength adoption in the region. At the moment, hyperscalers tend to be best positioned to negotiate large contract terms and purchase at that level of capacity. As capacity requirements increase and more types of clients become interested in 400 Gbps connectivity, we expect cost advantages over 100 Gbps to improve.
The Sound of Asset Divestment
Market consolidation was another common topic at Capacity Latin America 2025. And the exit of Telefónica and InterNexa from multiple key Latin American markets was perhaps the most prominent example of this.
As we’ve covered previously, Telefónica’s profile in Latin America has shifted drastically. While the long-term implications of these changes will vary by market, the overall picture reflects evolving investment patterns in the region.
Similarly, InterNexa’s shift away from key Latin American markets—namely, Chile, Brazil, and Argentina—indicates some carriers are prioritizing risk minimization over portfolio growth at the moment. And considering Gold Data’s similar exit from Panama, it is clear that this pattern is not limited to any single company.
A primary takeaway is that this region is seeing both new infrastructure and competitive pricing arrive in a range of markets, not just well-established ones like Brazil. As these dynamics continue to evolve, we’ll pay attention to who is selling—and who is buying—backbone connectivity to and within Latin America, the Caribbean, and beyond.
Naturally, this info is already making its way into our research, particularly our pricing tools. I recommend taking a peek at some of our latest updates to see this intel in action. Or scope out my colleague Juan Velandia's presentation on the state of the Latin American market.
Peter Wood
Peter Wood is a Senior Research Analyst at TeleGeography. His work is focused on network services and pricing with a regional focus on Latin America and the Caribbean.
