BOGOTA, Colombia, May 31, 2010 - Cisco announced today the results of the Cisco® Broadband Barometer, reporting a growth of 18 percent in fixed broadband connections in Colombia during December 2009.

During the last year 328,000 new connections were added, and the country reached a penetration of 4.8 connections per 100 inhabitants.

In the period between June and December 2009, the broadband market experienced a growth of 3.6 percent, the lowest during the six-month periods analyzed by the study.

The Barometer analysts conclude that the broadband market in Colombia is reaching its saturation point due to the lack of exploration of new market niches. According to the study, marketers focused on the residential segment during the last year with good results, but niches like small and medium-sized businesses (SMBs) have yet to be fully served.

Highlights:

• The concentration of broadband connections in the residential segment is at 80 percent. The enterprise segment represents 20 percent of the connections.
• Small businesses represent 14.6 percent of the connections, while medium-sized businesses make up only 3.0 percent.
• Nearly three-quarters (74 percent) of the broadband connections are concentrated in the Capital District, with 26 percent in the rest of the country.
• More than half (55 percent) of the broadband connections have speeds between 512 kilobits and 1 megabit per second; 34 percent have connections higher than 1 Mbps; and 7 percent have connections between 256 Kbps and 512 Kbps. The increase in connections with speeds higher than 1 Mbps reveals the positive impact of the regulations that the country has adopted regarding broadband quality.
• The regions with the highest broadband penetration were Antioquia (6.81 percent), Boyaca (5.82 percent) and Eje Cafetero (4.30 percent).
• During the last year mobile broadband connections grew 306 percent.
• As of December 2009 mobile subscriptions reached a total of 1,001,400;
• Forty-seven percent of the mobile broadband connections are concentrated in the metropolitan region (cities), and 53 percent in the rest of the country.

Supporting Quotes:

• Simbad Ceballos, general manager, Cisco Colombia

"An increment of 10 percentage points in broadband connections corresponds to an increase of 1.3 percentage points of economic growth, according to the World Bank. A high penetration and a high quality of broadband have a socio-economic impact."

"It is necessary to create a national broadband agenda for Colombia, with the goals of availability, penetration and quality. Broadband networks offer a unique and profitable opportunity to increase productivity and competitiveness."

About Barometer

Cisco Broadband Barometer is a Cisco initiative to promote and encourage broadband connectivity in Latin America. It sets goals regarding the number of connections, establishes a periodical measurement of progress, publishes these results, and develops timetables and strategies with service providers and governments.

Currently, Cisco Barometer measures broadband growth in Argentina, Chile, Brazil, Colombia, Costa Rica, Venezuela, Peru and Uruguay. The Barometer has been supported in each case by the national government.