Contributed Article
By Cesar Jimenez, CTO, Trans Americas Fiber
Latin America’s international bandwidth is growing faster than that of almost any other region, yet much of it still travels on cables designed for a very different internet. There is real value in making better use of the region’s existing subsea infrastructure. Upgrading established systems can unlock additional capacity and extend their useful life, and it will remain an important part of meeting future demand. At the same time, the region’s changing traffic patterns and growing connectivity needs raise a broader question: how can existing infrastructure and new investment work together to deliver the capacity, route diversity and commercial flexibility customers need?
Demand is not evenly distributed
The average utilisation across an existing portfolio can look comfortable, but demand does not spread itself evenly across a network. According to TeleGeography, used international bandwidth in Latin America grew by about 25% in 2025 to more than 400 Tbps, and some networks are already running hot. Brazil has grown at a 29% compound annual rate, Mexico at 32%, and Colombia at close to 40%. Spare capacity on one cable does not help a customer who needs it on another route, in another country, or with a different landing point. Nor does it help if it cannot be bought in the quantity or on the terms the customer needs. Available capacity is only useful where, when and how it can be used.
Investment is lagging demand
Latin America is attracting less cable investment than other regions. TeleGeography estimates USD 0.7 billion for cables entering service between 2023 and 2025 and USD 1.3 billion expected between 2026 and 2029, below Asia, Oceania and the transatlantic and transpacific routes. Content providers played no role in Latin American cables before 2017, but their presence has grown steadily, and carriers remain key to future projects. More than 90 Tbps of content-provider demand already travels the US to Latin America route, growing at about 50% a year. The cloud footprint tells the same story. Latin America has far fewer cloud availability zones than Asia, Europe or the United States, yet five more are planned. As that infrastructure arrives, so does the need for direct, high-capacity international connectivity.
The limits of upgrades
New terminal equipment can raise the capacity of existing fiber, and the industry should keep taking advantage of that. But an upgrade works within the limits of the cable already in the water: its fiber count, its reach and its age. Older systems were built with fewer fiber pairs, earlier generations of fiber with higher attenuation and smaller effective area, and repeaters and power-feed equipment designed for the transmission technology of their day. A system with no defined end of life is not a system with unlimited life, and an upgraded older cable is still an older cable.
TeleGeography’s list of ageing systems in the region runs to around twenty cables, with the oldest past 30 years in service. Meanwhile, the demands placed on the network have changed. Yesterday’s cables were designed for voice and internet traffic that was predictable, flow north to south, was led by carriers and was limited by capacity. Today’s traffic is shaped by cloud, AI, content delivery and regional data centres. It is dynamic, distributed and growing quickly.
Designed for today’s traffic
The TAM-1 cable, and other planned new subsea systems in the region, have been designed for that traffic. TAM-1 is one of fewer than five 24-fiber-pair subsea cable systems deployed globally, and the first in the Americas. With 24 fiber pairs on its South System and 12 on its North System and around 800 Tbps of design capacity with current-generation terminal equipment, it offers more than 200 times the capacity of any of the legacy Caribbean systems and its open cable design lets customers light capacity with the equipment of their choice as transmission technology evolves.
Resilience is about having more routes to choose from
Resilience is a priority for subsea networks across a region exposed to hurricanes, earthquakes and fishing activity. Strong operational track records and continued investment in existing systems both play an important role, but resilience also depends on the diversity of routes available when disruption occurs. Past hurricanes have demonstrated how connectivity can be affected when communities rely on a single route. TAM-1 addresses this through two diverse subsea routes, a North System and a South System, with switchable branching units that allow traffic to be re-routed between them. Stubbed branching units installed during construction also provide for future expansion, including the planned TAM-2 Pacific extension, without the need for disruptive marine work on the live system. Route diversity and future flexibility were priorities highlighted by customers from the outset, and both are built into the design.
TAM-1 North and South Systems. Source: Trans Americas Fiber
Access matters as much as capacity
For decades, the best subsea connectivity in the region has been available mainly to those who own infrastructure or depend on those who do. Smaller carriers and ISPs paid more for less and had little say over the capacity they relied on.
Modern systems are tending towards neutrality and open access. Any carrier, hyperscaler, ISP, government or enterprise can buy capacity directly, with no minimum commitment and no fixed structure. Shared spectrum, managed optical services and dark fiber let customers start at the scale they need and grow from there. Ten anchor tenants, including AT&T, Millicom, AXTEL and Grupo ICE, committed to TAM-1 before construction was complete. Grupo ICE’s partnership alone is expected to increase Costa Rica’s total international capacity more than twentyfold.
Both, and more
This is not a choice between upgrading what exists and building what is needed. The region needs both, and it needs competition between them. But it should not be asked to settle for yesterday’s design when demand is growing about 25 to 30% a year and the traffic mix is changing. Capacity on paper only matters if customers can reach it, trust it and afford it. We are acting to give the region scale, diversity and open access in one platform.
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César Jiménez, Chief Technology Officer, Trans Americas Fiber
