Thanks to growing IPTV competition, Latin American pay-TV penetration is expected to double within the next five years, according to TVTelco Latam.

The 17 countries in Latin America had about 27 million subscribers among them at the end of 2007; that should increase to 59 million by 2012, TVTelco Latam said in its report – "IPTV and Pay-TV in Latin America 2007-2012."

The research group believes that IPTV will drive growth by creating competition, but that it will not play a dominant role in the market. Likewise, due to competition pressure, satellite TV and cable penetration will increase significantly.

Mexico will record an increase from a 2007 penetration rate of 23 percent to a 38 percent penetration rate in 2012. IPTV providers and cable operators are both projected to add about 2.3 million new subscribers.

Growth projections are highly contingent on a variety of circumstances. In Mexico, all parties involved must actually apply the 2006 Convergence Agreement between carrier Telmex and several cable companies; the agreement would enable the cable operators to offer the full triple-play.

Brazil awaits the passage of the 29 Bill (PL29), which enables Brazilian telephone incumbent companies to render IPTV services. Argentina, TVTelco Latam opined, has too many regulatory restrictions on IPTV.

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