El Salvador – Telecoms, Mobile and Broadband

Sydney, November 15, 2021 (GLOBE NEWSWIRE) – Just published, this edition of the BuddeComm report describes the latest developments and key trends in the telecommunications markets. – https://www.budde.com.au/Research/El-Salvador-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?utm_source=GNW

Economic potential is limited by the relatively small population, while the country’s telecommunications sector has been constrained by poor infrastructure and unequal distribution of income. There have been organizational delays which have retarded the development of telecommunications services, although in recent years much progress has been evident, and indeed the telecommunications sector has been one of the most prosperous in the world. global economy.

The teledensity of fixed lines in El Salvador is significantly lower than the average for Latin America and the Caribbean. The number of fixed lines has decreased considerably since 2010, especially in 2017, largely due to the substitution of mobile-only alternatives. About 94% of all telephone lines in the country are on mobile networks.

Mobile penetration is remarkably high considering El Salvador’s economic indicators, being around a third higher than the average for Latin America and the Caribbean. The country was one of the last in the region to provide LTE services, mainly due to insufficient provision of suitable spectrum. The multi-spectrum auction conducted at the end of 2019 enabled MNOs to improve the scope and quality of their service offerings.

Salvadoran telecommunications legislation is one of the most liberal in Latin America, encouraging competition in most areas and allowing foreign investment. However, no regulations encourage wholesale broadband, and as a result in the DSL market leader Claro retains a virtual monopoly. The only effective cross-platform competition in the broadband market comes from the few cable operators.

There has been some market consolidation in recent years, including the acquisition by Telemóvil of regional cable TV provider Caribena Cable. In May 2019, the competition authority began evaluating the sale of Telefónica El Salvador to América Móvil, which operates in the country under the Claro brand. Due to regulatory obstacles, América Móvil decided at the end of 2020 not to buy the company. After some delay, Telefónica sold the unit in October 2021, but at a significantly reduced price.

BuddeComm notes that the pandemic continues to have a significant impact on the telecommunications market. On the consumer side, spending on telecommunications services and devices is under pressure due to the financial impact of large-scale job losses and the consequent restriction in disposable income. However, the crucial nature of telecommunications services, both for general communication and a work-from-home tool, has offset these pressures. In many markets, the net effect has been reduced (and sometimes negative) growth in the number of subscribers.

Overall progress towards 5G has been postponed or curtailed in some countries.

While it is difficult to predict and interpret the long-term impacts of the crisis as it develops, these have been recognized in the industry forecasts contained in this report.

The report also covers responses from telecommunications operators as well as government agencies and regulators as they respond to the crisis to ensure that citizens can continue to make optimal use of telecommunications services. This can be reflected in grant programs and the promotion of telehealth and distance education, among other solutions.

Key developments:

  • Telefónica Group sells its El Salvador unit to a British investment firm;
  • Digicel files for bankruptcy, with debts of $ 7 billion;
  • Tigo Business providing digital connection services to 830 Walmart locations in Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica;
  • BT Group sells its Latin American units and assets to CIH Telecommunications Americas;
  • Millicom Selects US-Based Affirmed Networks To Deploy 5G-Enabled Cloud-Based Core Network in Latin America;
  • Tigo launches LTE-A in parts of San Salvador, Santa Ana, San Miguel, La Union and La Libertad;
  • Telefónica will cease offering the DTH pay television service in the event of non-renewal of the satellite capacity agreement with SES in Central America;
  • The report update includes updates to the regulator’s market data for the second quarter of 2021, financial and operational data of telecommunications operators through the second quarter of 2021, charts and analysis of the maturity index of telecommunications, the assessment of the global impact of Covid-19 on the telecommunications sector; recent market developments.

Companies mentioned in this report:
América Móvil (Claro), Flexenclosure, Millicent International (Tigo), Telefónica (Movistar), Red, GCA Telecom, Salnet, Superintendencia General de Electricidad y Telecomunicaciones (Siget), Amnet, Sky TV, Walmart, SES.
Read the full report: https://www.budde.com.au/Research/El-Salvador-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?utm_source=GNW


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