Executive summary
Recovery in GDP per capita providing higher disposable household income for telecom services
As well as being one of the poorer countries in Latin America, Guatemala’s socioeconomic indicators are among the worst in the region. A social and political oligarchy has successfully avoided their tax responsibilities with the result that state and provincial governments have insufficient revenue to fund much needed upgrades to telecom infrastructure. As a consequence the market is left to the private sector, and with little government assistance many regional areas remain with poor or non-existent services.
The business environment is also challenging for foreign investors despite national laws granting national treatment to all foreign investors in the telecom sector, and the telecom industry having one of Latin America’s most open regulatory frameworks. All telecom sectors, including local telephony, have been open to competition since 1996.
Poor infrastructure has meant that despite fixed-line competition the country’s fixed-line teledensity remains very low (by European standards), at about 11%%, though it must be regarded as appropriate within Latin America given the context of very low GDP per capita and insignificant government funding. The knock-on effect is that broadband availability, dependant on the copper network infrastructure, is also poor or non-existent in many rural and isolated areas.
América Móvil controls about 70% of the fixed lines in service through its subsidiary Claro, previously known as Telgua. Mobile telephony has been the most developed telecom market in Guatemala for several quarters and is likely to remain so for the next few years given the poor condition of fixed-line services. The intense competition amongst operators has helped to improve services and lower prices. Mobile penetration is about average for the region, therefore remarkably high considering the country’s poor socioeconomic indicators. Millicom’s Tigo is the mobile market leader, offering services over a GSM/WCDMA network.
Guatemala’s broadband market has been slow to develop because of limited infrastructure, widespread poverty, and inadequate education. Technologies used include ADSL, WiMAX, and cable modem. With its ADSL service, Claro is the leading broadband provider.
Key highlights:
- The telephone system in Guatemala reflects the country’s poverty map, with a relatively modern network centred in the city of Guatemala, and woefully under-serviced rural areas.
- VoIP is completely deregulated, whether it is PC-to-PC communication or a computer-to-phone link over the internet. As a result, VoIP has reached widespread acceptance in Guatemala.
- Due to the deficiencies of the fixed-line infrastructure, WiMAX and mobile broadband have become important alternatives to meet Guatemala’s growing broadband demand.
- Digicel plans to launch mobile services in Guatemala in 2011, to become the country’s fifth mobile operator.
Guatemala – key telecom parameters – 2010 - 2012
Category
| 2010
| 2012 (e)
|
|---|
Fixed-line service
|
|---|
Total number of subscribers (million)
| 1.41
| 1.49
|
Annual growth
| 2.5%
| 3.0%
|
Teledensity
| 10.6%
| 11.9%
|
Internet
|
|---|
Internet users (million)
| 2.20
| 2.49
|
Annual growth
| 4%
| 7%
|
Internet user penetration
| 16.2%
| 18.2%
|
Broadband
|
|---|
Total number of subscribers
| 259,000
| 750,000
|
Annual growth
| 66%
| 50%
|
Penetration rate
| 3.3%
| 8.2%
|
Mobile telephony subscribers
|
|---|
Total number of subscribers (million)
| 18.30
| 20.95
|
Annual growth
| 6%
| 7%
|
Mobile penetration rate
| 88.3%
| 94.4%
|
(Source: BuddeComm)
Lucia Bibolini
October 2011
Data in this report is the latest available at the time of preparation and may not be for the current year.
This report covers trends and developments in the telecommunications, mobile, internet and broadband market in Guatemala, including VoIP developments. Subjects include:
- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure development;
- Major Players, Revenues, Subscribers;
- VoIP;
- Mobile Voice and Data Markets;
- Internet and broadband markets (DSL, cable modem, wireless);
- Mobile market (including 3G and mobile broadband).
