Honduras - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Executive summary

New IXP to improve internet connectivity in Honduras

Among the poorest countries in Central America, Honduras has long been plagued by an unstable political framework which has rendered telecom reform difficult. Reform is critical if the country is to address some of the least impressive market statistics in the region.

The country has been on the cusp of bankruptcy for several years, and though a group of banks had written off $3.5 billion of debt in 2007 accumulated debt since then has reached $5 billion. The economic plight has contributed to crises within the government, with no consensus on how to formulate a budget for 2013.

These practical difficulties have had real effects on the country’s telecom market. Fixed-line teledensity at only 7% is significantly lower than the Latin American and Caribbean average. Poor fixed-line infrastructure has been exacerbated by low investment and difficulties in local terrain which have made investment in rural areas unattractive or uneconomical. As a consequence, the internet has been slow to develop in Honduras: DSL and cable modem technologies are available but relatively expensive, while higher speed services are largely restricted to the major urban centres. Nevertheless, the demand for broadband is steadily increasing and there are has been some investment in network upgrades to fibre-based infrastructure, though this is restricted to the main cities. Poor fixed-line connectivity has also inhibited the take-up of VoIP, which would otherwise be a preferred communications medium to expensive domestic calls.

On the positive side, these factors have encouraged consumer take-up of mobile services, a sector where there is lively competition supported by international investment and know-how. As a result, mobile penetration is about 20% above the regional average. Revenue from the mobile sector looks promising in coming years as operators invest in their networks, expanding their reach and upgrading their capabilities to accommodate mobile broadband services. Mobile data as a proportion of overall mobile revenue has increased steadily, though low-end SMS services will continue to account for the bulk of data revenue for some years.

Political developments during the last few years have not facilitated the much-needed reform of legislation governing the telecoms sector. Partly this is due to political stalemate and ineffective legislators, but underlying the difficulties are the close ties between executives at the incumbent Hondutel and key members of the government. Charges of bribery and corruption are rife, and though the framework for reforming the Telecommunications Act remains before the Honduran Congress, there is little prospect of effective change in the short term which would bring about a properly competitive and fair market for some services.

Estimated market penetration rates by service – 2015 (e)

Market
Penetration rate
Mobile
99.8%
Internet (users)
18.6%
Fixed
5.7%

(Source: BuddeComm based on various sources)

Key developments:

  • Tigo Money mobile cash transfer service signs up more than one million users;
  • Claro and Tigo both launch LTE services;
  • Tigo launches satellite service;
  • Hondutel management shake-up fails to stem losses, though the company reported its first a net profit in June 2014 in 41 consecutive months;
  • Spectrum auction encourages mobile broadband services take-up;
  • Tigo rebrands broadband and pay-TV business as ‘Tigo Star’;
  • Regulator’s market data updates, telcos’ operational data updates, recent market developments.

Companies mentioned in this report include:

Hondutel, Comunitel, MultiData, Millicom, Digicel, América Móvil.

This report covers trends and developments in the telecommunications, mobile, internet and broadband market in Honduras. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure developments;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttP, DSL, cable, wireless);
  • Convergence and Digital Media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.
  • Government policies affecting the telecoms industry;
  • Market liberalisation and industry issues;
  • Telecoms operators – privatisation, IPOs, acquisitions, new licences;
  • Mobile technologies (GSM; 3G, HSPA, LTE).

Table of Contents

  • 1. Executive summary
  • 2. Key statistics
  • 3. Telecommunications market
    • 3.1 Country overview
    • 3.2 Overview of the Honduran telecom market
  • 4. Regulatory environment
    • 4.1 Regulatory authority
      • 4.1.1 Comisión Nacional de Telecomunicaciones (Conatel)
    • 4.2 Privatisation
    • 4.3 DR-CAFTA
    • 4.4 Foreign investment
    • 4.5 Telecom sector liberalisation in Honduras
    • 4.6 ‘Telephony For All’ program
  • 5. Fixed network operators in Honduras
    • 5.1 Hondutel
    • 5.2 Tele+ (Comunitel)
    • 5.3 MultiData
  • 6. Telecommunications infrastructure
    • 6.1 National telecom network
    • 6.2 Internet Exchange Point (IXP)
      • 6.2.1 Fixed-line statistics
    • 6.3 International infrastructure
      • 6.3.1 Interconnection with other Central American countries
      • 6.3.2 Submarine cable networks
      • 6.3.3 Satellite networks
    • 6.4 Infrastructure developments
      • 6.4.1 Wireless Local Loop (WLL)
      • 6.4.2 IP and Voice over Internet Protocol (VoIP)
  • 7. Broadband market
    • 7.1 Overview
    • 7.2 Internet statistics
    • 7.3 Major ISPs and broadband players
    • 7.4 Mobile broadband
    • 7.5 Community Telecentres
    • 7.6 Fibre broadband
  • 8. Digital Media
    • 8.1 Media convergence
    • 8.2 Cable TV
  • 9. Broadcasting
    • 9.1 Satellite-based digital pay TV developments
    • 9.2 Digital terrestrial TV
  • 10. Mobile communications
    • 10.1 Overview of the Honduran mobile market
    • 10.2 Mobile Number Portability (MNP)
    • 10.3 Mobile statistics
    • 10.4 Mobile technologies and data services
      • 10.4.1 Third generation (3G) mobile
      • 10.4.2 Fourth generation (4G) mobile
    • 10.5 Mobile infrastructure
      • 10.5.1 LTE
    • 10.6 Major mobile operators
      • 10.6.1 Tigo/Celtel (Millicom)
      • 10.6.2 Claro/Sercom (América Móvil)
      • 10.6.3 Hondutel
      • 10.6.4 Digicel
    • 10.7 Mobile applications
      • 10.7.1 M-money
  • 11. Related reports
  • Table 1 – Country statistics Honduras – 2015 (e)
  • Table 2 – Telephone network statistics – 2015 (e)
  • Table 3 – Internet user statistics – Jun 2014
  • Table 4 – Mobile statistics – 2014 (e)
  • Table 5 – National telecommunications authority
  • Table 6 – Evolution of GDP in Honduras – 2000 - 2014
  • Table 7 – Fixed line traffic – 2001 – 2014
  • Table 8 – Market share of fixed lines in service – 2003 - 2012
  • Table 9 – Number of operators: fixed, mobile, data, ISP and CATV markets – 2005 - 2010
  • Table 10 – Hondutel revenue – 2011 – 2014
  • Table 11 – Hondutel – fixed lines in service – 1997 - 2011
  • Table 12 – Telecom sector revenue – 2011- 2014
  • Table 13 – Fixed lines in service by operator – 1996 - 2012
  • Table 14 – Historic - Fixed lines in service – 1996 - 2004
  • Table 15 – Fixed lines in service by operator – 2005 - 2015
  • Table 16 – International bandwidth – 2000 - 2014
  • Table 17 – Historic - Internet users and penetration rate – 1997 - 2004
  • Table 18 – Internet users and penetration rate – 2005 - 2015
  • Table 19 – Internet subscribers and penetration rate – 2002 - 2015
  • Table 20 – Fixed-line broadband subscribers – 2010 - 2014
  • Table 21 – Active mobile broadband subscribers – 2010 - 2014
  • Table 22 – Cybercafé and CCI points – 2002 - 2012
  • Table 23 – Pay TV subscribers and penetration rates – 2003 - 2012
  • Table 24 – Historic - Mobile subscribers and penetration rate – 1997 – 2004
  • Table 25 – Mobile subscribers and penetration rate – 2005 – 2015
  • Table 26 – Mobile prepaid/postpaid ratio – 1997 - 2015
  • Table 27 – Historic - Mobile traffic – 2001 – 2010
  • Table 28 – Tigo – mobile subscribers – 2000 - 2015
  • Table 29 – Historic - Claro – mobile subscribers – 2003 - 2008
  • Table 30 – Tigo Money users – 2014 - 2015
  • Chart 1 – Market share of fixed lines in service – 2003 – 2012
  • Chart 2 – Fixed lines in service by operator – 2005 – 2015
  • Chart 3 – Internet users and penetration rate – 1009 – 2015
  • Chart 4 – Internet subscribers and penetration rate – 2003 – 2015
  • Chart 5 – Mobile subscribers and penetration rate – 2005 – 2015
  • Exhibit 1 – Major submarine cable networks connecting Honduras
  • Exhibit 2 – Spectrum band allocations for LTE - 2013
  • Exhibit 3 – Spectrum auction awards – October 2013

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