Nicaragua - Telecoms, Mobile and Broadband

Executive summary

Nicaragua is the largest country in Central America, but one of the least densely populated. It has the region’s lowest GDP per capita. About 62% of the population live below the poverty line.

Nicaragua’s teledensity is the lowest in Central America, about 64% lower than the regional average, reflecting the country’s equally low economic indicators. Mobile penetration is only 28% below the Central American average and relatively high compared with GDP per capita. In fact, mobile phones in Nicaragua exceed the number of fixed lines in service by more than eleven to one.

Nicaragua’s fixed-line sector is officially liberalised, but full liberalisation is waiting for the government to create an independent anti-monopoly authority (ProCompetencia). The process has been delayed by political squabbles and never-ending bureaucratic muddles.

Nicaragua’s mobile market is a duopoly between the two Latin American mobile giants, América Móvil and Telefónica. América Móvil holds a virtual monopoly over the country’s fixed lines through Enitel; it controls two thirds of the mobile market through Claro; and in 2008 it acquired the country’s leading cable TV company Estesa.

Most Internet users are concentrated in the largest cities because the rural and marginal areas lack access to the most basic telecom infrastructure. A number of Internet cafés provide public access to Internet and email services, but these are also restricted to the larger population centres.

Market highlights:

• Nicaragua’s telecom market is liberalised only in theory; in practice, as with all other industries in the country, there is no anti-monopoly authority to prevent anticompetitive and monopolistic practices.
  
• VoIP is open to full competition and there are several companies offering VoIP service.
  
• Russia’s Rostekhnologii state corporation has signed a memorandum of cooperation with Nicaragua’s telecom regulator to develop WiMAX technology in the country.
  
• Claro has launched 3G mobile services based on WCDMA technology.
  

Lucia Bibolini

April 2009

Table of Contents

• 1. Executive summary
  
• 2. Key statistics
  
• 3. Country overview
  
• 4. Telecommunications market
  
  • 4.1 Overview of Nicaragua’s telecom market
    
• 5. Regulatory environment
  
  • 5.1 Background
    
  • 5.2 Regulatory authority
    
    • 5.2.1 Telcor
      
  • 5.3 Privatisation
    
  • 5.4 Telecom sector liberalisation in Nicaragua
    
  • 5.5 DR-CAFTA
    
• 6. Telecom network operators in Nicaragua
  
  • 6.1 Enitel
    
  • 6.2 Movistar (Telefónica)
    
• 7. Telecommunications infrastructure
  
  • 7.1 National telecom networks
    
    • 7.1.1 Public telephones
      
  • 7.2 International infrastructure
    
    • 7.2.1 Interconnection with other Central American countries
      
    • 7.2.2 Submarine cable networks
      
    • 7.2.3 Satellite networks
      
  • 7.3 Infrastructure developments
    
    • 7.3.1 IP and Voice over Internet Protocol (VoIP)
      
• 8. Internet market
  
  • 8.1 Overview
    
    • 8.1.1 Internet statistics
      
• 9. Broadband market
  
  • 9.1 Overview
    
• 10. Convergence
  
  • 10.1 Overview of media convergence
    
  • 10.2 Pay TV market
    
    • 10.2.1 Cable TV
      
    • 10.2.2 Satellite TV
      
• 11. Mobile communications
  
  • 11.1 Overview of Nicaragua’s mobile market
    
    • 11.1.1 Mobile statistics
      
  • 11.2 Mobile technologies and data services
    
    • 11.2.1 Third generation (3G) mobile
      
  • 11.3 Major mobile operators
    
    • 11.3.1 Claro (América Móvil)
      
    • 11.3.2 Movistar (Telefónica)
      
  • 11.4 Satellite mobile
    
• 12. Related reports
  

• Table 1 – Country statistics Nicaragua – 2008
• Table 2 – Telephone network statistics – 2007
• Table 3 – Internet user statistics – 2007
• Table 4 – Broadband statistics – 2007
• Table 5 – Mobile statistics – 2008
• Table 6 – National telecommunications authority
• Table 7 – Fixed lines in service and teledensity - 1996 - 2007
• Table 8 – Public phones – 1998 - 2007
• Table 9 – Internet users and penetration rate - 1997 - 2007
• Table 10 – Internet subscribers - 2000 - 2007
• Table 11 – Internet technology market share – 2000 - 2006
• Table 12 – Broadband subscribers and penetration rates - 2000 - 2007
• Table 13 – Mobile subscribers by operator and technology - 2008
• Table 14 – Mobile subscribers and penetration rate - 2000 - 2008
• Table 15 – Mobile market share by operator - 2002 - 2008
• Table 16 – Mobile prepaid/postpaid ratio - 2003 - 2008
• Table 17 – Claro – mobile subscribers - 2002 - 2008
• Table 18 – Movistar – mobile subscribers - 2000 - 2008

• Exhibit 1 – Major submarine cable networks connecting Nicaragua
• Exhibit 2 – Aló PCS – history
• Exhibit 3 – Enitel Movil – history
• Exhibit 4 – Movistar – history