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Guatemala - Telecoms, IP Networks and Digital Media - Statistics and Analyses

Guatemala - Telecoms, IP Networks and Digital Media - Statistics and Analyses

Market Briefing
Published: April 2016
Pages: 31
Research from: Paul Budde Communication Pty Ltd.
Sector: Broadband & Fixed

From: GBP 253.00
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Guatemala prepares for multi-band spectrum auction by end-2016

Guatemala has emerged from a number of years of economic downturn, with GDP growth of about 4% during the last few years. The fixed-line market shrank for the first time in 2009, a trend which has been maintained since and partly attributed to customer adoption of mobile voice and data services as an alternative platform. Indeed, poor infrastructure has led to the country having one of the lowest fixed-line teledensities in the region. The broadband market has continued to grow but at a slower rate while the mobile telephony market has shown remarkably strong growth in recent years. As a result, broadband availability is limited. The outlook for the remainder of 2016 is characteristic of former years, with the fixed-line market likely to stagnate while the fixed broadband and mobile sectors develop steadily.

The anticipated growth in GDP per capita further into 2016 and 2017 will provide greater disposable household revenue and so stimulate demand for telecom and ICT services. This would be more marked should the country free itself from its legacy of violence, poverty, and corruption, factors which continue to inhibit prospective investors.

Among the poorer countries in Latin America, Guatemala’s telecom infrastructure has suffered from years of underinvestment from state and provincial governments. Network upgrades, in both the fixed-line and mobile sector, have largely been undertaken by the private sector. A number of key players, including Telefónica and América Móvil, are regional and global powerhouses which can tap into expertise and financial resources to bolster their Guatemalan businesses. Given the commercial impetus of these operators, insufficient government financial investment has resulted in many regional areas remaining with poor or non-existent services. Nevertheless, the country benefits from one of the most open regulatory frameworks, with all telecom sectors having been open to competition since 1996.

América Móvil controls about 75% of the fixed lines in service through its subsidiary Claro. 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 on a par with the regional average, while the strong growth in the mobile subscriber base is a further indication that consumers are leaning to mobile telephony as an alternative to fixed-line services.

Key developments:

  • Regulator prepares for multi-spectrum auction by end-2016;
  • Movistar and Tigo invest to extend LTE services;
  • International mobile money remittance services gain traction;
  • América Móvil’s AMX-1 cable enters service, providing connectivity between Guatemala and several countries including the US and Brazil;
  • Report update includes the regulator’s market data to June 2015, operators’ data to Q4 2015, recent market developments.

Guatemala – key telecom parameters – 2015 (e)

Penetration of telecoms services:
Penetration
Fixed internet users
22.5%
Mobile
85.6%
Fixed-line telephony
14.3%
Fixed-line broadband
12.3%

(Source: BuddeComm)

Companies mentioned in this report:

Tigo (Millicom), Telefónica (Movistar), Claro (Telgua), Guatel, Cablenet, Unitel, Comcel, A-Tel

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