Telecommunications industry in Central America - statistics & facts

The telecommunications market in Central America has gone through constant growth over the last decade. Despite the COVID-19 outbreak and its effects on industries worldwide, the market continues to grow, recovering after a slight slowdown at the beginning of the pandemic. It is estimated that communication services market revenue in Central America will amount to over eight billion U.S. dollars in 2022.

Challenges

Although the Central American telecommunications market looks promising in the next few years, there is still room for improvement. Coverage and reachability are some of the biggest challenges faced in the region, as constant technological development forces the market to adapt in order to satisfy the growing demand for communication services. One such example can be observed in rural communities, areas that suffer from limited broadband coverage due to a lack of infrastructure.

The mobile world

Central America is going through a period of digital transformation in which mobile devices have become essential to many. Mobile cell phones have enabled millions of people to stay connected in regions where fixed broadband networks are limited or completely unavailable. This is particularly evident when looking at the 22 million connections in Guatemala, of which 20 million are from mobile services. This has been supported by a rise in mobile device purchases, with the import value of cell phones in Guatemala amounting to approximately 224 million U.S. dollars during the first half of 2020 – the highest among Central American countries.

Impact of covid-19

The pandemic has forced people into their homes, resulting in noticeable changes to the telecommunications industry in Central America. Video call platforms have become the norm for work and school, while online entertainment and digital delivery platforms have soared in popularity and demand. While mobile services represent a significant share of the market in the region, fixed broadband services have also continued to grow as people continue to make the transition to working from home. The number of fixed broadband subscriptions in Central America  reached 3.4 million in 2020 and is forecast to grow further in years to follow. In comparison, mobile cellular subscriptions  have stalled at around 58 million and are expected to remain at a similar level over the next few years.

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