El Salvador - Telecoms, Mobile and Broadband

Additional Information

Executive Summary

El Salvador is the smallest country in Central America, with the third largest population. It suffers from extreme income inequality, rampant crime rates, lack of infrastructure, inadequate social capital, and one of the highest homicide rates in the world.

El Salvador’s fixed-line teledensity is about 32% higher than average for Central America, while its mobile telephony penetration is about 31% higher - indeed, both are remarkably high compared with the country’s other economic indicators.

Fixed-line telephony has been functioning in a competitive environment for many years, with several operators offering local and international telecom services. América Móvil’s CTE, trading as Telecom, is the incumbent fixed-line operator in the country, with a market share of around 78%.

In the broadband market, CTE has a virtual monopoly over ADSL access, but the country’s leading cable TV company, Amnet, offers a triple play service combining telephony, cable modem broadband, and cable television.

Competition in the mobile market is intense, with five operators offering services. The market leader is Millicom’s Tigo, followed by América Móvil’s Claro. Digicel is gaining ground, having increased its mobile market share from about 7% to 17% in only one year.

Key Highlights

• Three operators have deployed WiMAX networks in El Salvador. With a high population density, a growing demand for broadband, and a shortage of fixed lines, El Salvador offers promising prospects for WiMAX investors. For more information, see El Salvador - Telecoms, Mobile and Broadband, chapter 9.3.
• Cable TV and triple player Amnet has come under the umbrella of Millicom International, which also owns El Salvador’s mobile telephony leader Tigo. For more information, see El Salvador - Telecoms, Mobile and Broadband, chapter 10.2.1.
• Both Claro and Tigo have launched 3G mobile services based on WCDMA technology. For more information, see El Salvador - Telecoms, Mobile and Broadband, chapter 11.2.1.