El Salvador - Telecoms, IP Networks and Digital Media - Statistics and Analyses

El Salvador - Telecoms, IP Networks and Digital Media - Statistics and Analyses

Regulator re-opens 1700MHz and 2100MHz band auction

El Salvador is the smallest country in Central America. Economic prosperity has been stymied by income inequality, poor infrastructure and inadequate social capital.

Despite these difficulties, the telecom sector has been one of the more successful within the overall economy. This is particularly true of the mobile telephony and data sectors, which are emerging as the country's preferred telecom services given the poor state of fixed-line infrastructure in many areas. The use of text messaging and multimedia has gained traction as an alternative for voice services, and there is a clear trend towards services supported by 3G networks as these are expanded by network operators.

El Salvador's fixed-line teledensity is substantially lower than the Latin American and Caribbean average. However, there has been a significant drop in the number of fixed lines since 2010, largely due to the substitution for mobile-only alternatives.

Mobile penetration is remarkably high considering El Salvador's economic indicators, being about a third higher than average for Latin America and the Caribbean. Of the estimated total number of telephones in the country, 11% are fixed and 91% are mobile.

El Salvador's telecom legislation is one of the more liberal in Latin America, encouraging competition in most aspects of the telecoms sector and permitting foreign investment in all areas. However, there are no regulations as yet which promote wholesale broadband, and thus the ADSL market remains a virtual monopoly for Claro. The only effective cross-platform competition in the broadband market comes from the few cable operators.

Although many companies launched services when the telecom sector was liberalised, the market has been undergoing a gradual process of consolidation, leaving a few dominant multinational operators (notably Millicom's Tigo, América Móvil's Claro, and Telefónica's Movistar), which have managed to expand into almost all sectors through a process of convergence.

The mobile market is served by five operators: Tigo, Movistar, Claro, Digicel, and Intelfon.

The fastest growing sectors in coming years will continue to be pay TV and broadband (both fixed and mobile). The outlook is especially promising for mobile broadband, which could help to bolster the slipping mobile ARPU figures in the medium term. The longer-term prospect is also promising, particularly in the mobile sector where competition between Claro, Tigo, and Telefónica will oblige the operators to diversify services and reduce prices.

Key developments:

Regulator re-opens spectrum auction for spectrum in the 1700MHz and 2100MHz bands;
ASO to be completed by 2018;
Central Reserve Bank finalises regulatory framework for mobile financial services; enabling a range of m-payment services via subsidiary companies set up by MNOs;
Tigo launches satellite TV service, rebrands cable, broadband and pay-TV services as Tigo Star';
Fixed-line and mobile interconnection rates reduced;
Mobile network operators invest to provide near national mobile broadband coverage by end-2015;
Regulator's market data updates to December 2014, telcos' financial and operating data to Q1 2015, recent market developments.

Market penetration rates in El Salvador's telecoms sector 2015 (e)
Penetration of telecoms services: | Penetration
Fixed-line telephony | 16.3%
Internet users | 30%
Fixed broadband | 5.8%
Mobile SIM (population) | 146%
(Source: BuddeComm)

Companies mentioned in this report include:

América Móvil (Claro), Millicent International (Tigo), Telefónica (Movistar), Red, GCA Telecom, Salnet, Amnet, Sky TV.

1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 Market analysis latest developments
5. Regulatory environment
5.1 Regulatory authority
5.1.1 Superintendencia General de Electricidad y Telecomunicaciones (Siget)
5.2 Market liberalisation
5.3 Privatisation of Antel
5.5 Regulated call rates
6. Fixed network operators
6.1 Introduction
6.2 Claro/CTE Telecom (América Móvil)
6.3 Telefónica/Movistar
7. Telecommunications infrastructure
7.1 National telecom network
7.2 International infrastructure
7.2.1 Interconnection with other Central American countries
7.2.2 Submarine cable networks
7.2.3 Satellite networks
8. Wholesale
9. Broadband market
9.1 Introduction and statistical overview
9.1.1 Market analysis
9.1.2 Broadband statistics
9.1.3 Wireless Local Loop (WLL)
10. Digital media
10.1 Introduction
10.1.1 Tigo (Millicom)
10.2 Communications
10.2.1 IP and Voice over Internet Protocol (VoIP)
11. Mobile communications
11.1 Market analysis latest developments
11.1.1 Mobile statistics
11.1.2 Mobile data
11.1.3 Mobile broadband
11.2 Regulatory issues
11.2.1 Mobile Number Portability (MNP)
11.2.2 Mobile Termination Rates (MTRs)
11.2.3 Spectrum auction delays
11.3 Mobile infrastructure
11.3.1 Digital networks
11.4 Major mobile operators
11.4.1 Tigo (Millicom)
11.4.2 Claro (América Móvil)
11.4.3 Movistar (Telefónica Móviles)
11.4.4 Digicel
11.4.5 RED (Intelfon)
11.5 Mobile content and applications
11.5.1 Money transfer, m-banking
12. Related reports
Table 1 Country statistics El Salvador 2015 (e)
Table 2 Telephone network statistics 2015 (e)
Table 3 Internet user statistics 2015 (e)
Table 4 Broadband statistics 2015 (e)
Table 5 Mobile statistics 2015 (e)
Table 6 National telecommunications authority
Table 7 Evolution of GDP in El Salvador 2000 - 2015
Table 8 Telecommunications service revenue and capital investment 2000 - 2011
Table 9 Telecom revenue by sector 2013 - 2014
Table 10 Claro fixed lines in service 2003 - 2009
Table 11 Historical - Fixed lines in service and teledensity 1997 - 2004
Table 12 Fixed lines in service and teledensity 2005 - 2015
Table 13 International bandwidth 2001 2014
Table 14 Historic - Internet users and penetration rate 1996 - 2004
Table 15 Internet users and penetration rate 2005- 2014
Table 16 Broadband subscribers and penetration rates 2002 2015
Table 17 Fixed-line broadband subscribers and penetration rates 2002 2014
Table 18 ADSL subscribers 2003 - 2015
Table 19 Fibre, other broadband subscribers 2013 - 2015
Table 20 Fixed broadband connections by access speed 2012 - 2014
Table 21 TV subscribers by platform 2012 - 2015
Table 22 Historic - Mobile subscribers and penetration rate 1997 - 2004
Table 23 Mobile subscribers and penetration rate 2005 - 2015
Table 24 Mobile operators' market share 2003 - 2012
Table 25 Prepaid/postpaid ratio 2002 - 2014
Table 26 Prepaid/postpaid subscribers 2008 - 2014
Table 27 SMS traffic 2008 - 2014
Table 28 MMS traffic 2008 - 2014
Table 29 Active mobile broadband subscribers 2009 - 2014
Table 30 Mobile broadband subscribers by type 2013 - 2015
Table 31 Tigo mobile subscribers 1997 2015
Table 32 Historic - Claro mobile subscribers 2002 - 2008
Table 33 Historic - Movistar mobile subscribers 2000 - 2008
Table 34 Digicel mobile subscribers 2003 2008; 2014
Table 35 Historic - RED mobile subscribers 2005 - 2008
Chart 1 Fixed lines in service and teledensity 2005 2015
Chart 2 Internet users and penetration rate 2005- 2015
Chart 3 Broadband subscribers and penetration rates 2002 2015
Chart 4 Mobile subscribers and penetration rate 2005 2015
Chart 5 Tigo mobile subscribers 2002 2015
Exhibit 1 Americatel historical
Exhibit 2 Saltel historical
Exhibit 3 Claro/CTE Telecom company history
Exhibit 4 Amnet
Exhibit 5 Tigo/Telemóvil company histor

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