El Salvador: Uncertainty in Telecommunications Sector

An operator has warned that investments in the sector will be jeopardized by uncertainty regarding the renewal of concessions.

Wednesday, February 17, 2016

The breaking down of the relationship between the Salvadoran government and telecommunications companies has embarked on a new chapter. Uncertainty about whether the General Superintendency of Electricity and Telecommunications (Siget) will or will not auction 40 megahertz of the radio spectrum, is generating unease among some operators.

"... As a company, we need clarity in this regard, in order to continue investing in the country. Three years after concluding the award, there is still no certainty over whether they will renew the concession, or if they will open up the opportunity to gain further portions of the spectrum. Therefore, if we, from this moment, two years later, still do not have any clarity, investments will tend to decrease because there is uncertainty, " said Douglas Ochoa, director of Public Affairs for Central Telefonica to El Diario de Hoy.

In the view of Ochoa, "... the country is lagging behind compared to its Central American and Latin American neighbors, where companies have renewed their concessions and invested in better technology in order to evolve in the era of LTE, 4G, and even the 4.5G. In other countries, companies has greater allocation of frequencies and they are reviewed and renewed, but in El Salvador they do not have such certainty " reported Elsalvador.com.

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