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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More on this topic

El Salvador: Auction of Spectrum for Mobile Phone Services

November 2014

The Superintendency of Electricity and Telecommunications is preparing the tender conditions for an auction of 40 MHz of radio spectrum for mobile operators.

The Superintendency of Electricity and Telecommunications (SIGET) plans to re launch the auction. Although the process of calling on the companies concerned has not yet started, a process is underway to determine if it will be opened up to new companies or only those already established.

Auction of Cellular Frequencies in El Salvador is Postponed

February 2014

The auction of 40 MHz of electric spectrum will be rescheduled while appeals filed by two interested companies are reviewed.

The Superintendency of Electricity and Telecommunications (Siget) has 20 working days to determine whether to reschedule the auction of 40 MHz of spectrum for mobile telephony. This was established by a resolution of the Board of the entity.

Radio Spectrum: Uncertainty Over License Renewal

February 2014

The arrival of new mobile services could be delayed if the uncertainty surrounding the renewal of licenses to mobile operators continues.

A report by the company GSMA, a firm that brings together more than 800 mobile operators in the world, presented a study which analyzes the state of the radio spectrum in Latin America and how the licenses are renewed for use in countries such as Costa Rica, Guatemala and Panama.

Concession of Frequency for 40 MHz Under Public Consultation

December 2013

After suspending it for a second time, the Superintendency of El Salvador is consulting with operators over the tender for the radio spectrum for mobile telephony.

Luis Mendez, chief of the General Superintendency of Electricity and Telecommunications (SIGET), explained that they are resolving and organizing a series of hearings with telephone operators and according to the agreement they reach with the parties, they will decide whether to resume or delay the process longer.

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