Instituto Costarricense de Electricidad is evaluating the Salvadoran market to determine if there is an opportunity to establish itself as a new broadband operator.
The state telecommunications company already has a presence in Nicaragua, where in conjunction with the state company Enatrel, it operates the company Telecomunica, which provides internet and television services.
"The regulation exercised by the Siget in the retail mobile market discourages investment in infrastructure and the acquisition of larger portions of the spectrum."
Without the regulation of retail prices, the Salvadoran mobile phone market would have incentives for investments with social and economically desirable ends, concludes the study entitled "Analysis of the regulation of retail prices of mobile telephony in El Salvador",prepared by the Center for Studies on Telecommunications in Latin America.
Preparations are being made to announce before the end of the year a call for the tender of 120 MHz of radio spectrum for mobile telephony.
Blanca Coto, chief of the General Superintendency of Electricity and Telecommunications (SIGET), told Laprensagrafica.com that they are"... 'soon to start the bidding process to broaden the spectrum available for mobile phones, to increase access'. "
It has been announced that Telefonica will invest $250 million in implementation, in various stages, of the LTE telecommunications network.
From a statement issued by the Presidency of El Salvador:
The Spanish giant in the telecommunications industry, Telefonica, confirmed on Tuesday the good investment climate in El Salvador after announcing an investment of more than $250 million in the country with the installation of Movistar 's LTE network, using the latest technology for internet connection.
9.3 million mobile phone lines were registered at the end of 2015, but they are only able to operate on the 3G network as the 4G network has not even been put out to tender yet.
While the rest of the region has already made progress in the use of 4G technology, in El Salvador the process for awarding frequencies of that band between telecommunications companies has not yet even started.In the developed world they are now planning the implementation of 5G technology.
The only countries in America where mobile phone prices are still regulated are El Salvador and Costa Rica. It is no coincidence that these countries are among the last in the rankings for speed of mobile internet services.
EDITORIAL
And it is no coincidence that these two countries also suffer from the existence of the heaviest controlling bureaucracies in the Central American isthmus, with clear consequences for the slow adaptation to changes experienced by the global economy, particularly globalization.
In 2015 Central American countries bought $1251 million worth of mobile phones, of which 39% came from the US, 26% from China, 19% from Hong Kong and 5% from South Korea.
Figures from the Business Intelligence unit at CentralAmericaData.COM com indicate that in 2015 the main importer of cell phones was Guatemala, with $419 million, followed by Costa Rica, which spent $364 million, El Salvador, with $181 million, and Honduras, which imported $141 million worth of mobile phones.
The commercial potential of mobile devices continues to grow in emerging markets, where 93% of people check their phone in the first hour after waking up.
A global report by Deloitte highlights the growing business potential of mobile devices such as tablets and mobile phones, both in developed and emerging markets.
Five key elements highlighted in the report "Global mobile consumer trends: First Edition" .
In El Salvador appeals filed by the five operators have been rejected and the $2.2 million fine imposed for abuse of their dominant position has been upheld.
Confirmation has been given of the fine imposed on the operators Digicel, S. A. de C. V., Telefónica Móviles El Salvador, S. A. de C. V., Compañía de Telecomunicaciones de El Salvador, S. A. de C. V.(CTE, S. A. de C. V.), CTE Telecom Personal, S.
Digicel, Telefonica Moviles El Salvador, CTE, CTE Telecom Personal and Telemóvil El Salvador filed appeals against the $2.2 million fine imposed on them for abuse of their dominant positions.
From a statement issued by the Superintendency of Competition:
The five telephone operators punished for abusing their dominant position submitted an appeal to the Board of Directors of the Superintendency of Competition on 4 November.
Digicel, Telefonica Moviles El Salvador, CTE, CTE Telecom Personal and Telemóvil El Salvador were fined $2.2 million for abusing their dominant position to impede the entry of new competitors.
From a statement issued by the Superintendency of Telecommunications:
SC sanctions telecoms companies for abusing dominant position:
The Board of Directors of the Superintendency of Competition resolved to sanction five telephony operators proven to have each committed abuse of their dominant position typified in Article 30, letter a) of the Competition Act. The investigation, which was based on a complaint filed on October 24, 2013 by Platinum Enterprises, SA de CV, concluded that each of the defendants abused their dominant position by hindering the entry of new competitors or expansion of existing ones in the market for intermediate services for incoming international traffic for call termination on their own networks.
Operators are opposed to the proposal to tax phone bills and purchases of technological equipment, while the government has shown itself unwilling to cooperate by reducing tariffs.
While the government insists that telecommunications companies must lower telephone rates in order to minimize the impact of a future tax of 10% for public security, telecoms companies have defended themselves arguing that "...
The company Imcard-Mediafone has been selected to implement and operate the system for number portability in the country, after submitting a bit in the tender for $1.7 million.
From a statement issued by the General Superintendence for Electricity and Telecommunications (SIGET):
The General Superintendency for Electricity and Telecommunications (SIGET) and the Technical Advisory Committee for Number Portability in El Salvador, are pleased to inform the public in general:
Only El Corte Inglés and the consortium Imcard-Mediafone submitted bids for $2.3 million and $1.7 million, respectively, in the competition for awarding number portability in the country.
Although initially more companies had shown interest in the tender, the General Superintendence of Electricity and Telecommunications received only the two aforementioned offers.
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.