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 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.
The state run telecommunications company has announced it will be investing $100 million in internet infrastructure to offer broadband and fiber optics services.
The general manager of the Honduran Telecommunications Company (Hondutel), Jesus Mejia, said in remarks published by Latribuna.hn that they will be investing approximately $100 million, about 2,200 million lempiras to increase supply in two market segments.
According to the Inter-American Development Bank, broadband access increases company productivity and allows access to more and better information helping decisions to be made efficiently and at less cost.
From a statement issued by the Inter-American Development Bank (IDB):
Companies that have adopted broadband operations have increased their productivity by 10 percent on average, according to the McKinsey Global Institute.
In Panama it is up to 5.12 Mbps, in Nicaragua 3.53, in Honduras 3.43, Guatemala 3.32, in El Salvador 3.10, and in Costa Rica up to 2.81 Mbps.
The data has been provided by Speedtest.net, which based on download speed controls made by million of users, maintains a ranking of 188 countries according to the average download speeds in Mbps over the past 30 days where the average distance between the client and the server is less than 300 miles.
The road to sustainable human development passes inexorably thorough the digitization of national economies.
A book published by CEPAL entitled "Digital Economy for structural change and equality," reports on the profound differences between the Latin American countries with respect to the integration of new information technologies and telecommunications.
Communications currently being the engine of development, Latin America is moving at low speeds in a vehicle that is too costly.
An article in Elfinancierocr.com quotes the President of the Inter-American Development Bank (IDB), Luis Alberto Moreno, who highlights what all Latin Americans are suffering from: a brutal disadvantage in the availability of broadband connectivity, compared with developed countries.
The Honduran phone company will create a publicly owned subsidiary dedicated to mobile broadband, with Hondutel still being the majority shareholder.
The general manager of the Honduran Telecommunications Company (Hondutel), Romeo Vásquez Velásquez, said this business model will enable the institution to get out of the financial crisis that has engulfed it due to a lack of investment.
Regarding for fixed broadband, there are only 10 lines per 100 people in the region, and as for mobile broadband, the average penetration is 15 lines per 100 people.
A statement from the Inter-American Development Bank (IDB) reads:
Report: how to expand access and lower bandwidth costs in Latin America and the Caribbean.
Companies, academic institutions and international organizations have proposed options for reducing the digital divide.
America Movil, Claro's parent company, is investing in the development and delivery of broadband services.
Users of the Claro network, and now Digicel, will have access to greater geographical coverage, better quality and innovation in services, and higher speeds.
So said the director of Claro Honduras, Luis del Cid, who announced the acquisition, which was negotiated between the parties in the first quarter of 2011.
Broadband telecommunications technologies have the potential to stimulate rapid economic growth and facilitate job creation.
The report, "Broadband: a platform for progress", published by the United Nations, urges countries to implement national plans for broadband, so as not to risk losing the benefits of global high-speed digital communication .
The report shows, by way of example, that every 10 percent increase in broadband penetration in China could contribute to an increase of 2.5 percent extra growth in the gross domestic product (GDP). Other data cited in the report indicates that for countries of low and middle incomes, a 10 percent increase in broadband penetration could mean up to a 1.4 percent point increase in economic growth.
The Honduran government signed a $ 50 million partnership with Laticom International to develop the telecommunications system.
Over the period of the contract, U.S. company Laticom International will upgrade Hondutel´s transfer network using MPLS technology and broadband internet services for residential and business customers through ADSL.
"Currently, there are private companies offering data transfer services with capacity of up to 10 gigabytes. Through the strategic alliance, the Honduran government would carry data with a capacity of up to 60 gigabytes," informs Latribuna.hn.
Like electricity or roads, digital communications with unlimited bandwidth is essential for development.
Question: "In Costa Rica, broadband Internet implies a top speed of 512 Kbps. The government's plan is to raise that limit to 1,544 Mbps Where does that leave the country?"
Answer: "This leaves the country at the end of country rankings. And that's bad."
In 2015 Central America will sell $2 billion in paid television and broadband services, both wireless and cable.
A report from consulting company Signals Telecom foresees a battle in broadband services, as the average speeds offered in Central America are below South American and Caribbean averages.
They also expect competition to cause improvements in 3G coverage, and the introduction of more added value services.