Executive summary
Guatemala prepares for multi-band spectrum auction by end-2016Guatemala has emerged from a number of years of economic downturn, with GDP growth of about 4% during the last few years. The fixed-line market shrank for the first time in 2009, a trend which has been maintained since and partly attributed to customer adoption of mobile voice and data services as an alternative platform. Indeed, poor infrastructure has led to the country having one of the lowest fixed-line teledensities in the region. The broadband market has continued to grow but at a slower rate while the mobile telephony market has shown remarkably strong growth in recent years. As a result, broadband availability is limited. The outlook for the remainder of 2016 is characteristic of former years, with the fixed-line market likely to stagnate while the fixed broadband and mobile sectors develop steadily.
The anticipated growth in GDP per capita further into 2016 and 2017 will provide greater disposable household revenue and so stimulate demand for telecom and ICT services. This would be more marked should the country free itself from its legacy of violence, poverty, and corruption, factors which continue to inhibit prospective investors.
Among the poorer countries in Latin America, Guatemala’s telecom infrastructure has suffered from years of underinvestment from state and provincial governments. Network upgrades, in both the fixed-line and mobile sector, have largely been undertaken by the private sector. A number of key players, including Telefónica and América Móvil, are regional and global powerhouses which can tap into expertise and financial resources to bolster their Guatemalan businesses. Given the commercial impetus of these operators, insufficient government financial investment has resulted in many regional areas remaining with poor or non-existent services. Nevertheless, the country benefits from one of the most open regulatory frameworks, with all telecom sectors having been open to competition since 1996.
América Móvil controls about 75% of the fixed lines in service through its subsidiary Claro. Mobile telephony has been the most developed telecom market in Guatemala for several quarters and is likely to remain so for the next few years given the poor condition of fixed-line services. The intense competition amongst operators has helped to improve services and lower prices. Mobile penetration is on a par with the regional average, while the strong growth in the mobile subscriber base is a further indication that consumers are leaning to mobile telephony as an alternative to fixed-line services.
Key developments:
Regulator prepares for multi-spectrum auction by end-2016;
Movistar and Tigo invest to extend LTE services;
International mobile money remittance services gain traction;
América Móvil’s AMX-1 cable enters service, providing connectivity between Guatemala and several countries including the US and Brazil;
Report update includes the regulator’s market data to June 2015, operators’ data to Q4 2015, recent market developments.Guatemala – key telecom parameters – 2015 (e)
Penetration of telecoms services:Penetration
Fixed internet users22.5%
Mobile85.6%
Fixed-line telephony14.3%
Fixed-line broadband12.3%
(Source: BuddeComm)
Companies mentioned in this report:
Tigo (Millicom), Telefónica (Movistar), Claro (Telgua), Guatel, Cablenet, Unitel, Comcel, A-Tel
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1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 The market in 2015
4.2 Historic overview
5. Regulatory environment
5.1 Regulatory authority
5.1.1 Superintendencia de Telecomunicaciones (SIT)
5.2 Telecom sector liberalisation
5.3 Privatisation of Guatel/Telgua
5.4 DR-CAFTA
5.5 Interconnection
5.6 Foreign investments
6. Fixed network operators
6.1 Claro/Telgua (América Móvil)
6.2 Movistar (Telefónica)
7. Telecommunications infrastructure
7.1 National fibre-backbone networks
7.1.1 Public payphones
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. Broadband market
8.1 Introduction and statistical overview
8.1.1 Market analysis
8.1.2 Broadband statistics
9. Digital media
9.1 Cable TV
9.2 Satellite-based digital pay TV developments
9.3 Digital Terrestrial TV (DTTV)
9.4 Bundled services
9.5 Communications
9.5.1 IP and Voice over Internet Protocol (VoIP)
10. Mobile communications
10.1 Market analysis
10.1.1 Mobile statistics
10.1.2 Mobile voice services
10.1.3 Mobile broadband
10.2 Regulatory issues
10.2.1 Spectrum auction
10.3 Mobile infrastructure
10.3.1 Analogue networks
10.3.2 Digital networks
10.3.3 Other infrastructure developments
10.4 Major mobile operators
10.4.1 Tigo (Millicom)
10.4.2 Claro (América Móvil)
10.4.3 Movistar (Telefónica)
10.4.4 RED (Intelfon)
10.5 Mobile content and applications
10.5.1 Mobile TV
10.5.2 M-payment
11. Related reports
Table 1 – Country statistics Guatemala – 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 Guatemala – 2000 - 2015
Table 8 – Fixed lines by main operator – 2009 - 2015
Table 9 – Fixed lines by minor operator – 2009 - 2015
Table 10 – Share of fixed lines by operator – Jun 2015
Table 11 – Historical - Fixed lines in service and teledensity – 1996 - 2009
Table 12 – Fixed lines in service and teledensity – 2010 - 2016
Table 13 – Public payphones in service – 2003; 2008; 2012-2015
Table 14 – Historical - Internet users and penetration rate – 1997 - 2009
Table 15 – Internet users and penetration rate – 2010 - 2016
Table 16 – Broadband subscribers and penetration rates – 2005 - 2016
Table 17 – Historic - Mobile subscribers and penetration rate – 1997 - 2009
Table 18 – Mobile subscribers and penetration rate – 2010 - 2016
Table 19 – Mobile subscribers by operator (regulator data) – 2003 - 2015
Table 20 – Market share by mobile operator – 2000 - 2015
Table 21 – Mobile traffic by operator – 2014 - 2015
Table 22 – Mobile traffic market share by operator – 2014 - 2015
Table 23 – Mobile prepaid/postpaid ratio – 2002 - 2015
Table 24 – Tigo – mobile subscribers – 2000 - 2015
Table 25 – Claro – mobile subscribers – 2000 - 2015
Table 26 – Movistar Guatemala mobile subscribers – 2003 - 2015
Chart 1 – Fixed lines in service and teledensity – 2005 – 2016
Chart 2 – Broadband subscribers and penetration rates – 2005 – 2016
Chart 3 – Mobile subscribers and penetration rate – 2003 – 2016
Chart 4 – Mobile subscribers by operator (regulator data) – 2003 – 2015
Chart 5 – Market share by mobile operator – 2000 – 2015
Exhibit 1 – Major submarine cable networks connecting Guatemala
Exhibit 2 – BellSouth Guatemala – history
