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Honduras - Telecoms, Mobile and Broadband - Statistics and Analyses

MIC calls off talks with Liberty Global for Tigo Honduras merger

Honduras is among the poorest countries in Central America and has long been plagued by an unstable political framework which has rendered telecom sector reform difficult. This has created real difficulties for telcos as well as consumers. Fixed-line teledensity, at only 5.9%, is significantly lower than the Latin American and Caribbean average. Poor fixed-line infrastructure has been exacerbated by low investment and topographical difficulties which have made investment in rural areas unattractive or uneconomical. Consequently, the internet has been slow to develop: DSL and cable modem technologies are available but are relatively expensive and thus take-up has been low thus far, while higher speed services are largely restricted to the major urban centres. Nevertheless, the demand for broadband is steadily increasing and there are been some investment in network upgrades to fibre-based infrastructure.

On the positive side, these factors have encouraged consumer take-up of mobile services, a sector where there is lively competition supported by international investment. Even so, mobile penetration is substantially below the regional average. Revenue growth from the mobile sector looks promising in coming years as operators invest in their networks, expand their reach and upgrade their capabilities to accommodate mobile broadband services. Mobile data as a proportion of overall mobile revenue has increased steadily, though low-end SMS services will continue to account for the bulk of data revenue for some years.

Political developments during the last few years have not facilitated the much-needed reform of legislation governing the telecoms sector. Partly this is due to political stalemate and ineffective legislators, but underlying the difficulties are the close ties between executives at the incumbent Hondutel and key members of the government.

Key Developments:

  • MIC ends talks to merge Central American units with Liberty Latin America;
  • Regulator preps for multi-spectrum auction aimed at attracting a fourth mobile player;
  • Claro and Tigo extend LTE services;
  • Universal Access program providing free internet services to public schools;
  • Tigo Money mobile cash transfer service signs up more than one million users;
  • Tigo launches satellite service;
  • Spectrum auction encourages mobile broadband services take-up;
  • Report update includes the regulator's market data to December 2018, telcos' operational data updates to Q1 2019, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Hondutel, Comunitel, MultiData, Millicom (Tigo), Digicel, América Móvil (Claro).

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Honduras - Telecoms, Mobile and Broadband - Statistics and Analyses
Published By :Paul Budde Communication
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