Costa Rica
Expected To Join Wireless Boom
Costa Rica, the second-smallest wireless
market in Latin America, is expected to see
a strong increase in wireless subscriptions
as a result of the liberalization of its
market next year, which includes the lifting
of the monopoly of state-run telecom
Instituto Costarricense de Electricidad
(ICE).
Cable & Wireless Panama, Digicel, Movistar
and Tigo have informed Costa Rica’s
Superintendence of Telecommunications
(SUTEL) of their decision to enter the
market, while Claro (the brand owned by
Mexico-based America Movil) is also expected
to join, according to Signals Telecom
Consulting.
“These operators will represent significant
competition for ICE, mainly in the prepaid
market, accelerating the pace of customer
acquisition,”
Elias Vicente, senior analyst for Signals
Telecom Consulting said in a statement. “The
low level of mobile market penetration in
Costa Rica, and the incipient prepaid
service, makes it an interesting target with
high potential for rapid growth in line
numbers.”
Costa Rica was one of the markets that last
year saw the strongest growth in Latin
America, boosting wireless subscriptions by
25.1 percent to 1.9 million. That was the
tenth-highest growth in the region. Other
growth champions include Honduras (up 43.2
percent – the third-highest in Latin
America), Nicaragua (43.2 percent) and
Guatemala (25.6 percent).
Central America’s wireless sector is
booming.
Four Central American countries are among
the top ten growing markets in Latin America
in percentage terms, while two are among
those that are growing most in real terms.
Last year Central America reached a total of
33.0 million wireless subscriptions, an
increase of 27.8 percent. By comparison,
Latin America as a whole grew by 20.1
percent and worldwide growth was 18.8
percent, according to a Latin Business
Chronicle analysis of new data from the
International Telecommunications Union. In
real terms, Central America added 7.2
million new wireless subscriptions.
And the potential for future growth is
strong.
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