Recovery in GDP per Capita in Guatemala Providing Higher Disposable Household Income

As then as being one of the poorer countries in Latin America, Guatemala's socioeconomic indicators are among the worst in the region. A social and political oligarchy has successfully avoided their tax responsibilities with the result that state and provincial governments have insufficient revenue to fund much needed upgrades to telecom infrastructure. As a consequence the market is left to the private sector, and with little government assistance many regional areas remain with poor or non-existent services.

The business environment is as well challenging for foreign investors in spite of national laws granting national treatment to all foreign investors in the telecom sector, and the telecom industry having one of Latin America's most open regulatory frameworks. All telecom sectors, including local telephony, have been open to competition since 1996.

The country's fixed-line teledensity remains very low

Poor infrastructure has meant that in spite of fixed-line competition the country's fixed-line teledensity remains very low, at about 11%%, although it must be regarded as the case may be within Latin America given the context of very low GDP per capita and insignificant government funding. The knock-on effect is that broadband availability, dependant on the copper network infrastructure, is as well poor or non-existent in many rural and isolated areas.

América Móvil controls about 70% of the fixed lines in service through its subsidiary Claro, before known as Telgua. Mobile telephony has been the most developed telecom market in Guatemala for several quarters and is likely to remain so for the at once 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 about average for the region, conclusively remarkably high considering the country's poor socioeconomic indicators. Millicom's Tigo is the mobile market leader, offering services over a GSM/WCDMA network.

Guatemala's broadband market has been slow to develop because of limited infrastructure, widespread poverty, and inadequate education. Technologies used include ADSL, WiMAX, and cable modem. With its ADSL service, Claro is the leading broadband provider.

The country's poverty map

- The telephone system in Guatemala reflects the country's poverty map, with a relatively modern network centred in the city of Guatemala, and woefully in accordance with-serviced rural areas.

- VoIP (Voice over Internet Protocol) is completely deregulated, whether it is PC-to-PC communication or a computer-to-phone link over the internet. As a result, VoIP (Voice over Internet Protocol) has reached widespread acceptance in Guatemala.

The deficiencies of the fixed-line infrastructure

- Due to the deficiencies of the fixed-line infrastructure, WiMAX and mobile broadband have become important alternatives to meet Guatemala's growing broadband demand.

This report covers trends and developments in the telecommunications, mobile, internet and broadband market in Guatemala, including VoIP developments.

- Market and industry analyses, trends and developments- Facts, figures and statistics- Industry and regulatory issues- Infrastructure development- Major Players, Earnings, Subscribers- VoIP- Mobile Voice and Data Markets- Internet and broadband markets- Mobile market

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