Necessity of Broadband Services in Nicaragua: Ken Research


Nicaragua is the largest and least densely populated country in Central America. The telecommunications sector in Nicaragua is fully privatized. Its telecoms market has poor economic achievements, with fixed-line teledensity and mobile penetration. It includes radio, television, fixed & mobile telephones, and the internet.

In Nicaragua, there are three fixed network operators: America Movil (Claro), Movistar (Telefonica) and Yota Nicaragua. America Movil and Movistar companies dominate the telecommunication market in country. They supply various services and products which include: cell, conventional lines, internet and cable television and as well as offers their customers a variety of offers and promotions to remain in the company. In the mobile sector, Movistar holds almost one third of the market, but in the fixed-line sector, it has only about 10% market share. Additionally, Yota is the first 4G internet company in country. Some other operators Russian state corporation Rostejnologuii and IWB holding are also operating in telecommunication market in country.

According to study, “Nicaragua – Telecoms, Mobile and Broadband – Statistics and Analyses” some of the major companies that are currently working in the Nicaragua telecoms, mobile and broadband – statistics and analyses are America Movil, Movistar, Yota de Nicaragua, Xinwei.

In Nicaragua, the development of broadband services had a significant positive impact. Broadband market is segmented into fixed broadband and mobile broadband. Broadband represents the majority of subscription. The fixed broadband market is served by a number of technology platforms including ADSL, fibre-to-the-home (Fttx), WiMAX and leased line. FttH provides high speed internet speed to the customers along with TV and telephone connection at reasonable rates. WiMAX makes up a significant proportion of total fixed broadband subscription. The development of national fixed broadband network is based on fibre.

There are many telecommunication services provided, which are; public interest services, general interest services, special interest services, particular interest services and unregulated services etc. Public-interest services are basic telephone services offered under specific operating conditions and regulated rates on a regular, continuous, equal and fair-price basis. General interest services include mobile telephony, broadcast or subscription television and data transmission. Special interest services include mobile radiolocation of persons, trunk-link services, radiodetermination, earth stations and teleport for satellite communications. Particular interest services include telecommunications services provided by a natural or legal person to meet their communication needs, using their own licensed networks or facilities. Unregulated services include value-added services such as e-mail, voicemail, information services, access to databases and store and forward fax.

The telecommunications and postal services (TELCOR) is the telecom regulatory authority. TELCOR facilitates and regulates the provision of services that generate communications, acting as regulator of the activity, encouraging and stimulating the participation of individuals and intervene when necessary to ensure the universal access to information. TELCOR regulatory provides license to all telecommunication equipment. The licensing procedures mean Submitted application form along with some documents such as basic agreement of non-governmental-organization (NGO) and power to the national representative of the organization.

Nowadays, Nicaraguan communications regulator TELCOR is preparing to update the country’s general law of telecommunications. In addition, World Bank is also funding the Caribbean regional communications infrastructure program to improve broadband in Nicaragua’s eastern regions. In 2018, Telefonica is planning to deploy a 3,158 mile fibre cable covering Central America and Mexico to Panama via Guatemala, El Salvador, Nicaragua and Costa Rica.

 It is estimated that Mobile data revenue will expand at the fastest CAGR of 13.0% over 2017-2022 driven by LTE network expansion along with the rising demand for high-speed mobile data and increased availability of LTE-enabled smart-phones. It is also expected that the rollout of a national fiber-optic network, backed by international organizations, will drive access to fixed broadband in the country.

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