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Central America Telecommunications Report Q3 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: August 2009 Product Code: R302-7554 Description End of year data shows that Panama’s mobile market had a higher penetration rate than BMI hadpreviously estimated. The introduction of two new operators should also mean that the market’s growthremains robust. Newcomer Digicel announced that it had added 1.1mn new subscribers in Honduras andPanama over its first five months. BMI estimates that Honduras took the bulk of these as there is greaterscope for growth and the operator launched a month earlier in the market. However, Digicel’s presence inPanama helped to maintain the strong growth rate seen in the market. A similar effect on the Honduranmarket has also been seen by Digicel’s entrance to the market and the company has indicated its interestin Costa Rica and Nicaragua where its presence would almost certainly be a real boost to growth in thesemarkets.Meanwhile, the established operators, América Móvil, Telefónica and Millicom International Cellular,seemed to report slower growth in Q109, a result of greater competition and higher penetration rates. BMI forecasts that only Costa Rica and Nicaragua will have penetration rates below 100% by the end ofour forecast period although growth could accelerate in either as additional competition is introduced.Costa Rica’s market is set to see competition enter for the first time with the first six companies licensedto provide internet services in the country. Mobile services are not set to enter the market until 2010 butthere is expected to be very high interest from regional operators in entering one of the few remainingtelecoms monopolies in the region. Incumbent Instituto Costarricense de Electricidad (ICE) has beenpreparing itself for the entrance of competition, with contracts awarded to enable it to offer a wider rangeof mobile services. In our Business Environment Rankings Belize’s tumble to 11th place caused the only major shake up inthe table. A revision of subscriber figures led us to downgrade forecasts for growth lowering the country’sTelecoms Market score. Panama’s prospective growth on the other hand increased on the back of twonew competitors entering the market. Honduras, Costa Rica and Nicaragua remain at the bottom of ourrankings for a variety of reasons but their poor Telecoms Market scores particularly hold them back. Table of Contents
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