El Salvador’s telecom sector attracting more investment
Telecom users in El Salvador continue to be hampered by poor fixed infrastructure, which has translated into a strong reliance on mobile networks for voice and data services. As a result, the mobile penetration rate is particularly high for the region.
The telecom regulator has a history of delayed spectrum auctions. This has caused a paucity of spectrum available to the networks operators, in turn hampering their ability to extend the reach of LTE infrastructure and to develop services based on 5G.
There could be a scaling up of investment in the sector following the October 2021 acquisition of Telefónica El Salvador by the UK investment fund General International Telecom, for about $144 million. For Telefónica Group, this was a significant discount on the and $315 million which América Móvil had been prepared to pay before regulatory hurdles scuppered the deal in late 2020.
