Assessing the impact of market structure on innovation and quality in Central America

Central America is lagging behind in mobile broadband deployment and adoption, putting the region’s future economic development at risk. While 4G networks are available to 35% of the population in Central America, 4G still only accounts for around 5% of all mobile connections in the region – a sixth of that seen in South America. This is problematic as new technology cycles bring new and better services at lower prices.

Closing this gap requires the promotion of market structures that boost competition in investment and innovation, and public policies that take the entire digital ecosystem into account. This report examines the development of mobile broadband in six countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) across the region and reveals how market structures are affecting network coverage, quality and innovation. It identifies critical areas where policy reform is needed to encourage investment and innovation, enabling operators to deliver high-quality mobile broadband services to consumers and businesses across the region.