Company head Denis O’Brien has invested $450 million (€360 million) in Honduras since Digicel’s launch in late 2008, and is going head-to-head with Mexican billionaire Carlos Slim’s mobile operation for market share.
Digicel Honduras is open for business, according to its head office in Jamaica.
“To be clear, Digicel is not reducing its retail footprint in Honduras,” Digicel said in reply to a recent inquiry, “As a matter of fact, we are increasing it.”
Tags: Honduran Business & Economics
Digicel’s Honduran unit plans to launch a legal bid to recover monies it claims it is owed by national PTO Hondutel concerning the latter’s failure to adhere to the terms of their Interconnection Agreement.
Digicel says it is looking to sue for HNL10 million (USD538,000) in payments covering the term from February 2009, unless the debt is honored.
Last month Digicel said that if it failed to get an agreement concerning payment of the debt, it would be forced to suspend incoming international calls. However, December 16th the National Telecommunications Commission (Conatel) ordered it to permit the entry of international calls from Hondutel, and instead take the matter to arbitration.
Tags: Honduran Business & Economics
Communications in Honduras are better than one would expect based on the country’s other economic indicators. Mobile penetration is about average for Central America and quite high compared with GDP per capita.
Fixed-line telephony has been partly liberalized, with long-distance telephony open to competition, but local services are still a monopoly of state-owned Hondutel and its franchise partners. Laws governing full liberalization have been delayed amid allegations of corruption and political wrangling over the role of Hondutel.
The mobile sector, on the other hand, is highly competitive, with four operators offering services. The market leader is Millicom’s Tigo, followed by America Movil’s Claro. Digicel entered the market in November 2008.
