Honduras News Archives: digicel

Tigo Market Leader in Honduras

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.

The Internet has been slow to develop in Honduras. ADSL is still primarily used by corporate customers. Nevertheless, the demand for broadband is increasing.

Key Highlights
• VoIP telephony services are more readily available than normal phone service and significantly cheaper. For more information, see Honduras – Telecoms, Mobile and Broadband, chapter 7.3.2.
• Three companies have received WiMAX licences. There are good investment opportunities for wireless DSL and WiMAX, since the fixed-line and cable networks have insufficient capacity. For more information, see Honduras – Telecoms, Mobile and Broadband, chapter 9.1.
• Millicom International, the leading mobile provider in Honduras through Tigo, has acquired cable TV and triple player Amnet. For more information, see Honduras – Telecoms, Mobile and Broadband, chapter 10.2.1.
• Honduras is the first and only country in Central America to have chosen a Digital Terrestrial TV standard: the government has opted for the US ATSC. For more information, see Honduras – Telecoms, Mobile and Broadband, chapter 10.3.
• Both Claro and Tigo have launched 3G mobile services based on WCDMA technology. For more information, see Honduras – Telecoms, Mobile and Broadband, chapter 11.2.1.

Digicel Goes Wireless

Jamaica-based Caribbean mobile network operator Digicel, which currently provides mobile services in 23 countries and territories in the region and in Central America, has won a licence to offer WiMAX services in eight departments in Honduras.

Digicel secured the concession with a bid of HNL36 million (USD1.86 million), beating off rival offers from Celtel, Sercom, Lumelsa, Autoconsa and Axioma Empresarial.

Digicel already holds wireless broadband WiMAX licenses in Jamaica and Gran Cayman. In December last year it won a GSM licence in Honduras with a bid of USD80 million and hopes to launch commercial operations there before Christmas.

Ericsson Supplies Digicel Honduras

Ericsson has been awarded a GSM/EDGE contract by Digicel Group in Honduras, making Ericsson the preferred supplier for Digicel’s operations in the Caribbean, El Salvador and now in Honduras.

Under the agreement Ericsson will be the sole supplier of a GSM/EDGE network including core network, radio access and microwave transmission. It will provide subscribers with access to a reliable and robust network as well as services such as GPRS/EDGE mobile internet access, per-second billing and international roaming. The deal also includes Ericsson’s Mobile Softswitch Solution, which is capable of carrying large volumes of voice traffic in a state-of-the-art network architecture.

Ericsson will also provide services including network deployment and integration, design, optimization and systems integration.

Mario Assaad, CTO Digicel Group, says: “We are pleased to bring our partnership with Ericsson to Honduras. It enables us to build industry-leading infrastructure that will help drive telecommunications innovation and deliver dependable network coverage for our customers. There is strong potential for growth in this mobile market, and Digicel is committed to delivering superior technology and providing the best mobile phone service throughout the country. As a country rich in culture with vibrant communities, Honduras offers a tremendous opportunity for us to help connect families and friends through a wide range of GSM services and value offerings.”

Erik Glimtoft, Country Manager, Ericsson Honduras, says: “As the worldwide leader in GSM/EDGE, Ericsson is proud to be selected again by Digicel as its sole supplier and to have the opportunity to support them with our leading technology in Honduras as well. This contract reinforces our long-term partnership with Digicel Group, as well as our leadership in telecommunications in Central America and the Caribbean.”

Ericsson is the world’s leading EDGE supplier, providing more than 200 of the world’s 310 commercial EDGE networks.

Ericsson is the world’s leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company’s portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of ‘communication for all’ through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm and NASDAQ stock exchanges.

About Digicel

Digicel was awarded a license in Honduras in December 2007, making it Digicel’s second market in Central America following its launch in El Salvador in April 2007. The Caribbean Company operates in 23 markets across the Caribbean. In May 2008 Digicel was awarded an additional license in Panama and is committed to further expansion in the Central America region.