Honduras: DSL and cable modem technologies are available but relatively expensive, while higher speed services are largely restricted to the major urban centers.

The country has been on the cusp of bankruptcy for several years, and though a group of banks had written off $3.5 billion of debt in 2007 accumulated debt since then has reached $5 billion. The economic plight has contributed to crises within the government, with no consensus on how to formulate a budget for 2013.

These practical difficulties have had real effects on the country’s telecommunications market. Fixed-line teledensity at only 7% is significantly lower than the Latin American and Caribbean average.

Poor fixed-line infrastructure has been exacerbated by low investment and difficulties in local terrain which have made investment in rural areas unattractive or uneconomical. As a consequence, the internet has been slow to develop in Honduras: DSL and cable modem technologies are available but relatively expensive, while higher speed services are largely restricted to the major urban centres.