Alexandra Borgeaud
Research expert covering cybersecurity and tech in Latin America
Get in touch with us nowIn an increasingly mobile world, fixed line persists
Central America is going through a period of digital transformation in which mobile devices have become essential to many. Mobile phones have enabled millions of people to stay connected in regions where fixed broadband networks are limited or completely unavailable. Mobile services, though representing a significant share of the market in the region, have stagnated or even decreased in recent years in many Central American countries. On the other hand, fixed broadband services have continued to grow as people transition to working from home. The number of fixed broadband subscriptions in Central America is forecast to surpass five million connections by 2028. In comparison, mobile cellular subscriptions have plateaued at around 113 million and are expected to remain at a similar or lower level over the next few years.Key challenges remain in the region
Although the telecommunications sector in Central America has had a promising development, the region continues to deal with several difficulties. Coverage and reachability are some of the biggest challenges in Central America, as constant technological development forces the market to adapt in order to satisfy the growing demand for communication services. One such example can be observed in rural communities, where areas suffer from limited broadband coverage due to a lack of infrastructure. Key investments and reforms will be necessary to ensure that the population in the region can reap the benefits of the digital transformation.
