Spotlight: The status of Guatemala’s telecom sector

Guatemala’s mobile industry is dominated by Millicom’s and América Móvil's local units, which have been competing more fiercely since Telefónica sold its business in 2019. 

According to regulator SIT's latest report, prepaid and postpaid mobile lines lost about 500,000 users during the first half of 2020 when the coronavirus pandemic peaked. But almost 300,000 users also migrated to fixed lines.

Of the 22.5mn total lines in operation, 90% were mobile. 

The lack of telecom infrastructure has pushed residents to rely more on mobile broadband services, especially in rural areas, according to an analysis published by Australian consultancy BuddeComm. 

While the SIT report offers a broad perspective of the telephony market, figures for services such as internet and TV are not available. Instead, the regulator redirects questions regarding those subsectors to international associations such as the International Telecommunication Union (ITU).

BNamericas takes a look at the local industry’s status. 

MOBILE

The strongest player is Luxembourg-based Millicom’s Tigo, which operates under the Comunicaciones Celulares brand in the country. The company held 51.7% of the mobile market in the first half of 2020, according to SIT’s report. 

Mexican telecom giant América Móvil, which operates Claro Guatemala and Telecomunicaciones de Guatemala (Telgua) comes in second. The former holds 15.6% and the latter 32.6% of the market, adding up to 48.2% for the parent company.

Just before the end of the first half of 2019, Spanish telco Telefónica’s Movistar had less than 20% of the market. But the company sold its business to América Móvil for US$333mn that same year. The acquisition, which went to Claro Guatemala, gave América Móvil the sufficient user base to compete neck-and-neck with Millicom.

América Móvil also bought Telefónica’s business in El Salvador for US$315mn. 

Overall, prepaid lines account for 91.4% of all mobile lines, with Tigo holding 52.6% of these, leading the sub-segment.

In total, 20.3mn mobile lines – 18.6mn prepaid, 1.7mn postpaid – were in operation in 1H20, about 524,000 less than a year ago. 

Prepaid numbers were the lowest in four months, while postpaid has been rising since the second half of 2018. 

FIXED LINES

Fixed lines rose by almost 280,000, after dropping by almost 500,000 in 2H19.

Telecomunicaciones de Guatemala operates 81.3% of all fixed lines.

The América Móvil subsidiary is followed by Comunicaciones Celulares with 12.5%, Claro Guatemala with 3.8% and the other five operators. 

Aside from fixed phone services, the cable operators also offer pay-TV and fixed internet services.