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Subject
Central America telecoms.
Significance
In a debt-reducing move over the last few months, Spanish telecoms firm Telefonica has sold its subsidiaries across Central America. It also plans to leave Mexico in the near future. Telefonica’s decision strengthens the position of America Movil in the region and creates opportunities for smaller competitors such as Millicom.
Impacts
Telefonica will concentrate its investments in large South American countries and in Europe.
Central American regulatory institutions will remain weak and struggle to promote lower prices and more competition.
Business integration in Central America is likely to expand, with lower roaming costs for clients travelling and working across the region.
Keywords:
Telecoms,
industry,
foreign investment,
investment,
private sector,
regional,
telecommunications,
debt,
growth,
Central America,
LA/C,
Costa Rica,
El Salvador,
Guatemala,
Honduras,
Nicaragua,
Panama,
Brazil,
Mexico,
Spain,
Sweden
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2019
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