Abstract
The Nicaraguan telecom market generated $502m in 2008, and it' s expected to
grow at a 6.3% CAGR over the next five years. The sectors that will drive the
expansion are fixed broadband and mobile services. While there' s opportunity
in the underpenetrated Nicaraguan market, adoption will be curbed by the
absence of a real competitive challenge to telecom incumbent Claro. We see
opportunities for this company in the market, since targeted offerings for the
low-income segment of the population could be profitable.
In the mobile segment, we have seen limited expansion in points of sale of
prepaid cards for both Claro and Movistar, as both operators have focused
their resources on penetrating urban areas. On the fixed side, Claro has
focused its efforts on penetrating high-income segments with fixed telephony,
broadband and pay-TV.
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