Nearshore Americas

Nicaragua to Grow Faster Than Rest of Latin America, Study Says

Source: PR Newswire

CAMBRIDGE, Mass. — With a total revenue forecast around $448 million for 2011, Nicaragua ranks last in Latin America. However, the country is expected to grow at a CAGR of 5.8 percent over the next five years, ahead of the 4.9 percent average expected for Latin America, according to a new report from Pyramid Research (

Nicaragua: Growing Faster than Latin American Average through 2015 offers a precise profile of the country’s telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services and monitors the introduction and spread of new technologies.

“Not only will Nicaragua grow at a faster rate than Latin America’s average, the growth rate in Nicaragua will be the fastest of all countries in Central America due to its still-early stage of penetration in mobile services and Pyramid’s expectation for growth even in the fixed sector, while other countries in the region are seeing fixed-to-mobile migration,” notes Juliana Gomez, Research Analyst at Pyramid.

Due to a lack of fixed infrastructure beyond urban areas, fixed voice adoption and broadband penetration have been a challenge. “A low GDP per capita (approximately $950) is the main barrier for broadband penetration; computers and services are beyond reach of the majority of the population,” indicates Gomez. “Limited competition in the market keeps prices up, and operators tend to concentrate high-end users without offering packages to penetrate the base of the pyramid,” she adds.

“The entry of Yota to the market is the first sign of increased competition in the fixed market,” she indicates. Going forward, Pyramid expects broadband penetration to grow at a CAGR of 21.4 percent through 2015. “Yota’s arrival to the market, with its commitment to bring access beyond urban areas, forces operators to expand access to rural areas, further increasing the opportunity for vendors.” Nicaragua’s telecommunication market is concentrated in urban areas, where parts of the population can afford these services.

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Due to the new competition, Claro is offering quad-play bundles under the “Casa Claro” package to protect its market. “More competition in the fixed market, multiplay packages and prepaid services will decrease telecom costs for households, further increasing penetration,” Gomez notes.

Nicaragua: Growing Faster than Latin American Average through 2015 is part of Pyramid Research’s Latin America Country Intelligence Report Series and is priced at $990.

Kirk Laughlin

Kirk Laughlin is an award-winning editor and subject expert in information technology and offshore BPO/ contact center strategies.

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