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April 3, 2019updated 04 Apr 2019 1:05pm

Nicaragua telecoms and pay-TV has growth potential

By MarketLine

Despite being one of the smallest markets in the Americas, the Nicaraguan telecoms and pay-TV market holds great growth potential particularly in the mobile and fixed data segments.

Nicaragua telecoms

GlobalData forecasts that the total telecom and pay-TV revenue in the country will increase at a compound annual growth rate (CAGR) of 3.5%, in local currency terms, between 2018 and 2023, mainly driven by the growing demand for mobile and fixed data services, as well as the increasing adoption of traditional pay-TV services.

The mobile data segment, which accounted for 20.4% of the total telecoms revenue in 2018, will be the fastest growing segment, expanding at a CAGR of 14.1%, in local currency terms, over the 2018-2023 period.

Growth will be supported by the increasing adoption of mobile data services, particularly over smartphones and the expansion of 4G services with higher average revenue per user levels.

The fixed broadband and pay-TV segments will also see their revenue contribution increase during this period, from a combined 18.5% in 2018 to 22.1% in 2023, mainly driven by the growing adoption of fixed broadband connections in the residential segment and operator’s investment in FTTx infrastructure.

Total telecom and pay TV services revenue by category 2017-2023 ($ millions)

Source: GlobalData