Nicaragua is about to roll out its high-speed optical fibre internet connections to its remote and underdeveloped Caribbean coast.

The 115-kilometre fibre network will benefit nearly 200,000 people in the coastal region, giving faster internet access to healthcare centres as well as schools. With the World Bank agreeing to fund this major broadband project, it will pave the way for local authorities to launch mobile digital classrooms for children in rural communities.

Power transmission firm Enatrel was awarded a multi-million-dollar contract to roll out the network with the government contributing around US$1.4 million. The fibre network will be connected to the submarine cables crisscrossing the Caribbean region.

The World Bank points out, “Nicaragua’s Caribbean coast is an area with one of the lowest Internet penetration rates and one of the highest poverty rates in Latin America and the Caribbean (LAC).”

Broadband services are extremely expensive in these areas of Nicaragua, largely due to lack of competition. 

The dominant telecoms player in the market is Claro, a subsidiary of Mexican telecom giant America Movil, which has almost monopolised the telecom sector in Nicaragua. Nearly 90 per cent of the country’s fixed-line telecom is controlled by Claro with Tigo, a subsidiary of Millicom, controlling the rest.

Tigo replaced Movistar in 2019 when Millicom acquired Telefonica’s operations in the Central American country. Both carriers are busy today building wireless networks in urban areas, as the demand for mobile services is far larger than for fixed-line.