5 Jul 2011Bolivia Broadband Overview

Bolivia is one of the least developed Latin American nations, with the second lowest fixed line population penetration in South America, and the lowest mobile penetration. Its telecoms market was liberalized in November 2001 by the country’s telecom regulatory authority and as a result was opened to new Internet Service Providers (ISPs). This has led to greater investment in the sector and a reduction in the price of Internet access.

While ADSL, cable modem and WiMAX technologies are all available in Bolivia, the broadband market is still nascent. Despite growing at a steady rate following the arrival of greater political stability in 2002, Bolivia’s broadband market is small compared with neighbouring countries. Broadband growth has been constrained by a number of factors, such as legal restrictions forbidding ISPs from directly providing their own outgoing international connectivity or domestic leased lines. According to the ISPs, this results in higher costs, poor service and unfair competition from the incumbent telecom operator. Low incomes and old communications equipment also inhibit take-up. Furthermore, the government’s re-nationalization of Entel in 2008 has prevented any imminent private investment.