El Salvador promoting satellite internet for rural areas

El Salvador's congress this week approved a new law to promote the deployment of satellite broadband internet in rural areas.

The new law, passed with 65 votes in favor, stipulates that use of the radioelectric spectrum to provide satellite communications services will be exempt from paying the basic concession price, as well as payment of the annual fee for administration, management and surveillance for those companies.

The latest telecoms market data published by regulator Siget indicates that there are currently no internet connections in El Salvador provided using satellite services.

At the end of the first quarter of 2022, El Salvador had 627,253 fixed broadband subscriptions, of which more than half used copper wire technology (DSL). Meanwhile, there were 221,387 cable modem lines, 10,884 via fiber-to-the-home (FTTH) and 203 classified as "other wired technologies". 

The regulator said there was a total of 706,814 mobile broadband lines as of end-March this year.

The expectation is that the new regulations will encourage the deployment of satellite broadband by "small and medium-sized companies" seeking to invest in rural areas.

In order to access the benefits of the new law, companies must provide the service to end-users and not for the private access of the operator or as a business service.