Millicom investing US$100mn in Tigo Honduras

International telco Millicom plans to invest US$100mn in its Tigo Honduras subsidiary in 2016 in a move that will strengthen its digital infrastructure, CEO Mauricio Ramos told local newspaper El Heraldo.

The investments include strengthening and growing fixed networks, which, according to Ramos, is where Honduras is still lacking.

The executive revealed that Tigo's voice coverage will serve 85-90% of the country's population by the end of the year, while 3G data will covers around two thirds of the public, and the 4G network will reach approximately a third of the population.

Ramos also said that Honduras contributes 10-15% of Millicom's global gross profits and is one of the main markets for its mobile payment platform Tigo Money.

According to the CEO, around 1mn Honduran users of Tigo Money made 30mn transactions in 2015, totaling approximately US$290mn, equivalent to 1.5% of the country's GDP.

Ramos was optimistic about the development of communications in the country. "The market includes young people who want to consume more and more data, a growing middle class that wants transparency and a degree of economic stability, which makes us feel that Honduras has a very bright future," he said.

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