Yota wins tender to provide WiMAX to Nicaragua

Details: James Barton; Category: Wireless Networks; 23 December 2009; 8652 views

Nicaragua is set to benefit from a new WiMAX broadband network which will be deployed by Yota, a Russian internet access services provider...

Nicaragua is set to benefit from a new WiMAX broadband network which will be deployed by Yota, a Russian internet access services provider.

The broadband Internet access penetration rate in Nicaragua is below 1%; one of the worst figures in Latin America. The country has been plagued with poor service quality and high tariffs due to its monopolised market; however, the Nicaraguan government has recognised the impact that this has had on the country’s development, and ruled in favour of allowing greater competition in the telecoms market.

In July 2009, the public tender for 2.5-2.7 GHz spectrum was announced in order to provide the whole territory of Nicaragua with communications services based upon the IEEE 802.16e (Mobile WiMAX) standard. After winning the bid, Yota created the new company Yota de Nicaragua - co-owned by WiMAX Holding (75%) and a local Nicaraguan company (25%) – to build the network and manage the wireless services.

The network will initially be deployed in the capital city of Nicaragua, Managua. Yota plans to trial the network for three months, providing 500 volunteers with the necessary equipment to test coverage and services. Commercial exploitation of the network will commence in mid-2010.

Yota’s business development director Yegor Ivanov commented: “We see large potential in this project. According to recent studies, Nicaragua lacks at least 200,000 new Internet connections. The demand for communications services in this country is enormous. That is why the implementation of this project, which is basically the fast transition from dial-up and scarce fixed-line communications to 4G technology, will be able to achieve a tangible social effect.”