Internal strife and government tension has hampered Central America in its telecommunications development, but that is not to say that telecommunications has not been on the rise in recent years.
Poverty is more widespread in Central America, fixed land line usage for internet and data transfer is lower but mobile telecommunications is growing. Companies from Mexico and North America have been venturing into countries like Honduras, El Salvador and Panama. Mexican companies have been making deals with Central American governments and Jamaican companies to provide broadband internet service. The introduction of 3G service has created greater competition and this has also related to greater advancements in telecommunications research and investments.
With the encroachment of foreign companies and investments, countries like Costa Rica, Nicaragua and Belize are now seeing benefits. Costa Rica is now leading other Central American countries in competition. The introduction of 3G service has been a key factor in increasing revenues for various companies. Job creation is increasing, as is education in IT and telecommunications, so that jobs can be filled locally.
Fixed landlines are still not as common in Central America as it is in other areas, but mobile telecommunications is on the raise. Investment into mobile and satellite services has led to new telecommunications technology being tested and developed. Wireless data and mobile device sales has increased over the last few years as more competition is created.
Tourism is a great source of revenue for the Central American countries. With most tourists coming from more advanced countries, wireless service has been a boon for increasing revenues. Tourists can now keep in contact with friends and relatives through their mobile device with ease, providing they have unlocked their mobile to be used in that country. Business transactions are being done in countries like Belize and Honduras. The use of Paypal is also increasing as many European customers prefer using Paypal and many North American customers prefer to use on-line bank transfers. This increase in wireless and broadband service has benefited everyone, local and tourist.