Overview
El Salvador’s telecommunication sector has operated under a privatized legal and institutional framework since 1997, encouraging competition in most areas and allowing foreign investment. América Móvil (Mexico), Grupo IBW (local), General International Telecom Limited GITL (UK), and Tigo El Salvador (Millicom International Cellular of Luxembourg) offer high-speed data and internet service through cable systems.
The regulatory authority responsible for spectrum development is the General Superintendency of Electricity and Telecommunications (SIGET). The Superintendency of Competition also controls the concentration of telecommunication operators as its antitrust agency.
In 2024, the number of mobile phone lines (post-paid and prepaid) reached 11.1 million, exceeding the total population of 6.5 million. According to SIGET, the mobile network covers 96% of the territory, and 98% of the population is covered by at least a 3G mobile communication network. Mobile penetration is remarkably high, considering El Salvador’s economic indicators, and exceeds the average for Latin America and the Caribbean. The growth of fixed-line telephone services remains low due to mobile-cellular competition; fixed lines numbered 885,101 in 2024. Internet subscriptions reported by SIGET were 992,293 in 2022, representing a 60% increase from 2020.
Broadcast media comprises multiple privately owned national terrestrial TV networks, supplemented by cable TV networks that carry international channels. The total number of multi-channel TV subscriptions is 682,962, including terrestrial multi-channel TV subscriptions, direct-to-home satellite antenna subscriptions, and hundreds of commercial radio broadcast stations. The country was among the last in the region to provide 4G LTE services, mainly due to the inadequacy of a suitable spectrum. In 2019, the telecommunications regulator (SIGET) awarded more spectrum through a public tender, after which private operators deployed LTE 4.5G.
Table: ICT Goods Market Size, million USD
| 2022 | 2023 | 2024 | 2025 (as of May 2025 | |
| Total local production | 0 | 0 | 0 | 0 |
| Total exports | 25.62 | 25.7 | 25.11 | 8.9 |
| Total imports | 831.1 | 690.1 | 736.4 | 289 |
| Imports from the US | 29.6 | 29.9 | 32.3 | 13.2 |
| Total market size | 805.48 | 664.4 | 711.29 | 280.10 |
| Exchange rates | NA | NA | NA | NA |
(Total market size= (total local production + imports) – exports)
Source: Central Reserve Bank of El Salvador
Units: USD millions
Statistics based on the HS Commodity Codes: 8471; 8517; 8521; 8523; 8525; 8528; 8542.
The United States is among the top three sources of ICT goods imports in El Salvador, with a 4.4% market share in 2024; China leads with 61.7%, followed by Mexico with 11.8% of the market share. There is no significant local production of information and communication technology, except for capacitors used in electronic equipment produced at a free trade zone. Import duties for information and communication technology and equipment are zero percent, subject to a 13% value-added tax. Companies should either register an office or work with a local agent to do business in El Salvador.
Leading Sub-sectors
- Consulting and Technical Services
- Software Development
- Cloud Services
- Data management and analytics.
- Ecommerce and digital transactions
- Cybersecurity
- Artificial intelligence
- Computer and Network hardware and software
- Telecommunications systems and products
Opportunities
The Innovation Secretariat’s 2020-2030 Digital Agenda aims to implement a digital transformation through four pillars: (1) Digital Identity; (2) Innovation, Education, and Competitiveness; (3) Modernization of the Government; and (4) Digital Governance. The government has prioritized transformative technology projects to advance this agenda, including the rollout of a national digital identity system that enables secure online access to public services with two-factor authentication. The digitalization of medical records is underway, with many Salvadorans now having their health data managed electronically, as well as the piloting of telemedicine services.
The adoption of electronic signatures and electronic invoicing is fully operational, supporting regulatory modernization and streamlining both public and private sector transactions. El Salvador continues to invest in digital infrastructure through a national connectivity plan, which includes the development of subsea cable, expansion of fiber optic networks, and the deployment of 5G technology to enhance nationwide connectivity and digital inclusion. On July 14, the Government of El Salvador allocated USD 9 million from a loan provided by the Inter-American Development Bank (IDB) to construct a government-operated Tier III data center. This data center is expected to be completed by 2029 and will store data from 57 public entities, utilizing cloud-based services to enhance the delivery of public services.
El Salvador has implemented a series of reforms aimed at fostering innovation. The government has eliminated the base price and annual fees for up to ten years on concessions of radioelectric frequencies dedicated to satellite internet services. This measure will accelerate the expansion of high-speed connectivity and digital inclusion nationwide. Investments in key technology sectors — including software development, artificial intelligence, cloud computing, cybersecurity, big data analytics, blockchain, cybersecurity solutions, and technology manufacturing—benefit from a fifteen-year exemption from a wide range of taxes. These exemptions cover income tax, withholding income tax, capital gains tax, municipal taxes, taxes on net company assets, customs and import duties, and transportation taxes. The enactment of the Cybersecurity and Information Security Law and the Data Privacy Bill creates an environment conducive to secure business operations and technological innovation.
The telecommunication and electricity regulator (SIGET) has allocated the entire 6GHz band for unlicensed technologies. The higher speeds and improved connectivity afforded by the band will unlock the full social and economic potential of Wi-Fi technology and facilitate the implementation of Wi-Fi 6E and Wi-Fi 7 products nationwide. El Salvador has ambitious plans to modernize customs, ports, airports, water, and sewage systems, and to improve and expand mass mobility, lighting, road surveillance, and implement electronic voting. El
Salvador’s private and public sectors prefer U.S. information technology products, which create opportunities for water metering, innovative traffic solutions, intelligent lighting systems, custom technology solutions, and city monitoring systems. The primary buyer is the public sector, which channels purchases through an online portal for competitive bidding processes (refer to the “Selling to the Government” chapter for more information). Projects may also be listed on the websites of the various multilateral development banks. A good local partner should be able to stay informed about where government opportunities will be listed.
Resources
- Telecommunication Regulator SIGET
- Trading economics World Bank Indicators
- Secretaria de Innovacion
Interested parties may contact Senior Commercial Specialist Carmen Saprissa at carmen.saprissa@trade.gov