The introduction of a new telecoms operator creates new opportunities in the towers market. Xinwei requires significant investment in new infrastructure to begin to compete with the existing players, so lower network deployment cost options are highly appealing.
Newcomer Xinwei will face Latin America’s two largest telecoms operators Claro and Movistar when it launches, both of which have considerable financial backing and regional expertise to hold off any threats to their market shares. Xinwei has experience in the telecoms equipment market, but Nicaragua will be its first major network launch after winning a bid for a licence in 2012.