Mauricio Ramos, CEO of Millicom, the parent company of Tigo El Salvador, outlined the $ 500 million investment plan that the multinational will execute in the country over the next five years. It is estimated that this amount will be executed at a rate of $ 100 million per year.
"It is investment in capital and networks, they do not include operating expenses, the payment of salaries, they are really investments," said the CEO.
This plan includes the construction of a data center in the free zone of Olocuilta, department of La Paz, with an investment of $ 23 million, and the modernization of the fixed network and the expansion of the necessary mobile network for network technology 4G
"We are clear that the future of El Salvador is digital," Ramos said during a visit to the country to inaugurate the construction of the data center, a time he took to have a meeting with President Nayib Bukele, to whom he spoke about the The company's plan and interest in continuing to invest in El Salvador, he said.
The data center is level 3, the highest certification of its kind approved by the Uptime Institute, the company said. This infrastructure will serve from large corporations, to medium and small businesses and even the Government. Ramos stressed that this can also serve foreign companies that wish to invest in the country.
Earlier, Millicom also installed a service center in El Salvador from where the rest of the Tigo Group is served throughout the region, attention includes finance, technology and accounting.
"In the digital economy, it is necessary not only that information moves from one place to another, but that it has a safe place in which it is protected, that there is cyber security and that it is close to the place where it is being used. Small, medium or large company needs a data center, "Ramos said.
The data center will complement the services of the Tigo Business division in the country. This will join 10 others already operating in Latin America. Tigo reported that the data center will operate from 2021.
"The corporate business is accelerating, Salvadoran companies have identified that current business success cannot ignore the digital strategy," said Edgard Grande, CEO of Tigo El Salvador.
The location of the data center in Olocuilta is key because it meets the security standards required in this area.
"To be Tier 3 you have to have data redundancy, energy, anti-terrorism, natural disasters. When the search was done the free zone complies with all this," said Grande.
On El Salvador's incentive scheme, Ramos said that when investing an investor takes into account macroeconomic stability, looks at political stability, a growing middle class with a consumer spirit, the quality of workers and the digital development of the country , which implies connectivity and infrastructure.
Networks and spectrum
The CEO of Millicom believes that one of El Salvador's challenges of a more powerful leap towards development is to release more spectrum, which would favor the expansion of the 4G network to the entire territory.
The lag in spectrum expansion takes 20 years, he said. In the spectrum allocation, the average per operated in Latin America is 112 Mhz, in El Salvador it is 60 Mhz.
At this time, there are countries that have started testing to implement the 5G network, which allows you to download information at much faster speeds than the current ones.
Mobile speeds, both up and down, are half the average for Latin America. But this would be solved in a few months with the allocation of more spectrum, the company says. "The delay is not a desire to invest, ability to invest. We are committed, the truth is that to make it mobile you need spectrum," said the CEO of Millicom.
Ramos stressed that to access 5G it is first necessary to build the infrastructure for the 4G network.