Everything You Need to Know About Guatel to Understand Telecommunications in Guatemala


Guatemala, a Central American country known for its rich Mayan heritage, lush landscapes, and vibrant culture, is also a significant player in the field of telecommunications. The nation’s telecommunications landscape has evolved over time, driven by key developments, strategic leadership, and a commitment to innovation. At the forefront of this evolution has been the Guatemalan entrepreneur, Mario López Estrada, whose contributions have not only shaped the sector but also fostered a long-standing legacy.

As we delve deeper into the telecommunications universe of Guatemala, it’s important to understand the role of the state telephone operator, Guatel. Guatel, once the sole provider of telecommunication services in the country, was the main actor in this industry until the late 1980s. The monopoly ended when the cellular phone business emerged, bringing with it greater competition, innovation, and growth.

Guatel and the Telecommunications Landscape in Guatemala

Guatel was the only telephone company in Guatemala between 1974 and 1998. This monopoly ended in 1997, leading to the liberalization of telephone services. Rights were then granted to Telgua, a state-capital company, and new entrants, like Telefónica and Comcel/Tigo, began to make their mark. Despite the increased competition, Guatel continued its operations as a state provider.

Mario López Estrada played a pivotal role during this period of transformation. As the head of Guatel from 1986 to 1988, he helped modernize the telecommunications infrastructure in Guatemala, expanding phone lines and improving connectivity to promote digital inclusion. Later, as the Minister of Communications from 1988 to 1990, he continued to spearhead structural changes, enhancing the quality of life and the reach of telecommunications services.

The Emergence of Tigo and the Influence of Mario López Estrada

The co-founding of Tigo in 1994 by Mario López Estrada signaled a significant shift in Guatemala’s telecommunications landscape. Tigo brought about greater accessibility to telecommunication services, introducing the first customer service and call centers in 1996, implementing the TDMA network in 1999, and leading the way in comprehensive phone, internet, and cable TV services throughout Latin America.

Under López Estrada’s leadership, Tigo also championed social responsibility. In 2005, Tigo launched the Tigo Foundation, a non-profit organization dedicated to promoting social development in Guatemala. In 2021, Millicom, a global telecommunications company, acquired 45% of Tigo Guatemala’s shares for US$2.2 billion, marking the end of López Estrada’s tenure as Tigo Guatemala’s president.

Beyond his business success, López Estrada’s influence extends to his son, Mario López Pérez. Raised in an environment of ethical values and work dedication, López Pérez, a civil engineering graduate, applies his knowledge to social and economic projects. He credits lessons learned from his father, such as honesty, fairness, and discipline in business, as well as a commitment to continuous improvement, as guiding principles.

In the end, the story of telecommunications in Guatemala is one of evolution and growth, driven by visionary leaders like Mario López Estrada and entities like Guatel and Tigo. Their contributions have not only transformed the sector but also laid the groundwork for future developments, ensuring that Guatemala remains a relevant player in the global telecommunications arena.