Guatemala, that represents developing country that still faces many social problems, is among the 10 poorest countries in Latin America. The country is bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize to the northeast, the Caribbean to the east, and Honduras and El Salvador to the southeast. So, we are to find out today what level of development Guatemala’s Internet and e-commerce infrastructure has reached.

Being one of the most impoverished countries in Latin America, Guatemala has socioeconomic indicators that are among the worst in the region. That evidently affected badly the situation on the national telecom market. Besides, a powerful oligarchy has managed to resist taxation attempts, so that the state survives on extremely low tax revenues. This in turn led to the situation when police, prosecutors, and law courts are under-funded, overworked, and often corrupt.

Meanwhile, telecom infrastructure in Guatemala is fairly modern in the main urban centers, while in rural areas it remains inadequate and antiquated. However, ICT sector is a lot better that prior to the 1996 liberalization of the telecom market. So, currently, country’s ICT market represents a fast growing sector thanks to one of Latin America’s most open regulatory frameworks, assuring prosperous conditions for foreign investors. Guatemalan law grants national treatment to all foreign investors in the telecom sector. The most developed telecom market in Guatemala is mobile telephony.

Despite fixed-line competition, Guatemala’s fixed-line teledensity is only 9%. Compared with the rest of Latin America, this is no worse than could be expected given the country’s extremely low GDP per capita.

Guatemala’s broadband market has been slow to develop because of limited infrastructure, widespread poverty, and inadequate education. The most popular technologies used for the Internet connection include ADSL, WiMAX, and cable modem.

Claro, the largest mobile phone an Internet network in the Americas, leads the ADSL Internet market. Claro is the international brand is, which means Clear and without problems. To Guatemala, Claro came in 2006 as a rebranding of the Telgua. Telgua used to be the biggest telecommunications provider in Guatemala, providing Internet, Telephony, and Cable TV services. In 2000 it joined America Movil and time after it renamed the brands ALO and PCS Digital to Claro on Guatemala.

On the country’s market Claro delivers the wide variety of services based on CDMA/1XRTT, GSM/GPRS/EDGE and UMTS/HSDPA wireless technologies. It is the only provider with license to operate in both 900 and 1900 MHz spectra. The CDMA network operates only in the 1900 MHz band and the GSM/GPRS/EDGE network operates in both 900 MHz and 1900 MHz.

Among other popular ISPs www.ostamyy.com names:

• c.net.gt - an Internet service provider for Guatemala, web hosting telecommunications services and much more.
• Quik Internet Guatemala - is member of a world-wide network of Suppliers of services of ISPs located in than 250 cities of 25 countries, offering more consultant's office specialized in technology of the information. This turns it the more extensive network of Internet and with greater amount of offices completely equipped of suppliers of Internet, guaranteeing the technological and professional endorsement to assure the best quality services of connectivity and development.
• Xela Limited - an ISP specializing in web site hosting, Internet and Intranet services to Guatemala's private and government sectors; we host the only site devoted to Canadian-Guatemalan trade and commerce.
• Conexion - is a small and efficient company located in the heart of beautiful Antigua – a popular and frequented town in Guatemala. The company markets itself as excellent provider of complete communications and office services: from Internet access and E-mail to Fax, phone calls, printing and editing.
• Captain Nemo's Communications - delivers Internet Access, international fax, and phone service. On the Rio Dulce, Capt. Nemo's provides the most convenient and comprehensive communications facility with phones, FAX, computerized FAX, E-mail and Internet access.
• Cable DX - is a local cable television company that also offers Internet access. Cable DX currently offers two packages: 128kbs for $50.00/month.
• iTelgua - represents a free isp in Guatemala, that strives to become the leader on national telecommunications market.
Besides, new operators are increasingly entering the market. Nevertheless, there is still work to be done. National ISPs need to expand their service to more remote parts of the country at affordable prices.

  Internet country code top-level domain for Guatemala is .gt. administered by Universidad del Valle de Guatemala. Two years registration agreement for residents costs $40, with $20 per every year prolongation as says www.gt. For no residents registration is more expensive - $60, with $40 for the prolongation.

It’s also possible to be registered under some second level domains, such as:

• .com.gt - Commercial entities
• .edu.gt - Educational institutions
• .net.gt - Networks; unrestricted in registration
• .gob.gt - Guatemalan governmental entities
• .org.gt - Organizations; unrestricted in registration
• .mil.gt - Guatemalan military entities
• .ind.gt – Individuals

Internet penetration level in this poor Central American country is extremely low. By the end of 2009 it reached slightly less than 15%, according to data from internetworldstats.com. These figures may be compared to the previous years when even less than 1% of Guatemalans could access Internet, 2000; in 2008 the amount of broadband subscribers made up over 10%. That is resulted by high percentage of the population living in rural areas, where telecommunication technologies have not been deployed enough or have not been rolled out at all. Well, penetration level is very low, even though the progress is obvious. Thereby, Internet usage growth has made up over 3000% for the decade.

There are basically four types of companies in Guatemala that use the Internet:

• companies that receive millions of dollars in investments (either foreign or local) and offer Internet specific products and services (ISPs like Convergence, Portals and Webhosts like Terra)
• established companies that are not Internet based, but use the Internet to enhance and supplement their services (Supermarkets like Paiz, Newspapers like Siglo XXI)
• small companies that are not Internet based, but use the Internet to improve their services (Dr. Tempt and Micro)
• small companies that are Internet based and offer web hosting, webdesign, and/or other Internet specific services (Deguate.com ), but do not have much capital to work with.

As for the e-commerce sector, last year alone e-commerce-related imports from the Internet were valued at $8 million, as reported business owners in the sector. Technology devices, electronic books, magazines, traditional books, clothing from shops that are not present in the country, as well as CDs and DVDs, among others, are the most p[popular products amid Guatemalans. Nevertheless, there are records for imports of large items, too, such as photocopiers and even vehicles.

 According to the recent statement of international sales manager at Cargo Expreso, 98% of the purchases come from the United States, while the rest come from Europe, but always via offices located in America. He has a firm belief, the future of e-commerce is assured in Guatemala as the new generations are more closely related to the Internet. Besides, one of the major attractions is that in most cases the prices compared to the local market are lower by between 20% and 30%.

Well, progress is obvious, however a lot of things are to be completed and developed. Existing businesses have to recognize that the Internet will definitely improve their efficiency and profitability. Despite a great number of obstacles still exists, the opportunities and potential of the country are tremendous. The Internet just may be the catalyst that catapults Guatemala into a developed, prosperous nation.