Dominican government promotes competition in telecommunications to reduce costs
President Luis Abinader reaffirmed his administration’s stance regarding the opening of local markets, highlighting the importance of fostering the entry of new competitors in the telecommunications sector. The fundamental purpose of this strategy is to improve the quality of services and achieve a significant reduction in the rates paid by users in the Dominican Republic.
During a meeting with the press, the president addressed the start of operations of a new Vietnamese-owned telephone company, stressing that current economic policy seeks to dismantle monopoly and oligopoly structures that have limited the development of the national market.
Our goal as a Government is to bring competition, not only in the telecommunications sector, but in any other sector. We have opened up different areas to new companies where there were oligopolies or monopolies.
Luis Abinader, President of the Dominican Republic
A market with high concentration
The head of state pointed out that the lack of competition has harmed both technological development and the budget of Dominican families. According to official figures, 95% of the telecommunications market is controlled by just two companies, which has caused service prices to be 22% higher compared to the Latin American regional average.
Abinader explained that, due to the lack of real competitive pressure, many operators have not felt the need to invest in infrastructure improvements or in a more attractive offer for the consumer. Although he acknowledged the role of established companies, he insisted that market balance is a priority for national growth.
Security and strategic alliances
Regarding the origin of the new investment, the leader clarified that Vietnam maintains a strategic ally relationship with the United States, which provides guarantees regarding the operational framework. Likewise, he emphasized that any entity entering the country must strictly comply with international information security regulations, including the “Clean Network Initiative”.
- Guarantee of international cybersecurity standards.
- Alignment with the security policies of strategic allies.
- Commitment to transparency in bidding and market entry processes.
To conclude, the president reiterated that the Government’s primary interest is the creation of an environment of healthy and transparent competition. The ultimate goal is for the citizen to be the main beneficiary through higher quality service at more competitive prices, thus promoting the modernization of the telecommunications sector throughout the Dominican territory.
