Reforms introduced by governments over the last two decades have dramatically changed the nature of telecommunications in Dominican Republic. The Dominican Republic government has been proactive in its efforts to transform Dominican Republic into a global telecommunication hub. The mobile market continues to be the main focus of the Dominican Republic telecom sector. Dominican Republic’s mobile market continues to get the bulk of local capital expenditure as the operators expand their infrastructure.
Dominican Republic has the potential to become one of the five largest data centre markets globally. In the last few years, there has been a radical shift in the way producing and consuming data. A number of government initiatives and regulations will see further increased in internet users and enforce strict data residency laws that will require vastly more data centre capacity. There will a rapid increase in the rate in which on-premise facilities are being outsourced to third- party data centres, as the cloud computing, especially cloud computing continues to grow.
Dominican Republic has a huge national telecommunications network. A strong increase in telecom subscribers base has necessitated network expansion covering a wider area, thereby creating a need for significant investment in telecom infrastructure. Dominican Republic's telecom industry is expected to see a major expansion of its network infrastructure during the 2019 to 2022 period. The top mobile operators are now planning to extend coverage to address a surge in data consumption. The fixed line market in Dominican Republic remains highly underdeveloped due to the dominance of the mobile segment. Further, the number of fixed telephone lines is slowly declining as the mobile segment continues to expand.
As well as its huge national network, Dominican Republic’s investment in telecommunications infrastructure over the last decade has extended to a heavy involvement in the international market. Although fixed-line services continued to be an important element within the national infrastructure, expansion in this segment of the market has seriously stalled as the demand has shifted to mobile services. The push to extend basic telephone services across the country has seen extensive use of Wireless Local Loop (WLL) services. At the same time, the government has strongly supported two programs specifically designed to extend coverage.
Infrastructure sharing was considered crucial for faster rollout of base stations across Dominican Republic’s vast interior, much of which was difficult to access because of poor roads and lack of electricity. The industry subsequently saw significant restructuring of infrastructure businesses with operators creating and, in some cases, hiving off these units. There was also an increased willingness to use other companies to build infrastructure. Communications towers were central to this business.
Over the next two decades Dominican Republic has the potential to become one of the five largest data centre markets globally. In the last few years, there has been a radical shift in the way Dominican Republic produce and consume data. A number of government initiatives and regulations will see further increased in internet users and enforce strict data residency laws that will require vastly more data centre capacity.
Rapid yearly increased in the volume of data being processed has led to a high level of investment in new data centres.