Andorra is a small nation in the Pyrenees that has a developed economy with per capita income above the European average and higher than the level of neighbouring countries, Spain and France. The country has developed a sophisticated infrastructure including a unique micro-fiber-optic network for the entire country. The telecommunications market in Andorra, including mobile, data and Internet, is operated exclusively by the Andorran national telecommunications company, Andorra Telecom, which operates under the brand SOM.
The Internet penetration rate had reached 100% of the Andorran population by December, 2019, according to official sources. The country’s telecoms infrastructure supports broadband Internet and LTE mobile lines for both consumer and enterprise customers.
Internet access is available only through the national telephone company, SOM (Andorra Telecom). Fibre speed reached 700 Mb and 97% 4G network customer’s coverage at the beginning of 2020. In 2016, Andorra became one of the first countries in the world to abandon copper technology and migrated all of its fixed telephony to fibre optic.
The main income sources for Andorran economy are tourism, retail sales, and banking, representing more than three-quarters of its GDP. Having a duty-free policy for some retail products and being a popular winter resort in the Pyrenees has led millions of shopping-oriented tourists and sport lovers to visit this small country annually. Andorra’s comparative advantage as a tax haven has been curtailed by recent financial scandals, and its bank secrecy laws have been relaxed under pressure from the EU and OECD. Most food has to be imported, making the economy vulnerable to changes in fuel and food prices. Manufacturing exports consist mainly of perfumes, cosmetic products, electrical machinery and equipment, clothing, tobacco products, and furniture. Andorra is a member of the EU Customs Union and uses the euro in internal monetary operations, being therefore subject, in actual practice if not by EU regulations, to the monetary policy of the European Central Bank.
Andorra Telecom, formerly known as the Telecommunications Service of Andorra, is the public operator that manages and operates, exclusively in Andorra, telecommunications services in general – landline, mobile telephone, transmission data, Internet and other ancillary or supplementary services for telecommunications even regarding to international communications.
Andorra Telecom is also responsible for managing the technical infrastructure and national broadcasting networks related to radio and Terrestrial Digital Television (TDT). Andorra Telecom is controlled and managed by a Board of Directors with full responsibility to the Government of Andorra.