Panama opens its communications to a third mobile operator

The announced exit of Digicel from the Panamanian market opens a pre-qualification process for companies interested in obtaining a new concession to operate and exploit the communications service, in addition to an eventual purchase and sale of some assets of Digicel Panama S.A.

The prequalification process will take place on January 12 and its purpose is to incorporate a third mobile telecommunications operator and guarantee competition, as provided by the Panamanian regulation, according to the National Authority for Public Services (Asep).

A press release from the regulatory entity urges interested companies, which meet the established requirements, to participate in this first phase of the process that will culminate on March 16, 2023, with the presentation of the prequalification conditions.

In April of last year, Digicel Panama S.A. requested its voluntary liquidation before the civil courts of justice, after the government of Laurentino Cortizo Cohen gave the go-ahead to the purchase of Claro Panamá S.A., a subsidiary of América Móvil, by Cable & Wireless Panamá.

At that time, Digicel Panama accounted for 13% of the market, Cable & Wireless Panama 36% and Claro 23%, while Tigo (Millicom International Cellular) 28%.

For Digicel, which currently continues to operate under the figure of a controller until its departure is finalized, the approval of the purchase put an end to free competition in the telecommunications market.

He pointed out that “the approval of the merger, without considering the appropriate remedies for the remaining operators, eliminates free competition and puts Digicel Panama S.A. at a disadvantage, compared to the rules that existed when it entered the market in 2008″.

Meanwhile, the Panamanian government argued at the time that “the distribution of the spectrum between two other operators gives the opportunity to have the best and most effective services, allowing to provide a better service and leading the region with the implementation of 5G technology.”

With information from Bloomberg