Telecommunications in Panama would remain with 2 companies for several years

The telecommunications market could spend several years with only two concessionaires, after the departure of Mr Digicel.

The General Manager of the Public Services Authority (Asep), Armando Fuentes, reported that the concession held by Digicel expires in 2028 and it will have to be decided whether to wait for that period to expire or to venture into a new attempt to bring in another company.

It was twice those that Digicel tried to sell after the intervention of the state, however, both failed.

“We have to analyze it with the new government; see if it is really so a new tender is announced or the law is changedFuentes said.

There were two companies with which Digicel was tried to be awarded, but when the other dropped out, liquidation proceedings have been initiatedwhich included the dismissal of 188 employees, this Wednesday.

was 78 workers were rehired for a 30-day transition process that includes the migration of 330,000 customers held by Digicel to two other telecommunications operators.

Why was it so difficult for another worker to enter the country?‘

Those clients who want to transfer their number in order to move to another operator will not have to pay for this procedure.

The exit of Digicel leaves two companies on the market. Claro bought Cable & Wireless, after tycoon Carlos Slim pulled his operations out of the country.

Digicel customers will have 30 days to choose a new operator to provide their service.

Digicel began operations in 2008 with an $86 million investment in a mobile telephony concession to offer national 2G and 3G coverage.

Fuentes admitted that the situation at the international level has been complex in recent years economic concentration between companies This is happening both in Latin America and in Europe.

Except, Panama is a small market which is an average of 6 million clients, as many have services from more than one operator.

So four operators to intervene, as they did at one point, “was too much,” Fuentes said.

In addition to this last point about the size of the market, the Asep administrator claimed that exit of two smaller companies it is attributed to this reality, and not to the economic concentration of the oldest concessionaires.

He added yes changes to the legal framework must be made encourage new companies to come into the country to provide the service.

Since Asep regulates both radio and television, he explained that a normative convergence in one law.

Sources suggested the analysis the possibility of a virtual operatorwhich could be a third party that does not have to invest so much, but that offers a service, after an agreement with other companies, so that there is a figure of competitiveness.

At the end of April 2022 The state intervened Digicel Panama.

Company controller Alex Arroyo said it was the company’s sin concentrated in the country’s capital and peripheral areaswhen in business this type of strategy like the one proposed does not work.

Digicel, based on this plan, did not invest enough at the national levelwhich was measured by the companies with which its sale was negotiated.