If the bill that has already been approved in a first debate in Congress successful, the Panamanian mobile telephone market will have only three participants, instead of four, as at present.
The aim of the bill is "... to consolidate the market so that the necessary investments in infrastructure can be achieved and thus technologically renew coverage of these services in Panama."
The ASEP has sanctioned Claro Panama with a $50 thousand fine for the connection problems faced by its customers when calling from their cell phones to numbers with an 800 prefix.
The National Authority for Public Services (ASEP) imposed a fine of 50,000 balboas to Empresa Claro Panama, S.A. for breaching Law 31 of February 8, 1996, which dictates the rules for the regulation of telecommunications in the Republic of Panama.
The Public Utilities Authority has awarded to Digicel eighty-eight of the 230 additional frequencies requested by the company.
From a statement issued by the National Public Services Authority of Panama:
Resolution:
FIRST: ASSIGN to the concessionaire DIGICEL (PANAMA), SA, eighty-eight (88) additional frequencies, which are detailed below, to provide a Personal Communications Service (PCS), identified with the No.106, whose technical parameters are described in Appendix A entitled "Frequency Use Authorizations (AUF)" (see source).
After the appearance of number portability in Panama, Claro is the company that has attracted the most users, with 94,773, while only 12,396 have switched to another company.
Following this company is Movistar who "... has gained 26,517 users, Más Móvil with 26,540 and in last place Digicel, which has attracted only 17,258 users, according to a study by the polling company Ipsos" published Panamaamerica.com.pa.
The International Finance Corporation has shown interest in both funding the bi national project and expanding the Panamanian electricity transmission network.
This was announced by Roberto Albisetti, general manager of the International Finance Corporation (IFC) for Central America, who noted that energy demand in Panama and the region will double in the next few years and that interconnection projects are an important step in regional integration .
Cable & Wireless Panama (CWP), Telefonica Panama, Digicel Panama and Claro are the companies competing for the local market.
Panama has 3.3 million inhabitants and 7,281,074 registered mobile phone lines, according to the National Authority of Public Services (ASEP), which is more than two lines per person.
Despite the growth, experts estimate that the local market has not reached a point of maturity and there is lack of serious study providing a realistic view of the situation in telecommunications, and in particular in mobile telephony. Antonio Garcia, Business Development Manager of Claro Panama, is one of the supporters of this idea.
The company, which has operated in the country since 2008, is to invest in expanding its voice and data network.
The company currently has 25% of the telecommunications market in Panama and has set a short term goal to position iteself in second place among companies operating in the market.
The announcement was made by the new CEO of Digicel Panama, Mario Mendez, who also "...
Pyramid Research predicts that Digicel will reach 21.3% of the mobile market and Claro 11.7% in 2015.
The research firm expects the market to continue growing hand in hand with increased demand for data services, but it is close to saturation point, with a penetration of 137% in late 2010.
According to Pyramid, Claro and Digicel will take market share from dominant Cable & Wireless and Movistar, especially in prepaid phones, where there will be "fierce price competition."
The Panamanian company is negotiating with cellular telephony operators to offer joint 'deals and services'.
Cable Onda's general manager, Nicolás González Revilla, has indicated that the company is currently holding discussions with Digicel, Claro and Telefónica and predict that by the end of the year they will be able to offer joint products.
"Cable Onda, which provides cable TV, Internet and fixed line telecommunication services, is not currently able to offer mobile telephone services until the government reopens the period for concession applications," reports La Prensa.
The entrance into the market by Digicel and Claro in 2009 has caused cellular telephony prices to fall and increased competition in promotions and special offers.
Overall, telecommunications sales in Panama are expected to exceed $1 billion in 2010, with most growth in broadband Internet and mobile phone services.
Cable & Wireless Panama has a virtual monopoly on broadband services using ADSL technology with the only competition from WiMAX and cable modems.
The mobile telephony provider, who operates in Central America and the Caribbean, reached 10.8 million customers.
Colm Delves, CEO of the company, commented the company’s results for the March 2009- March 2010 period. He noted that the situation in Honduras has been difficult due to the economic and political crisis, but that things are coming back to normality.
There are now more cell phone subscribers than inhabitants in Panama.
Several factors contribute to the high demand of this communication mechanism, but “sociologist Milciades Pinzón argues that above all, mobile phone have become symbols of prestige, so many seek to own one or more units”, reported Latercera.com.
In Panama there are 4 cell phone companies: Movistar, Claro, Digicel and Cable&Wireless.
The country's 4 telecom operators manage 5.276.950 active mobile phone lines.
According to data provided by the Public Services Authority (ASEP), the market leader is Cable and Wireless with 50.4% of the market, followed by Movistar with 29.1%.
Newspaper Laestrella.com.pa reported that Digicel stands third with 18.3%, while Claro is fourth, with 2.2% of the market.
After nine months of operations, the telecommunications company achieved 95% national coverage.
Eduardo Ryan, president of Digicel Panama, reported they now have approximately 600.000 users.
"Ryan remarked that the company, based in Bermuda and with operations in 32 countries, has invested $400 million in Panama", reported newspaper Panamá América.
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