Panama has seen a steady increase in revenue from the telecom sector in recent years, including a 2% increase in 2019, year-on-year. Mobile services and broadband remain the key sectors, a trend likely to continue during the next few years in response to operator investments in network upgrades.

Panama’s economic prospects remain promising, with GDP growth during the next few years expected to be above 5%. This growth has encouraged continued investment in the sector, which in 2019 accounted for more than 26% of revenue. Following a period of acquisition activity, the market is dominated a few key players, including Liberty Global’s local unit Cable & Wireless Panam which provides effective competition to the other regional players Digicel and Claro.

Other significant changes to the market include Millicom International having acquired the main cable TV provider Cable Onda for $1 billion at the end of 2018, and its acquisition in February 2019 of Telefnica’s businesses in Panama, Costa Rica and Nicaragua for $1.7 billion.

The mobile sector has flourished in recent years, with the arrival of Digicel Panam in 2008 and of Amrica Mvil in 2009 ending the duopoly long enjoyed by Cable & Wireless Panam and Telefnica’s Movistar. Legislation adopted in early 2018 allowed for market consolidation and the reduction of the market to three players, aimed at making more efficient use of available spectrum. Although the number of players remains the same, Tigo Panama has expanded into the fixed and mobile segment by acquiring Movistar.

Internet penetration has grown in recent years and is expected to do so steadily in coming years, partly through consumers responding to government fixed-line projects but principally through the popularity of mobile broadband connectivity.

Key Developments

• Curie cable linking to Panama makes progress;
• Telefnica Group sells its Panamanian unit to Millicom International;
• Digicel Panama secures 700MHz spectrum licence, completes $100 million investment program, launches LTE services;
• South America Pacific Link cable soon to be ready for service, connecting Panama to the Caribbean and Asian regions;
• Deep Blue Cable suspends project to extend its pan-Caribbean regional submarine cable system to Panama;
• Movistar, Claro and C&WP extend reach of LTE services;
• C&WP trials G-fast technology with Huawei;
• Broadband for Central America project to close digital divide by end-2020;
• Report update includes the regulators market data to December 2019, operator data to Q4 2019, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in the report: Cable & Wireless Panama, Cable Onda, Claro, Optynex Telecom, Digicel, and Movistar.

The “Panama – Telecoms, Mobile and Broadband – Statistics and Analyses” report has been added to ResearchAndMarkets.com’s offering.