Just released, this edition of Paul Budde Communication’s focus report on Panama outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Panama-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

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 Panamá 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 Telefónica’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 Panamá in 2008 and of América Móvil in 2009 ending the duopoly long enjoyed by Cable & Wireless Panamá and Telefónica’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;
• Telefónica 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 regulator’s market data to December 2019, operator data to Q4 2019, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report

Cable and Wireless Panama, Cable Onda, Claro, Optynex Telecom, Digicel, Movistar