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Publication Date: July 2008
EVENT SPOTLIGHT
On May 7, telecom watchdog Autoridad de los Servicios Públicos (ASEP), awarded two 20-year mobile licenses (two blocks of 30MHz in the 1.850-1.965MHz spectrum range) in an effort to bring additional competition against current operators C&W Wireless and Telefónica (Movistar). More than 10 years since market liberalization, the regulator hopes the new licenses will generate more activity in the market after legal constraints barred the entrance of new competition.
The results of the auction saw Digicel and America Móvil win by bidding $172m between the two. Surprisingly, Millicom declined to bid even after having previously qualified, making Digicel and America Móvil the default victors if they met the government’s base requirements. For both new operators, the mobile market in Panama is attractive because of its relatively low level of mobile penetration, given its GDP per capita and high ARPS compared with the rest of Central America. Pyramid Research believes that the new competitors will achieve a combined 20% market share over the next five years through organic growth and niche strategies.
Author: Jose Roberto Magana
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