Digicel's formal Panama exit advances

Panama is advancing in the termination process of Digicel's concession, which it will then tender again.

Digicel Panamá requested a voluntary liquidation of its concession in early April, after authorities approved the takeover of Cable & Wireless Panamá by Claro (América Móvil).

Digicel claimed the move makes competition impossible.

On Wednesday, public services regulator Asep appointed an authority to take charge of Digicel’s operations and guarantee the continuity of service until operations formally cease.

In a press release, Asep said the authority will issue a report recommending the termination. Based on the report, the government can then terminate the concession and prepare a tender to find a new operator. Preparations for the tender must start within 90 days after termination.

A new entrant is seen as problematic by competitors. Millicom CEO Mauricio Ramos told a recent investors' call that a telecommunications market with two big players is ideal, especially in smaller countries like Panama or Bolivia.

A law from 2018 mandates that Panama must have three mobile concessionaires. Although no company has shown interest yet, “the market will keep three operators competing on equal terms,” Asep said in a statement.