Panama makes new attempt to auction Digicel's license

Panama's public services regulator Asep launched a second prequalification call for firms interested in buying the license belonging to Digicel, as well as certain company assets.

The decision was made after the only prequalified company in the first round, General International Telecom Panama (Gitpan), failed to present key documents, including financial performance and solvency information.

The date for interested firms to present documentation is May 24, Asep said in a statement.

The regulator said that Gitpan can participate again if it produces all the required information, and called on other companies to take part.

Last April, Digicel decided to request the termination of the concession on the grounds that market consolidation prevented it from competing. The move led to an intervention by Asep.

The tender includes concessions in the 1900MHz and 700MHz bands, as well as a network of more than 700 sites with population coverage of 80%.

Participants are required to have at least five years of sector experience and a minimum of 500,000 active users.

According to a 2018 law, the Panamanian market must have at least three companies licensed to offer mobile phone services. Cable & Wireless and Tigo are currently the two existing operators.

In 2021, General International Telecom El Salvador acquired the assets of Telefónica in that country for 125mn euros (US$141mn).