Panama proceeds to terminate Digicel's concession

Panama’s ICT regulator Asep will terminate operator Digicel's concession due to a failure to find a buyer for its assets and keep the contract valid.

In 2022, Asep began a public bidding process with the aim of granting a new concession to operate the communications service and sell certain assets of the company.

General International Telecom was the only bidder in the two calls made by Asep, but after starting the homologation of terms and conditions of the public tender, the company withdrew from the process, according to a press release from the regulator.

Another foreign operator showed interest in assets, networks and equipment, but also withdrew.

“As there are no new interested parties to continue the public bidding process and/or the purchase and sale of certain assets, networks and equipment of the Digicel company, Asep, in a responsible manner, must begin the process of terminating the concession contract,” the release said.

Digicel has spectrum in the 1900MHz and 700MHz bands, as well as a network involving over 700 sites, covering 80% of the population.

Digicel exited Panama in 2022, claiming it was unable to compete in a market dominated by Tigo and C&W, after a Claro and C&W Panamá merger received the green light.

But law mandates that the country must have at least three mobile phone operators to guarantee competition.

To attract at least one other player, Asep is planning an update of its telecoms law to simplify procedures, promote competition and create new business models to faciliate  infrastructure and spectrum sharing.

"We are inclined to have a third operator and we will do everything required and necessary to make it so. We do not believe in a market with only two operators," Asep’s telecoms head Hildeman Rangel told BNamericas recently.

A spectrum auction involving the 3.5GHz and 2.5GHz bands is in the works.