Panamanian telcos surpassed US$300mn in investments in 2023

Panama’s telecom operators invested a combined US$312mn in 2023, representing some 28% of their revenues in the period, according to preliminary figures by public services authority Asep.

If confirmed, it would be the first time in at least four years that the US$300mn threshold has been reached. In 2022 and 2021, capex of the country’s main carriers was US$289mn and US$268mn, respectively, according to Asep data.

Some carriers reinforced their cash positions for investment this year.

Last week, IDB Invest closed an accounts receivable financing line worth US$100mn with Cable & Wireless Panamá. The financing is expected to provide liquidity to deploy telecommunications and broadband infrastructure, IDB Invest said in a press release.

Asep also estimated that the sector reached US$1.10bn in combined revenues last year, some US$4.5mn more than in 2022.

Mobile telephony is said to have accounted for 50% of the total, down from 52% in 2022, followed by internet services (fixed and mobile internet), with a flat 26% share of the revenue pie.

Telecom transportation services, referring to wholesale telecom and data transmission operations, grew to 26% from 16%, according to the projections.

The regulator is yet to release consolidated 2023 sector figures.

CUSTOMER BASE

Panama ended 2023 with 6.98mn mobile lines in service, of which around 5.69mn corresponded to prepaid accesses and some 1.28mn to postpaid, Asep estimated. As a result, service penetration would have surpassed 156%.

At the end of 2022, the country’s total base stood at 6.69mn.

Some 4.73mn of the mobile lines last year corresponded to mobile broadband access and around 3.80mn of them were 4G lines, according to Asep.

In terms of coverage, the mobile service was estimated to be available to 93% of the population and cover 68% of the territory.

The number of mixed broadband lines was around 808,000, while fixed telephony lines reached 811,000.

SATELLITE AND DIGITAL TV

Panama also has more than 4,000 satellite internet users, according to separate information provided by Asep.

Last year, the country became one of the first in the region to grant a permit for Starlink's operation.

Asep executives and technicians conducted technical evaluations and service measurements last week and “verified the high quality of the signal,” the agency said in a release.

Meanwhile, in the broadcast TV segment, Panama began to shut down the analog signal on January 15 in four more provinces: Coclé, Veraguas, Herrera and Los Santos.

The analog switch-off is gradual and has been occurring province by province, in different phases. Last year, the country launched this process in the provinces of Panamá, Colón and Panamá Oeste.

“It is expected that in the Republic of Panama all the country's inhabitants will be able to take advantage of the benefits of connectivity, especially in the improvement of the digital infrastructure in 1,000 educational centers located in areas of difficult access,” Asep said in a release.