Digicel Plans $334 Million Investment in Panama
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(cellular-news.com) Pan-Caribeean mobile operator, Digicel Group is planning to invest at least US$334 million in its new network in Panama - reports the Jamaica Observer newspaper. Citing a report by the International Finance Corporation's (IFC), the paper said that the mobile operator is daunted by the high cost of building out the required rural network in Panama.
The Digicel Group owns 75% of Digicel Panama, with the remaining stake being held by the Bettsak Family, a local business group.
The IFC tends to offer funding assistance to infrastructure projects in developing nations - and is being tapped for a US$50 million loan. Digicel also expects to contribute to the local Panamanian economy, employing approximately 300 people directly in its operations and leading to the indirect employment of 1000 people.
Digicel Central America won the competitive bid process for the GSM license in Panama in May, with Digicel bidding US$86 million.
There are currently two mobile operators in Panama, Cable and Wireless plus Telefonica. According to figures from the Mobile World database, the country ended Q1 '08 with an estimated 2.7 million subscribers - representing a population penetration level of nearly 83%.
