Wireless Federation

According to a media report, Ericsson has been contracted to deploy a GSM/EDGE mobile network for start-up operator Digicel Panama. Under this deal Ericsson will provide the Irish-owned cellco with a mobile softswitch, optical and microwave backhaul facilities and a convergent charging and billing solution.  Ericsson will also be held responsible for network deployment and systems integration. Also the Swedish firm is the supplier of choice for the Digicel group in 24 markets across the Caribbean and Central America. Currently, Panama has two mobile operators Movistar and Cable & Wireless. Digicel and America Movil won Panama’s third and fourth mobile licences in May, each paying around USD86 million. Both of them aiming a commercial launch by the end of 2008. Digicel is planning to invest USD334 million in its Panamanian subsidiary.
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After winning the country’s third GSM licence, Digicel set to invest USD334 million in its Panamanian subsidiary. It is reported that the funds are to be used for the construction of network infrastructure, and the International Finance Corporation (IFC), a private financing arm of the World Bank to be involved with the project. USD50 million is plan to be financed by IFC. Moreover IFC will assist Digicel in developing further new initiatives designed to increase access in rural and low income urban areas. Key challenges have been noted for the scheme, the high cost of rural network deployment is a key barrier to increasing rural penetration in many developing countries including Panama.

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Digicel and Claro have officially signed for the mobile concessions they won earlier this month. As reported on 8 May, the companies paid USD86 million each for the 20-year licences of 30MHz each in the 1900MHz band. The operators now have four months to build out their networks and reach interconnection agreements.

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Irish-owned wireless group Digicel and America Movil (Claro) have won 20 year concessions to offer wireless services using 30MHz in the 1900MHz frequency band. Digicel bid USD86 million for the licence, beating the USD73 million offered by Claro Panama. A third firm, Millicom International Cellular, dropped out of the running at the last minute, and as a result the Panamanian government asked Claro to match Digicel’s offer. The two firms will compete with Cable & Wireless Panama and Movistar.

The licence is Digicel’s fourth in Central America, where the company has operations in El Salvador, is planning a launch in Honduras this year and holds spectrum to eventually launch in Guatemala. ‘Panama is a very exciting win for us and solidifies our presence in the region. Just as in Honduras and El Salvador, there is huge potential for growth in this mobile market and Digicel looks forward to becoming a strong competitor,’ Digicel Group’s CEO Colm Delves said.

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The Panamanian government has issued the specifications for the tender to allow two new mobile phone firms to offer PCS services in Panama, reports La Prensa. There are so far six interested companies - Luxembourg-based Millicom, Jamaica-based Digicel, Mexico-based America Movil and Iusacell, and France’s Orange. Panama-based fixed-line service firm Cable Onda also wants to take part. The winning bidders will need to invest at least USD 55 million, and will need to set up their own infrastrcture. The 20-year licences will be extendable.

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Panama’s public services regulator Asep is quoted by BNamericas as saying that there have been 14 expressions of interest in the forthcoming auction of two wireless concessions. Possible bidders include Iusacell (of Mexico), America Movil, Orange, Millicom International Cellular, Digicel and US group Vitel, as well as Panamanian firms Vtel, Global Star, Clarocom, Cable Onda, Advanced Communication, Innovation Wireless, Torres Troncales and Pan American Wireless.

Asep is scheduled to publish the bidding rules on 21 October and will respond to consultations about the prequalification process during November and December. The regulator will accept prequalification applications from 28 January 2008 and expects to announce prequalified bidders on 27 February. The auction itself will start with reception of financial offers on 19 April, with the winners to be announced on May 21. The government expects to raise at least USD36 million for each new 20-year concession awarded, according to the Mexican press.

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Local press reports, cited by BNamericas, state that twelve companies have expressed an interest in bidding for one of two Panamanian mobile licences in an auction process that is due to start on 27 October and be awarded in May 2008. Public services regulator Asep revealed the interested parties to be: America Movil, Orange, Millicom International Cellular, Digicel, Vtel, Global Star, Clarocom, Cable Onda, Advanced Communication, Innovation Wireless, Torres Troncales and Pan American Wireless. Horacio Hoquee, Asep’s assistant director for fixed line telephony, was quoted as saying that the number of companies could increase given that the prequalification stage is open until January 28. Panama currently has two mobile operators, Telefonica-owned Movistar and Cable & Wireless.

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TelegeographyTeleglobe has announced that Cable & Wireless Panama (C&WP), the largest provider of fixed line, mobile and internet services in the country, has selected their Teleglobe Content Service for its comprehensive mobile content delivery platform. Under the agreement, CWP will provide its wireless subscribers with a dynamic range of data capabilities, including graphics, games, video, information services, ringtones and full track music via CWP-branded Web, WAP, xHTML and SMS shopfronts. The first phase of services is expected to launch later this month.

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Cnw writes…Wmode, the leading provider of mobile content
managed services under the ClearMode brand, announced today that they, through
their agreement with Teleglobe, part of VSNL International have been selected
by Cable & Wireless in Panama to manage its mobile Internet service offering.
Wmode will provide full Content Partner Management, Mobile and Web Storefront
Development, Billing and Reporting, Sim Tool Kit development and SMS messaging
management.
    “This decision provides C&W Panama with the technology to become leaders
in their rapidly growing market,” stated Tom Beaman, SVP of Global Marketing
and Sales for Wmode. “Wmode’s mobile content distribution services offer a
full range of technologies on a managed service basis that will enable C&W
Panama to deliver a broad array of mobile services to their valued customers.
This agreement aligns with Wmode’s global strategy as the world leader in
providing mobile content distribution services.”
    “Wmode has proven to be industry leaders in mobile content merchandising,
distribution and billing solutions. Their management of these services for us
will provide a growth opportunity for C&W Panama with the increase of mobile
content options for our customers,” stated Roberto Mendoza, Cable & Wireless
Panama’s Executive Director of Corporate Affairs.

    Cable & Wireless Panama

    Cable & Wireless Panama is the leading telecommunications company in
Panama and provides national and international fixed voice services on an
exclusive basis until 2003. The company also provides mobile, data, internet
access, IP solutions and other deregulated services in a competitive market.

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