Cabinet clears amendment to allow Panama to take back Digicel licence

Cabinet clears amendment to allow Panama to take back Digicel licence

The government of Panama looks set to revoke the operating licence of the local unit of Digicel after receiving authorisation from the Cabinet Council last month.

TeleGeography reports that Cabinet Resolution No. 140, made on 13th December 2022, advocated updating Clause 72 of Digicel Panama’s licence to make ‘mutual agreement’ an acceptable condition for its termination. The cabinet claims that this will allow the government to begin a public tender to award a new mobile concession in a way that will “ensure fair and healthy competition in the mobile market in Panama”.

In April 2022, Digicel Panama confirmed plans to enter a voluntary liquidation process and exit Panama’s mobile market, arguing that the recently approved merger between the local units of Cable & Wireless and Claro created an “illegal economic concentration” that would prevent it from competing effectively.

Shortly after this, on 27th April Digicel’s concession was restored to the National Public Services Authority (Autoridad Nacional de los Servicios Publicos / ASEP).

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