Digicel wins bid for Mobile license in Panama

09.MAY.08

Digicel Central America Holdings Limited, through its wholly owned subsidiary, Digicel (Panama) S.A., is pleased to announce that it has won a competitive bid process for a license to operate a GSM mobile network in Panama.{{more}} The highly competitive auction took place on Wednesday, May 7th, with Digicel bidding US$86 million. Digicel’s win for a mobile license in Panama is the latest milestone for the company’s expansion efforts in Central America. Digicel currently operates in El Salvador and has plans to launch in Honduras later this year.

Significant investment in Panama is planned to build a world-class network and operation that is set to stimulate growth in the mobile market by increasing mobile penetration within the next five years from approximately 60% to 90%. Panama has a total population of more than three million people.

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.

Speaking from Panama City today, Colm Delves, Digicel Group CEO, said, “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 by delivering superior technology and being passionate about providing the best mobile phone service to customers.”

In April 2008, Digicel marked its one year anniversary of its launch in El Salvador, the Caribbean company’s first operation in Central America. In the twelve months Digicel increased its initial investment to US$190 million and now provides more then 95% population coverage to reach communities previously underserved by competitors.

Digicel Central America Holdings Limited is owned by Denis O’Brien, as is Digicel Group Limited and Digicel South Pacific Limited.