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Panama to Auction Cellular Licenses

Panama to Auction Cellular Licenses

Reuters reports Panama will auction two new cellular phone licenses to encourage competition, improve service and lower prices. Minimum bid will be $36 million each.

The contracts will be awarded in March 2008, with the pre-qualification period already under way. A government spokesman declined to address whether the incumbent companies, Britain’s Cable & Wireless and Spain’s Telefonica, will be allowed to bid on the added licenses.

According to government figures, Panama has 2.4 million mobile phone users and just over 3 million inhabitants. Some industry observers question whether that market can support two more companies.