Panama to get Public and Private 5G in 2024

Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. Panama is known as a transit country because of the Panama Canal. The Panama Canal, a famous feat of human engineering, cuts through its center, linking the Atlantic and Pacific oceans to create an essential shipping route.

According to GSMA Intelligence, Panama had 5.34 million cellular mobile connections at the beginning of 2024. However, it's important to recognize that many individuals globally use more than one mobile connection—such as having one for personal use and another for work—so it's common for the number of mobile connections to surpass the total population.

GSMA Intelligence reports that in January 2024, mobile connections in Panama represented 118.6 percent of the population. Between the start of 2023 and the start of 2024, the number of mobile connections in Panama decreased by 6,999, a decline of 0.1 percent. Data from GSMA Intelligence shows that there were 5.34 million cellular mobile connections in Panama at the start of 2024.

GSMA Intelligence’s numbers indicate that mobile connections in Panama were equivalent to 118.6 percent of the total population in January 2024. The number of mobile connections in Panama decreased by 6,999 (-0.1 percent) between the start of 2023 and the start of 2024.

Operator Digicel is featured in the most recent report by OpenSignal on Panama however Panama’s ICT regulator Asep will terminate operator Digicel's concession due to a failure to find a buyer for its assets and keep the contract valid.

Digicel has spectrum in the 1900MHz and 700MHz bands, as well as a network involving over 700 sites, covering 80% of the population. However Digicel exited Panama in 2022, claiming it was unable to compete in a market dominated by Tigo and C&W, after a Claro and C&W Panamá merger received the green light.

But law mandates that the country must have at least three mobile phone operators to guarantee competition. To attract at least one other player, Asep is planning an update of its telecoms law to simplify procedures, promote competition and create new business models to facilitate infrastructure and spectrum sharing.

Meanwhile second largest operator Cable & Wireless Panama (+Móvil) will be implementing a pilot test in a controlled environment with the fifth generation of mobile network technology (5G) in the national market.  +Móvil will be carrying out pilot tests using the 5G network in the 3.5 GHz band , with the aim of evaluating results that allow it to provide solutions to selected companies. 

The tests also include projects with strategic allies in the retail sector, implementing an extended 5G LAN network for video surveillance systems in distribution and storage centers. Another pilot project is being carried out in one of the main ports in Panama, where remote control platforms will be managed through the 5G Wi-Fi network.

Hoy más que nunca, reiteramos nuestro compromiso de inversión constante para que la mejor y más moderna red, esté siempre contigo. 💪🏽💫
¡CRECEMOS CONTIGO PANAMÁ! pic.twitter.com/lxJRao16kQ

— Tigo Panamá (@TigoPanama) July 24, 2024

Tigo as of January 2023 reportedly had 2.4 million mobile subscriptions in Panama, plus an additional 469,000 fiber customers.

Tigo Panama has pledged $100 million towards the modernizing and expansion of its network this year. This latest spend comes on top of the $475m that Tigo has invested in the country since Millicom International Cellular closed the takeover of Cable Onda in December 2018.

Tigo's latest investments will be used to increase its LTE capacity in the country to new areas, which currently sits at 95 percent.

According to the company, this part of the network is already prepped for the implementation of 5G. The company will also increase its fiber footprint, with Tigo saying that it will deploy fiber-optic networks to 90,000 homes in Puerto Armuelles, Colon City, Panama City, ​​Penonome, Azuero, and San Miguelito.

According to Bnamericas, the Panama canal authority (ACP) expects to finish deployment of a private 5G network around the end of this fiscal year, in September-October. The mobile infrastructure is currently in the installation and pilot testing phase, Augusto Sánchez, ACP interconnectivity manager, said during an event hosted by the Organization of American States' (OAS) Inter-American Telecommunication Commission (Citel) in Panama. ACP is working on a private network directly with an equipment provider, regulator Asep previously told BNamericas. The aim is to implement the mobile network throughout ACP's areas of operations. 

World's Largest Mobile Networks by Data Traffic - Q1 2024

Last year, India became the most populous country in the world. India's population stood at slightly over 1.428 billion, edging past China's population of 1.425 billion people. India and China's combined population is one third that of the whole world. As a result it won't come as a surprise that the operators with most data consumption in their networks are the ones from India and China.

At the end of Q1 2024, Reliance Jio was the operator with largest mobile data traffic flow through its network. China Mobile was just behind. 

Here's an interesting stat too: The monthly usage per AirFibre (FWA) subscription is 390 GB, 30% *higher* than for a JioFiber subscription. https://t.co/MGamLJE6xm

— Tefficient 🚥 (@tefficient) April 22, 2024

As Tefficient reported, Jio says that 5G's share of traffic is 28%, the rest being 4G as it doesn't have 2G/3G network. Another interesting stat was that the monthly usage per AirFibre (FWA) subscription was 390 GB, 30% higher than for a JioFiber subscription.

You can do a comparison with Q4 2022 numbers available here.

Djibouti to Start Experimenting with 5G Soon

Djibouti, located on the Horn of Africa, is a small but strategically significant country known for its diverse culture, historical sites, and unique landscapes. Presently, Djibouti remains one of the few countries where the national telecommunications company, Djibouti Telecom, holds a monopoly over all telecom services, including fixed lines, mobile, internet, and broadband. This lack of competition has stifled the market's potential. Despite Djibouti's strategic location as a hub for international submarine cables, with Djibouti Telecom being a partner in at least eight of them, telecom service prices remain high and unaffordable for many, hindering market growth.

The government has long planned to privatize Djibouti Telecom, but these plans have faced repeated delays. However, the successful experience of neighbouring Ethiopia, which recently ended Ethio Telecom's monopoly by licensing the Global Partnership for Ethiopia consortium (led by Safaricom), has provided encouragement. The Djibouti government aims to sell a minority stake in Djibouti Telecom, maintaining some decision-making control while attracting the financial support and management expertise of a foreign operator. This initiative is part of a broader strategy to modernize the country's economy. 

The population of Djibouti stood at 1.14 million in January 2024. Data from GSMA Intelligence shows that there were 553.8 thousand cellular mobile connections in Djibouti at the start of 2024.

However, note that many people around the world make use of more than one mobile connection – for example, they might have one connection for personal use, and another one for work – so it’s not unusual for mobile connection figures to significantly exceed figures for total population. GSMA Intelligence’s numbers indicate that mobile connections in Djibouti were equivalent to 48.4 percent of the total population in January 2024. The number of mobile connections in Djibouti increased by 28 thousand (+5.3 percent) between the start of 2023 and the start of 2024.

Djibouti Telecom, operational since 1999, has established itself as the leading international carrier in eastern Africa. Currently, it is developing a regional hub to offer a comprehensive portfolio of voice, data/IP, and capacity services over state-of-the-art network infrastructure. Its customer base includes telecommunications service providers, multinational organizations, international carriers, mobile and fixed telephony operators, internet service providers, and major government and private sector clients.

According to Mohamed Ahmed Mohamed, Director of International Business at the FSD-owned Djibouti Telecom, this prominent national operator, a cornerstone of the economy, reported an EBITDA of around $100 million this year. He explains that Djibouti may lack natural resources such as oil, gas, or precious metals, but it aims to cultivate a different kind of wealth. Leveraging its strategic location at the intersection of the Red Sea and the Indian Ocean along the Europe-Asia maritime route, Djibouti has capitalized on its geographical advantage. He explains: 

"Over the past fifteen years, we have invested $200 million in twelve submarine cables, transforming our territory into a key exchange point connecting Europe, the Middle East, Asia, and Africa, All submarine cables heading to Europe pass through the Red Sea, potentially through our country. By establishing operations here, carriers can seamlessly switch cables and reach various global destinations. Currently, Djibouti Telecom serves over 50 telecom operators with connections to more than 90 countries."

The latest investment, the Sea-Me-We-6 cable, spans 19,200 km from Singapore to Marseille. This cable aims to enhance network performance and support emerging technologies like cloud computing and artificial intelligence. Djibouti Telecom is already in discussions about additional projects, such as the 12,000 km Peace submarine cable linking Europe and Asia.

Djibouti’s twelve submarine cables are safeguarded by a monitored protective corridor. Once onshore, they connect to four autonomous energy stations, which are monitored around the clock.

Mohamed Ahmed Mohamed further states: 

"Investment in submarine cables has provided a foundation we can now capitalize on. This allows the country to foster a digital economy, encouraging the establishment of start-ups and data centres. However, to remain competitive, we must address the high cost of electricity, currently 23 cents per kWh."

The investments align with the Djibouti government's strategy to transform the country into a digital hub.

According to Mariam Hamadou Ali, the head of the Ministry of Digital Economy and Innovation, along with their  port activities, the information and communication technology sector presents an unprecedented opportunity to diversify our economy and stimulate innovation in new areas. 

This ministry is a first for Djibouti, a strategically significant nation in the Horn of Africa. And their  submarine cable infrastructure places them at the forefront of African countries in terms of international connectivity, solidifying our position as a strategic centre for global data and information exchange.

Currently, the digital sector accounts for 8% of Djibouti’s GDP, encompassing submarine cable infrastructure, telecommunications, fintech, and e-commerce. This share is expected to grow notes Minister Ali, who recently visited Marseille, France, to draw inspiration from the city, which has quickly become a hub for cable networks in Europe.

She elaborates: 

"We have launched initiatives to attract investment in data centres similarly. These data centres will meet local data storage and processing needs and serve regional and international companies, further establishing our position as a regional digital hub." The government's 'Djibouti Smart Nation' program includes 150 projects with a total investment of $850 million."

To encourage competition, stimulate innovation, and improve service quality, the Djibouti government has been considering opening up the capital of Djibouti Telecom. This move aims to modernize and expand its infrastructure, enhance service quality, and boost market competitiveness.

Opening Djibouti Telecom’s capital will attract national and international private investment, enabling modernization and service improvement explains Minister Mariam Hamadou Ali. This strategy is crucial for one of the country's economic pillars capable of operating internationally, akin to the port sector.

Simultaneously, the government supports introducing a new operator in Djibouti's telecommunications market. Minister Ali  emphasises bringing in new players will increase competition, spur innovation, and better meet consumer needs with a wider variety of services and more competitive rates. She highlights the significant progress in internet connectivity, which rose from 6% in 2012 to 61% by 2022.

The government intended selling up to 40% of the company to an international investor by the end of 2022. However this has not yet transpired. 

However Minister Ali remains optimistic about the future. 

"In the next ten to fifteen years, I envision Djibouti evolving into a dynamic and prosperous digital hub, characterized by a thriving digital economy, world-class connectivity, and an innovative, inclusive society."

In late 2013 Djibouti Telecom finally unveiled its 3G service throughout the country and as of 2017 has unveiled 4G+ service. As of August 2021, 2G network covered 95% of the population, 3G network covered 80% and the 4G network covered 75% of population.

The Djiboutian government aims to bring mobile phone and broadband internet coverage to 100% of the population by 2027. During Mobile World Congress 2024, The Minister of Communication in charge of Posts and Telecommunications met with the Director of Huawei's East Africa region and discussed the possibility of a partnership for the deployment of 4G or 5G relay antennas in rural areas in order to combat the digital divide across the territory.