Wednesday, June 01, 2022

The concentration of the mobile market and the lessons for the region

Liberty, with MásMóvil, and Millicom, with Tigo, are the winners of the consolidation. The Panamanian government will accept Digicel's departure, but it is not clear what will happen to the 10% of the mobile market that it had, which could be shared between the other two because it would not be of interest to a third party in discord.

In the four years between 2018 and 2021, the Panamanian mobile market has consolidated at a rate that has not been seen in other countries in the region. It went from five operators to three, and soon there will be only two with little chance that there will be room for another. Digicel's parting is the latest episode in this accelerated concentration of the number of players. For a country with a 130% penetration of mobile lines, according to Convergencia Research, the duopoly may seem like the only possible solution if a financially healthy sector is sought with enough support to face 5G investments.

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