The Authority for Consumer Protection and Competition Defense (ACODECO) recommended to the National Authority for Public Services (ASEP) to evaluate the incorporation of the Mobile Virtual Network Operator (MVNO) figure in the Panamanian mobile phone market. The proposal was presented within the framework of Law 45 of October 31, 2007, and is part of the entity's competition advocacy actions aimed at promoting more competitive markets for the benefit of consumers. ACODECO stated that, in addition to ASEP's efforts to secure a third mobile phone concessionaire, the incorporation of mobile virtual operators should also be considered. This would allow for a greater number of brands and service offerings available in the market. Recall that in March 2024, Digicel Panama announced through its social networks that the National Authority for Public Services had proceeded to close the public tender process after there were no interested parties, meaning the company's customers must now switch to another operator, leaving the country without service. Digicel requested this liquidation, assuring it was a consequence of the Panamanian government's approval of the merger between Cable & Wireless Panama (CWP) and Claro, a decision they indicated affects free competition in the country's telecommunications market, leaving only two mobile operators. The Director of Free Competition at ACODECO, Diego Morales, explains the recommendation to ASEP to foster competition in mobile telephony through Mobile Virtual Network Operators (MVNOs) and the entry of a third concessionaire. According to ACODECO, the implementation of this figure could translate into greater competition, innovation in plans and services, and better prices for consumers, as well as a better use of the country's existing telecommunications infrastructure. A Mobile Virtual Network Operator is a company that offers mobile telephony services without its own telecommunications infrastructure, such as radio spectrum or antennas. Instead, it uses the networks of mobile operators that already hold concessions, through agreements that allow it to market services over those networks. This model has been implemented in various countries in the Americas, including Colombia, Peru, Chile, Brazil, Mexico, and the United States, as well as in European countries like Spain, where it has allowed for an expansion of service offerings and strengthening of competition in the sector.
ACODECO recommends introducing virtual mobile operators in Panama
Panama's consumer protection agency (ACODECO) has called for the introduction of Mobile Virtual Network Operators (MVNOs) to boost competition following Digicel's exit, which left the country with only two operators. This move is expected to lower prices and improve service quality for consumers.