Infrastructure
The Telecommunications Hub of Latin America
Since the mid 1990’s, the high-tech telecommunications industry has almost unilaterally made Panama the Latin American staging point of choice. The synergy of the influx of advanced communications was so great that even the conservative UNESCO organization was moved to predict that Panama was destined to become the communications hub of Latin America by the end of the year 2002. This is no mere forecast: it has become a reality. Combinations of privatization and international dominance have catalyzed what was once, for most purposes, a nonexistent industry.
Deregulation of Telecom Industry
In 1997, Panama’s state-owned telephone monopoly, INTEL, was dissolved. A 49% stake of the company was sold to Cable & Wireless (C & W), Britain’s international telephone giant, for the sum of US$652 million, the highest concession price ever paid for a Latin telephone network at that time. As part of the deal, the company was granted a non-competition grace period until January 1, 2003 so, in order to fulfill their contract, and to establish their position when the market eventually reopened, C&W immediately initiated an ambitious program with the intention to upgrade and expand the existing telephone infrastructure.
By the end of 1999, at the expense of millions of dollars, a completely modernized national telephone communications network had emerged. Thousands of miles of antiquated telephone lines had been replaced with latest-technology equivalents, including fiber-optic lines in high-density areas, and thousands more had been extended to outlying areas where phone service was previously unavailable. Transmission towers had been replaced. A national grid of functional pay phones was installed. And, an extensive service network was created, with the goal of supporting and maintaining the revamped system.
Customers benefited in a myriad of ways. The users in Panama were introduced to convenient services like: emergency service access, call waiting, conference calling, videoconferencing – all the inclusive amenities expected form a 21-century service provider. And, perhaps the most important innovation of all was the fact that rates for both private and business subscribers began to gradually go down while reliability went up a trend that continues to this day.
Fiber Optics
Panama’s geographic importance to North, South and Central America has led to its establishment as a point of contact for numerous submarine, fiber-optic cable network projects, which are intended to facilitate better telecommunications opportunities throughout the Latin and Caribbean regions. Panama is a staging point for the MAYA-1 ring along with Florida, Mexico, Guatemala, Costa Rica, Colombia, Puerto Rico, Grand Cayman and Jamaica. Through the ARCOS-1 ring, Panama is connected with Florida, Mexico, Belize, Honduras, Guatemala, Nicaragua, Costa Rica, Colombia, Aruba, Puerto Rico, the Dominican Republic and the Bahamas. Bermuda’s Global Crossing, in conjunction with Alcatel, has also chosen Panama to be a land service point for another submarine cable system to encircle South America.
Transportation Hub of the Americas
Because of Panama’s excellent geographic position, infrastructure, political stability, thriving economy and favorable climate it is quickly becoming the transportation hub of the Americas.
Panama is centrally located between North and South America. It has access to both the Atlantic and Pacific Oceans, modern ports on either side, along with a state-of-the-art railway system and road infrastructure connecting the two oceans. All these features, coupled with the Panama Canal, the Colon Free Zone (the world’s second largest free trade zone and the largest in the Western Hemisphere) and Tocumen International Airport, the hub of the Americas, have helped make the Republic of Panama a booming trans-shipment and transportation hub.
