Panama's incumbent losing ground to new entrants.(PANAMA)(Brief Article)

Latin America Telecom, June, 2005

Cable & Wireless Panama is beginning to feel the pain from the new entrants, as it has lost important government customers recently lured by lower rates. New entrants have set their eyes on the US$26 million the government spends annually on local and long-distance and have introduced offers that threaten the incumbent, the main supplier to this sector. ClaroCom is offering a rate of US$0.06 per minute for long-distance, which is 60 percent below what Cable & Wireless offers.

The newcomer has already added to its wins the Public Defense, the Ministry of Commerce and Industry, the National Maritime Service, and the Ministry of Justice. Telecarrier, meanwhile, also offers discounts of up to 50 percent compared to Cable & Wireless for long-distance and 60 percent...

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