Digicel Group is looking to pump US$334 million into its Panama-based operations - Digicel Central America - after the company was awarded that country's third nationwide GSM licence in May.

O'Brien. Group owns 75 per cent of Digicel Panama

According to the International Finance Corporation's (IFC's) outline of the project, which it is looking to help finance, the "project consists of the construction and operation of a greenfield mobile cellular telephone network in Panama".

Through its Panama operations, to be headquartered in Panama City, Digicel Group is "seeking to replicate its past success in the Caribbean and the Pacific throughout the Central America region".

"Digicel's strategy is to tap into pent-up demand for reliable telecommunications services and gain market share by providing a high-quality network, coupled with affordable prices, attractive promotions and superior customer service," said the project outline.

A key challenge for Digicel, according to the IFC, a private financing arm of the World Bank, is the "high cost of rural network deployment is a key barrier to increasing rural penetration in many developing countries including Panama".
The IFC says it plans to assist Digicel in developing further new initiatives around increasing access in rural and low income urban areas.

Denis O'Brien's Digicel Group owns 75 per cent of Digicel Panama, with the remaining stake being held by the Bettsak Family, a successful local business group.

Digicel Panama was awarded the third nationwide GSM cellular telephony licence in Panama in May 2008 through an open tender process for which it agreed to pay US$86 million. The total project cost is estimated at US$334 million equivalent. The proposed IFC investment is up to US$50 million 'A' loan for IFC's own account.

The project is expected to create high-quality employment opportunities in Panama both at the company and distribution levels. Digicel plans to hire 350 people directly in its operations and estimates the indirect employment of additional 1,000 people.

Since commencing operations in April 2001, the Digicel Group has become the fastest growing GSM operator in the Caribbean, with over 6.5 million subscribers and operations in 23 markets.

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