Market Intelligence
Information and Communication Technology Panama

Panama: Updates in 5G

As a key information and communication technology hub for Central America, Panama has been aggressively pursuing the rollout of 5G technology to improve its connectivity and spur economic development. This report provides an overview of the latest developments and progress in 5G implementation in Panama.

Current State of 4G and 5G in Panama

  • 4G Deployment: At the time of this report, approximately 95% of Panamanians are connected to 4G LTE networks. Still, this statistic only accounts for about 39% connectivity of the actual land area of the country. Completing the coverage in remote towns is a top priority for the government and telecom carriers. 
  • 5G Initial Deployment: In terms of 5G deployment, Panama is advancing significantly but still not fully 5G capable. The two telecom companies in the nation, Cable & Wireless, and Tigo, have introduced 5G networks in Panama City only  , where they are promising faster speeds and better connectivity.
  • Infrastructure Development: To facilitate the rollout of 5G, the government has been investing in infrastructure upgrades, such as the building of cellular towers and the expansion of fiber optic networks. The Panamanian government anticipates releasing a call for bids from companies for 5G spectrum licenses by the end of 2024.

Key Developments and Business Opportunities

  • Government Support: Through investments, incentives, and legislation, the Panamanian government has been actively promoting the rollout of 5G, which has accelerated the deployment of 5G networks. 
  • Smart Cities: Panama has been investigating how having 5G technology could enhance public services, transportation, and urban infrastructure. 5G technology is considered a major enabler and a key to smart city success. 
  • Industrial Applications: Panama’s industrial innovation is anticipated to be greatly aided by 5G, especially in the areas of manufacturing, logistics, and agriculture.
  • Opportunities and Challenges: Although Panama has made strides, issues including customer awareness, infrastructure costs, size of the market, and concerns related to    spectrum allotment which has been delayed because of on doing research by the Panamanian Authority for Public Services (ASEP) still exist. However, the nation has a lot of opportunities due to the potential benefits of 5G.

With plans to extend network coverage and use the technology to spur innovation and economic growth, Panama is well-positioned to carry on with its 5G journey. 5G is anticipated to be crucial to Panama’s future as the nation makes infrastructural investments, encourages digital literacy, and tackles regulatory issues.

Panama’s progress and aspirations in 5G deployment is a testament to its commitment to technological advancement and economic growth. By quickly addressing challenges and seizing opportunities as they are presented, Panama can position itself as one of the regional leaders in 5G technology.

If you are interested in the Information and Technology sector in Panama, contact your U.S. Export Assistance Center local office or Kenneth Delvalle, Commercial Assistant in Panama by email at Kenneth.Delvalle@trade.gov