C&WP Disputes Mobile Spectrum Auction

Panama's public services regulator Asep must respect a concession contract with incumbent Cable & Wireless Panamá (CW&P) and wait for another year before launching an auction for a new mobile operator to enter the market, local daily La Prensa quoted a C&WP executive as saying.

Asep announced in May it would launch an auction for a new mobile license in October.

According to the executive, C&WP's concession license stipulates that C&WP, as well as operator Movistar Panamá, owned by Spain's Telefónica, are granted an exclusive hold on the mobile market "until the 11th year."

For the telecoms regulator, October 23 is the 10th anniversary of the signing of the concession contract with C&WP and the beginning of the 11th year, Asep's head Víctor Urrutia was quoted as saying.

However, C&WP interprets the same clause as meaning that the regulator must wait until the 11th anniversary of the signing of the contract.

The newspaper quoted C&WP corporate affairs officer Robert Mendoza as saying that it is studying what legal action it can take to stop the mobile auction.

Movistar said only that it was studying the matter, according to the paper."

Posted to the site on 27th June 2007