communications

Telecom industry upset by cost hike

The bill approved by the cabinet this week that promotes universal access to information and telecommunications technologies has received a cold reception from the industry.

The law orders all telecommunications companies, including Internet providers and television stations, to allocate 1 percent of their annual gross profits to trusts. The money would be used to finance projects to expand telecommunications networks in rural and indigenous areas.

Roberto Meana, general secretary of Telefónica Móviles S.A. (Movistar), believes legislating universal access is positive, but that the contribution of the private sector should be agreed upon beforehand. "A one percent rate is too high for private companies. It should be revised in the Asamblea Nacional when they decide to discuss the draft bill," Meana said. "We already pay one percent of our annual revenues for other programs. This will double our contribution."

But the government is maintaining that the contribution is needed to help bring the entire country up to modern standards of phone, Internet and cable access.

"The state must ensure that all citizens have free access to the powerful new telecommunications services -Internet access, broadband and multimedia content- in order to close the gap between social classes, said Ministra de Desarrollo Social Maria Roquebert León.

But authorities are convinced that programs such as "Connect to Knowledge" and "English for Life," financed by the public sector, will not be enough to reduce the digital divide that exists in Panama. According to official statistics, 78 percent of the population has cell phones, but this group is concentrated in urban areas only. And if cell phone coverage is measured in terms of territory, then a mere 40 percent of the country is covered.