communication

Phone meetings to start

The Autoridad Nacional de los Servicios Públicos (Asep) will begin holding a series of meetings today with represenatives of the three companies vying for the two cell phone licenses being issued by the government.

During this period, which will last about a month, Asep will meet with company representatives to answer questions about the contracts they will be required to sign.

Asep anticipates putting contracts in place that will require the providers to charge for calls by the second, rather than rounding to the nearest minute, and to add security measures that will protect consumers if they lose their phone.

The government is also expected to require all cell phone providers to allow customers to keep their number the same even if they switch companies.

The three companies that have prequalified for the licenses are Digicel Panama, Telemóvil El Salvador and Claro Panama, a subsidiary of América Móvil owned by Carlos Slim of Mexico.

Companies have until April 3 to submit their bids. The government hopes to award the licenses later this year.

Panama currently has two cell phone providers, Cable and Wireless and Movistar.

Each of the two new companies will have to pay licensing fees estimated at $58 million. Government officials estimated that each company will have to invest at least $300 million in infrastructure to begin offering service.