Denis O'Brien's Digicel Central American Holdings Limited (DCAHL) has snagged a new licence in Panama, paying out US$86 million for a third foothold in that region.

DCAHL, which is a separate entity from Digicel Group Limited and Digicel South Pacific Limited - but all owned by O'Brien - said the licence was acquired Wednesday through its wholly owned subsidiary, Digicel (Panama) SA under competitive bid.

Its rivals in that market are Movistar (Telefonica) and Cable & Wireless, but also America M-vil which also received a licence.

Digicel Central America is already operational in El Salvador, where investments over a year have reached US$190 million and mobile coverage 95 per cent.

It will roll out in Honduras later this year.

In Panama, a country of more than three million, Digicel is promising to grow the mobile market there by 30 per cent in five years.

"Significant investment in Panama is planned to build a world-class network and operation that is set to stimulate growth in the mobile market by increasing mobile penetration within the next five years from approxi-mately 60 per cent to 90 per cent," the company said in a statement, without disclosing the size of the capital spending planned.

Digicel Panama will create 300 direct jobs, but, possibly through the dealership network that it builds in each market, says indirect employment could rise to 1,000.

lavern.clarke@gleanerjm.com

SOURCE: Financial Gleaner, Friday, May 9, 2008