What Happened
Panama has set a new price for mobile operators to secure the rights needed to deploy 5G service nationwide. The Cabinet approved a measure directing the National Authority for Public Services, known as ASEP, to establish a fee of $235,034 per megahertz for the use of radio spectrum in the mid-band frequencies tied to 5G development.
The decision applies to the bands at 1.4 GHz, 2.3 GHz, 2.5 GHz and 3.5 GHz. Those frequencies are central to the next generation of mobile service and will allow companies to expand fifth-generation networks beyond the limited testing already underway in parts of the country.
Current mobile providers TIGO and Más Móvil are eligible to acquire the spectrum rights and compete to offer 5G services to consumers.
Why the Price Matters
Government officials say the lower price is meant to encourage investment in infrastructure, improve service quality and keep the sector competitive. The administration framed the move as a way to make deployment more attractive for telecom companies while creating conditions for broader 5G coverage.
Telecommunications experts have said 5G can significantly increase connection speeds and support a much larger number of connected devices. The technology is expected to drive new services and applications, including telemedicine, autonomous vehicles, remote surgery, smart cities and the growth of the Internet of Things.
Officials have also said 5G traffic could rise sharply by 2030, increasing pressure on networks to deliver faster and more reliable service for both consumers and businesses.
Reaction From Operators
Más Móvil welcomed the Cabinet’s approval of the new spectrum pricing. The company said the estimated $235,000 per megahertz marks a major improvement over earlier pricing structures that exceeded $1 million per MHz and places Panama closer to levels seen in parts of Central and Latin America.
The company added that it expects to expand plans, coverage and technology investments as the 5G rollout advances. TIGO also was asked about the measure and said it is analyzing the decision.
What This Means for Panama
The pricing move opens the door for a more structured 5G market in Panama and signals a push to accelerate mobile modernization. If operators move forward with spectrum purchases and network investment, consumers could eventually see faster mobile service and more advanced digital offerings.
For Panama’s broader economy, the rollout could support industries that depend on reliable connectivity and create a foundation for new digital services. The decision also places the country alongside regional markets working to make 5G deployment more financially feasible for operators.