Telecommunication sector was in boom in 2009

In 2009, telecommunications had a performance higher than expected, because aggressive entry of Digicel (a telecommunication company). Digicel not only took share of incumbent companies (Cable & Wireless and Movistar), but has expanded the market size of the cellular phone segment. Telecommunications value added expanded extraordinarily by 49.6% in the third quarter of 2009, due to this cellular phone supply expansion and consumption boom. The extraordinary expansion of telecommunications has been one of the factors that helped to offset the GDP contraction. Panama Economy Insight expects to moderate of telecommunication growth rates in 2010.