Size of Domestic Market
Overview
The information and communications technology market in Panamá is comprised of three main groups: individuals, households, and businesses. Panamá has a population of about 3,060,090, and about 677,000 households. Regarding to economic sectors, the most important is the services sector. Because of the dramatic improvement of the telecommunications infrastructure in the last five years and because of the new service providers that have entered the market as a result of de-regulation, it is now more feasible for this sector to implement new technologies. More detailed information about the ITC market is presented below.
Important figures relating to the ICT market
Population |
3,060,090 (2001) |
Households |
677,000 |
GDP |
$11,319.1 m (2002 est.) |
Phone Lines/100 |
13.6 (2002 est.) |
Cell Phones/100 |
19.2 (2002 est.) |
Web Users/100 |
1.5 (200) |
(Sources: Regulating Entity of Public Services, 2002 MEF Annual Economic Report)
| Services | 76% |
| Industry | 17% |
| Agriculture | 7% |
(Source: CIA World Fact Book)
Fishing |
$213.5m |
Hotels and Restaurants |
$323m |
Construction |
$461.6 |
Agriculture |
$542.6 |
Manufacturing |
$820.5 |
Business |
$1,601m |
(Source: 2002 MEF Annual Economic Report)
The information technology market involves four main components: computers, software, networking, and telecommunications. It is perhaps more adequate to label the market as the ICT (Information and Communications Technology) market. In Panamá, all of the economic sectors would be part of the ICT market. Many of the economic sectors have not implemented new technologies because of certain limitations such as telecommunications infrastructure, and limited information about new technologies. It is expected that all economic sectors will have greater access to new technologies because of the recent de-regulation of the telecommunications market, as well as because of the new government electronic initiatives.
According to the figures presented above, the most important sector is the services sector. The services sector include operation of the Panama Canal, banking, the Colón Free Trade Zone, insurance, container ports, flagship registry, and tourism. (3)
The developing Panamá-Pacific Special Economic Area, located in Howard, is also expected to become an important segment of the services sector. This area is expected to house 240 businesses specializing in technology, communications, manufacturing, and other areas.
In short, the ICT market will most likely grow, starting in 2003. New service offerings in telecommunications, newer technologies becoming available, outsourcing of services (such as call centers) becoming a possibility for domestic companies, and the new government electronic initiatives, all translate into growth possibilities for this market.