The Panamanian Cabinet Council has authorized a major consolidation of state telecommunications services. This move will centralize all government communications through a single network starting in 2026, a strategy projected to save the nation at least 39.1 million dollars annually. The Cabinet Council (Panama) gave the green light to the National Authority for Government Innovation (Panama) to manage the new contracts.
Three separate resolutions formalized the approval for different service components. These include data center operations, public internet access, and integrated communication links combining data transport and security platforms. Officials describe the initiative as a critical step toward modernizing the state’s digital infrastructure while achieving significant financial efficiency.
Contract Details and Projected Savings
This new centralized model will operate for a period of sixty months. Its term runs from January 1, 2026, through December 31, 2030. The contract structure follows an indeterminate amount model because final costs depend on the fluctuating demand from various public entities. Despite this variable pricing, technical evaluations estimate the required services will exceed three million dollars in value.
The government’s existing Multiservice National Network serves as the foundation for this expanded system. It functions as a centralized telecommunications ecosystem that guarantees interoperability between institutions. This network also connects the government with citizens and provides secure access to critical state platforms like the ISTMO system managed by the Ministry of Economy and Finance.
“The Multiservice National Network guarantees the interoperability between institutions, their connection with citizens, and secure access to critical state platforms,” the Cabinet Council stated in its official resolution. [Translated from Spanish]
Currently, this network provides services to more than 120 government institutions. Its coverage extends across more than 7,000 sites nationwide. Services delivered include fixed voice, internet, data links, data centers, and cybersecurity. The consolidation effort aims to build upon this existing framework by unifying rates and incorporating new functionalities.
Selected Providers and Security Strategy
Following extensive technical, administrative, and financial evaluations, the government selected a roster of companies to provide the various services. The selected firms represent a mix of local and international telecommunications expertise. For the crucial data center services, the approved providers are Servicios de Tecnologías de Información de Misión Crítica S.A., Panama Digital Gateway S.A., Cable & Wireless Panamá S.A., and Telecomunicaciones Digitales S.A.
The contract for public internet access, known as Service Number 211, will be handled by Metro MPLS S.A., Trans Ocean Network Corp., Galaxy Communications Corp., Cable & Wireless Panamá S.A., and Telecomunicaciones Digitales S.A. A key provider for communication links, ocean network corp, was selected alongside Galaxy Communications Corp. and the two major carriers. This selection of a communications corp for multiple services highlights the government’s focus on robust partnerships.
Centralization forms the core of a broader strategy to guarantee security standards and optimize public resources in the technological sphere. The National Authority for Government Innovation previously endorsed this exceptional procurement procedure. Its governing council issued three supporting resolutions on September 29, 2025. Those decisions were substantiated by the pressing need for robust, reliable platforms with greater coverage.
Panama’s government is now positioned to streamline its entire digital operations. This ambitious project represents one of the most significant consolidations of state telecommunications in recent years. The anticipated multimillion-dollar savings will begin accruing in 2026, directly benefiting the national budget.