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Panama - Best Offshore Location?
a) Main Advantages
- US dollar based economy
- Earthquake free
- No active volcanoes
- No hurricanes
- No taxes on foreign source income
- Excellent living conditions
- Fully bilingual certified engineers
- Best submarine fiber optic access of the region
- No pollution
b) Telecommunication infrastructure
Panama has the best access to multiple high-bandwidth continental fiber optic networks in telecommunications infrastructure. The extremely low risk of natural disasters (hurricanes etc.), gives the Panama telecom sector security and reliability of service as well as a competitive advantage over other offshore jurisdictions.
c) Accessibility for installation and maintenance
Panama is extremely easy to access from almost anywhere, due to its central location in the middle of the Americas. Its proximity to large cities in the US and Europe makes it relatively cost effective to bring in specialist know how for installation and maintenance.
d) Relevant technical know how and human resources
Panama's long history as a international banking and services jurisdiction, has resulted in the availability of technical know how in internet technology and information technology as well as sufficient human resources to install and maintain ecommerce operations.
e) Location
Accessing Panama is easy from anywhere in the world. Living conditions are very similar to the US, but the cost of living is one-half.
f) Favourable tax regime
Panama is a zero tax jurisdiction. There are no double tax treaties that can be used for commercial activities. No VAT is payable on good or services exported from Panama.
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g) Hub for CyberCommerce
All the preceding advantages, incentives and infrastructure place Panama as an ideal location for:
- Internet Service Providers
- E-Commerce Providers
- Applications Outsourcing ASP
- Broadband Content Providers
- New Media Content Providers
- Exchange Traffic
h) Panama's Continental Fiber-Optic Network Link
The MAYA and ARCOS ring systems link the continental Americas and the Caribbean Basin.
Total investment for the two fiber-optic trunk systems is targeted at $217 million, and is to be divided between a mainly 14-member consortium, including world-class carriers such as AT&T, CTC Mundo, France Telecom, MCI, SPRINT, Star Telecom, Swisscom, TelMex WorldExchange and Cable & Wireless.
The MAYA-1 ring features relays in Florida, Mexico, Guatemala, Costa Rica, Panama, Colombia, Puerto Rico, Jamaica and Grand Cayman Island and, in addition to its own communications structure, provides a restoration path for the Pan-American cable. The ARCOS-1 trunk spans Florida, Mexico, Belize, Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Colombia, Aruba, Puerto Rico, the Dominican Republic and the Bahamas.
The GLOBAL CROSSING project connects Asia, the US, goes through the Panama Canal, the Caribbean countries, and Europe.
These submarine networks give Panama four (4) international connections via high-bandwidth, fiber-optical trunk routes, superseding the current satellite link-feed system that is now in operation. This in turn is already enabling fast and reliable connections for B2B, banking, e-commerce and other businesses as well as additional high-speed consumer activity units.
The OXYGEN network links the US Caribbean, goes through the Panama Canal, and connects to the Pacific ocean within Colombia, Perú, Ecuador, Chile, Brazil and Europe.
Ultimately, the main benefit of MAYA, GLOBAL CROSSING, OXYGEN, PANAMERICAN and ARCOS will be lower international prices for consumers. In addition, these new cables incorporate New Wave Division Multiplexing Technology that will allow extraordinary ultra high speed bandwidth applications, such as multimedia and digital video.
The MAYA 1, GLOBAL CROSSING, OXYGEN and ARCOS-1 projects represent yet another building block in Panama's quest to become Latin America's Telecom Hub, which the United Nations Education, Science and Culture Organization (UNESCO) has predicted will occur within the next few years.
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