Agreement to secure mobile spectrum in Panama

30 October 2013

CABLE & WIRELESS COMMUNICATIONS PLC

LONG TERM AGREEMENT TO SECURE MOBILE SPECTRUM IN PANAMA

Panama mobile licence extended to 2037

Cable & Wireless Communications Plc (CWC) announces that its Panama business has secured long term access to several large blocks of radio spectrum which will enable the continued growth of mobile data services.

A new 20 year mobile licence agreement, approved by the Cabinet Council of Panama late yesterday, is to run from 24 October 2017 to 24 October 2037. Under the agreement, the Government will grant Cable & Wireless Panama an extension to the licence and access to the following radio spectrum for the sum of US$100 million (c.US40 cents per Megahertz (MHz) per head of population):

· Retained access to 25 MHz of the 850 MHz band

· Retained access to 10 MHz of the 1900 MHz band

· Additional 10 MHz of the 1900 MHz band

· 20 MHz of the country's currently unused 700 MHz band, which will be opened up in 2014 and designated for use by mobile services

Cable & Wireless Panama will be granted access to the additional block of 1900 MHz spectrum immediately and it will also gain access to the 700 MHz spectrum, a lower level frequency ideal for the transmission of mobile data over long distances, from August 2014.

The cost of the spectrum was calculated by Panama's National Authority of Public Services (ASEP) based upon the price paid by mobile operators for the last blocks of mobile spectrum sold in Panama in 2008.

The payment for the licence agreement will be satisfied from existing cash resources.

Tony Rice, the Chief Executive Officer of CWC, commented:

"We are proud to have served the Panama telecoms market since 1997, remaining the market leader over that period despite intense competition. In securing our long term future this agreement cements our position and ensures we can remain and grow as the best data provider in Panama."

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Notes to Editors

About +Movil

+Movil, CWC's Panama mobile brand, has the largest customer share in a highly competitive four operator market. CWC launched 4G (HSPA+) mobile data services in 2011, which accounted for 31% of mobile services revenue in the 2012/13 financial year. Mobile data penetration in the country as a whole is only around 11% of the population.

About Cable & Wireless Communications

Cable & Wireless Communications is a full-service communications business. We operate leading communications businesses offering mobile, broadband and domestic and international fixed line services in most of our markets as well as pay TV, data centre and hosting, carrier and managed service solutions. Our operations are focused on providing our customers - consumers, businesses, governments - with world-class service. We are the market leader in most products we offer and territories we serve. For more information visit www.cwc.com.

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