The Competition Superintendence in El Salvador has approved a merger between AMNET and Telefónica Multiservicios having determined that it will not generate a significant limitation of current competitive conditions.
From a press release from the Superintendence of Competition:
The Competition Superintendence of El Salvador has approved the economic concentration between AMNET and Telefónica Multiservicios after determining that it will not generate a significant limitation to current competitive conditions.
The Superintendency of Competition in El Salvador has agreed to process a merger request by Amnet and Multi Telefónica.
From the press release from the Superintendency of Competition in El Salvador:
The Superintendency of Competition (SC) has accepted an application for authorization of an economic concentration by the Telecommunications companies Amnet and Telefonica SA Multi, due to Amnet’s purchase of a client list and some assets directly related to the provision of telephone and internet services from the company Telefónica Multiservicios.
Since June, the company is offering data services and corporate Internet for companies.
For now, the service will only be available for corporate customers located in the Greater Metropolitan Area (GAM).
"This investment was done in two phases. Firstly, $1.5 million were invested in optic fiber network infrastructure", reports Nacion.com. "... an additional $2 million will be spent in the next 10 months to extend the coverage to 65% of the country...".
The Superintendent of Telecommunications of Costa Rica estimates that it will deliver the first licenses to operate in the market in July.
The period specified by the Telecommunications Superitendent (Sutel) is consistent with the terms of the General Telecommunications Law, and it contemplates a resolution of all the objections to the admission of the different businesses presented by the Costa Rican Institute of Telecommunications (ICE) and RACSA.
El Salvador is the first country in Central America where there was a complete merger.
Tigo’s parent company, Millicom International Cellular S. A., invested $14 million to expand Amnet's network in the country.
La prensagrafica.com reported statements by Ignacio Baratelli, CEO of Tigo El Salvador: "Amnet is now Tigo. Beginning today, all customers are covered under the same Tigo Banner. Integration of the two companies represents 800 direct and approximately 5 thousand indirect jobs and over 45 thousand outlets in El Salvador, of which 60% are micro businesses."
These two companies, along with WorldCom, are the first three to request authorization from Sutel to offer telecommunications services.
Mercedes Aguero writes in an article on Nacion.com: "According to the new law which regulates the telecommunications sector, any company that offers services for which they receive payment must have the approval of Sutel.
The Swedish firm Millicom has purchased the telecommunications company AMNET for 510 million dollars, and will acquire its 350,000 cable clients in Honduras, Costa Rica and El Salvador.
AMNET offers services of cable television, telephone and internet as a multimedia "Triple Play" package.
The company has the biggest fiber optics network in the region and is the largest cable company in El Salvador and Costa Rica.
Grupo ICE, composed of the Costa Rican Electricity Institute (ICE) and its subsidiaries Radiográfica Costarricense (RACSA) and Compañía Nacional de Fuerza y Luz (CNFL), joined the Chamber of Information and Communication Technologies of Costa Rica (CAMTIC) as a strategic partner since June 2009.