Digicel Announces Investments in El Salvador

The President of Grupo Digicel has announced investments over the next eighteen months of more than $40 million.

Wednesday, December 5, 2012

In his short visit to El Salvador, Denis O'Brien was interviewed about the expansion, with topics covered such as the Salvadoran authorities refusal to authorize the sale of Digicel to Claro and the company’s future investments in the country.

An extract from the interview:

"What do you think of the Salvadoran authorities’ refusal to authorize the sale of Digicel to Claro?

It was a somewhat complicated issue, because we were selling our business in Honduras, and we were exchanging it for their business (Claro’s) in Jamaica, and in the midst of it all, Claro wanted to buy our business here in El Salvador.

I had mixed emotions because the business in El Salvador is quite successful. We had 108,000 customers when we came as investors in this business in 2006, and now we have over a million customers, so it has been fantastic for us. We have a very good management team and great staff.

So, when you have a very good deal and you look at the business, is part of a very complicated situation.

When we did not get permission, I was happy.

Have you already decided how much will be invested in El Salvador in the short term?

I think we're probably going to invest between 40 and 50 million dollars in El Salvador, and soon.

How soon, approximately, will you invest that amount?

Over the next 18 months, probably.

Have you thought, for example, in providing internet services?

If you look at the evolution of smartphones, I think it's pretty safe to say that technology now with HSPA (High-Speed Packet Access), 3.5G and 4G is much more stable, easier to download, so it is likely that we will explore internet deals added to our network. "

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