Merger of Cable Companies in Costa Rica Denied

The Superintendency of Telecommunications (Sutel) did not authorize the merger between Tigo and Telecable, without disclosing in detail the reasons for this decision.

Thursday, April 30, 2015

The Superintendency of Telecommunications (Sutel) did not authorize the merger between Tigo and Telecable, without disclosing in detail the reasons for this decision.

The Superintendency of Telecommunications (Sutel) has ruled against the merger which the the two companies intended to undergo. An article in Nacion.com reports that Norman Chaves, Corporate Affairs Manager of Tigo, said that "... the risk posed by the alliance between the two companies affecting competition in some sectors of the country was questioned." He added that "... We will review the decision of the Sutel and follow proper administrative channels to continue this process. We firmly believe that this integration would benefit consumers, and industry and contribute to bridge the digital divide in Costa Rica. "

"... With this resolution both Telecable and Tigo can operate individually, as they have been doing to date. "

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