After Millicom announced that it exercised its right to cancel the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in Costa Rica, the Spanish firm will focus on strengthening its operations in the Central American country.
Eight months after the Telecommunications Superintendence authorized the economic concentration requested for Millicom to buy the shares of Telefónica de Costa Rica TC S.A., the parties announced on May 2nd that they had decided to rescind the agreement.
With the admission of a new procedure for the authorization of economic concentration, presented by América Movil and Telefonica de El Salvador, begins "the technical, economic and legal analysis that will determine whether or not the transaction will cause a significant limitation of competition."
Both companies submitted this third application for authorization on 19 September this year.
The Mayor's Office of Managua filed a lawsuit against Millicom, arguing that the company has a debt of almost $1 million on account of five years of arrears in the payment of the Real Estate tax.
The debt claimed by the City Hall corresponds to the alleged omission in the payment of the municipal tax corresponding to 2014, 2015, 2016, 2017 and 2018, a period in which the assets still belonged to Telefónica.
The Superintendence of Competition of El Salvador once again declared "inadmissible the request for authorization of economic concentration presented by América Móvil, which would consist of the acquisition of the share capital necessary to control Telefónica's operations."
After Telefónica was acquired by Millicom, the company plans to invest $1.25 billion in the next five years to expand the network and its services to companies in the country.
On May 16, Millicom reported that it closed the acquisition of Telefonía Celular de Nicaragua, S.A., the number one mobile operator in the country, in addition to TIGO Nicaragua's existing cable operation.
The mergers and acquisitions being reported in Central America are largely because not all companies in the region are willing to make the heavy investments that the transition to 5G technology will require.
The most recent register of the sale of assets of one of the Central American competitors is the case of Telefónica, which on January 24 reported that for $648 million it sold to América Móvil all the shares of Telefónica Guatemala and 99.3% of Telefónica El Salvador.
In the last eleven years in Guatemala, companies providing telecommunications services have invested just over $1.26 billion in the sector.
Figures from the Bank of Guatemala specify that Telecommunications is the fourth most important economic activity, according to the flows of Foreign Direct Investment that have reached the country, since between 2007 and 2018 an average of $105 million per year has been invested.
America Movil reported that planned investments in the Dominican Republic over the next three years will focus on implementing 5G technology and developing new applications.
According to America Movil executives, which owns the Claro Dominicana brand, the Caribbean country is one of the markets where the company has experienced the highest growth in data consumption per user.
Instituto Costarricense de Electricidad is evaluating the Salvadoran market to determine if there is an opportunity to establish itself as a new broadband operator.
The state telecommunications company already has a presence in Nicaragua, where in conjunction with the state company Enatrel, it operates the company Telecomunica, which provides internet and television services.
Representatives from the telephone company Tigo in El Salvador, announced that in 2018 they will invest $100 million in the expansion and maintenance of their network.
The telephony company started operating its LTE network last year, and in 2018 it plans to maintain and expand its infrastructure.
Marcelo Alemán, CEO of Tigo El Salvador, told Laprensagrafica.com that the investment of " ... $100 million will be for infrastructure and maintenance works ..." of the network, and it will also be investing "... another $150 million in promoting its products and services ... "
At the close of 2016, Comunicaciones Celulares S.A. had 52% of mobile phone users in operation, followed by Telecomunicaciones de Guatemala S.A. with 26% and Telefónica Móviles Guatemala S.A. with 22%.
The statistics bulletin for the second half of 2016, prepared by the Superintendency of Telecommunications, provides information on telephony and telecommunications in Guatemala concerning the operators: Commercial Network -ORC-, Local Network -ORL- and International Port-OPI-.
"The regulation exercised by the Siget in the retail mobile market discourages investment in infrastructure and the acquisition of larger portions of the spectrum."
Without the regulation of retail prices, the Salvadoran mobile phone market would have incentives for investments with social and economically desirable ends, concludes the study entitled "Analysis of the regulation of retail prices of mobile telephony in El Salvador",prepared by the Center for Studies on Telecommunications in Latin America.
The state run electricity company ICE and Claro have obtained contracts to build infrastructure to provide internet and mobile telephony services in 620 communities in the province of Limon.
From a statement issued by the Sutel:
January 5, 2017.The National Telecommunications Fund (FONATEL) through Banco Nacional, as administrator of the Trust, signed contracts with Instituto Costarricense de Electricidad (ICE) and Claro to bring internet telephony to 620 vulnerable communities in the districts of Siquirres, Pococi, Guácimo, Matina, Limón and Talamanca.
A tender is being launched in Costa Rica for seven generic blocks (2 x 5 MHz) in the bands of 1800 MHz and 1900/2100 MHz of the radio spectrum for mobile telephony and Internet.
Government Purchase No. 354-2015 Costa Rica-TEL-MICITT:
"The Superintendency of Telecommunications (Sutel), is putting out to tender by means of a Public Act seven generic blocks (2 x 5 MHz) in the bands of 1800 MHz and 1900/2100 MHz for mobile telephony and internet services.
Of the 752,952 customers who in the past five years migrated from one provider to another in search of better quality and service, 94% correspond to mobile phones.
From a statement issued by the National Public Services Authority:
Five years after the implementation of Number Portability in Panama, figures show that to date 752,952 customers have migrated from one provider to another looking for a better quality of service and the best deals.