Millicom announced that it exercised its right to terminate the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in the Central American country.
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.
After rejecting the two previously filed applications, El Salvador's Superintendence of Competition confirmed that it had received a new request for América Móvil to complete the acquisition process of 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.
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.
If the Sutel's proposal is approved, on December Costa Rica will eliminate the tariff regulation for the international telephone, internet and postpaid cellular telephony markets.
From a statement issued by the Superintendency of Telecommunications (Sutel):
The Superintendency of Telecommunications (Sutel), has started a process of public consultation of the technical analysis of the telecommunications markets.
Using a World Bank loan coverage and internet telephony will be expanded in the North Caribbean Coast, the South Caribbean Coast, the Autonomous Region, and Rio San Juan and Managua.
From a statement issued by the World Bank:
MANAGUA, August 17, 2016 – The World Bank (WB) and the Government of Nicaragua signed today an agreement to implement a project aimed at increasing broadband access and make further progress in the development of Information and Communications Technologies (ICTs), especially in the Caribbean region of Nicaragua.
The communications giant has requested authorization to operate in the country in the market of data transfer services under the model of leased lines.
Elfinancierocr.com reports that "...The leased lines data market includes services known as dedicated lines, which are connectivity services normally provided to companies and institutions. "
Between 2013 and 2015 data traffic grew by 200%, and the state-owned ICE continued to lose its share in the mobile phone market, going from 62% in 2014 to 58% in 2015.
From the report "Statistics in the telecommunications sector 2015 ," by the Superintendency of Telecommunications (Sutel):
At the close of 2015, "... a total of 139 operators and suppliers authorized by the Sutel were recorded.
The Bank of Guatemala is putting out to tender digital phone services for the period from February 1, 2016 and January 31, 2019.
Guatemala Government Purchase 4316320:
"General characteristics:
- Digital telephony service provided through two ISDN links or RDSI by its acronym in Spanish (Red Digital de Servicios Integrados), E1.
- The Bank of Guatemala will appoint a specialist to coordinate and supervise the work of installation, programming and commissioning of the E1 ISDN links. "
Even though demand continues to grow, operators are not able to grow due to lack of effective competition in the mobile market and delays in the allocation of spectrum.
A portion of customers in the cellular market and other telecommunications services such as internet and cable television are still dissatisfied, but telecommunications companies are not able to increase their services due to the slow rate at which the rules are set and at which infrastructure problems are addressed.
Since its implementation, the number of mobile phone users who have switched operators amounts to 340,000 and in the case of fixed telephony, to 34,000.
From a statement issued by the Public Services Authority of Panama (ASEP):
Three years after its implementation, the number of mobile phone users who have successfully completed the transaction and benefited from Number Portability amounts to 339,000, while for fixed telephony successful transfers total 33,706.
Operators of the telecommunications market in Costa Rica are calling for intervention by the regulator in rates to be removed and for operations to be carried out within a framework of real commercial freedom.
After more than six years of having promoted laws which opened up the telecommunications market in Costa Rica, no operator has the ability to unilaterally set final prices or manipulate conditions in the telecommunications market.