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.
During the first three months of 2019, Central American countries imported cell phones for $329 million, 27% more than what was reported in the same period of 2018.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAPHIC caption="Click to interact with the graphic"]
On November 14, the Superintendence of Telecommunications of Guatemala will auction a short number, which is used by commercial entities to provide advertising services, information, assistance and services.
So far, 56 four-digit telephone numbers have been auctioned in the country and the next one to be made available to companies will be 1710, which may be used as a routing mask to an eight-digit number.
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.
In Guatemala, the telephone company Tuenti reported that it will now be part of América Móvil, owner of the Claro brand, following the sale of Telefonica's shares in early 2019.
The sanction was imposed following a complaint made "by TVC Network, S.A. de C.V., against Digicel, S.A. de C.V., for a possible abusive dominant position."
The complainant stated that this economic agent was creating barriers to the entry of competitors or the expansion of existing ones in the market for the termination of national and international calls, informed the authorities of the country.
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."
The Superintendence of Telecommunications authorized the economic concentration requested for Millicom to acquire the shares of Telefonica de Costa Rica TC S.A.
The number of active cell phones in the country reached 5.43 million between 2018, 3% more than what was reported in 2017, increase explained by the behavior of the number of mobile phones with type of service per contract.
Reports of the General Comptroller of the Republic detail that between 2017 and 2018 the number of active cell phones in the country went from 5,280,195 to 5,432,789, which is equivalent to a 3% variation.
In El Salvador, the Superintendence of Competition reported that "it has declared inadmissible the request for economic concentration presented by América Móvil S.A.B. de C.V., on March 5 of this year."
"When a new application for authorization is submitted, the SC will continue this process on the basis of a technical, legal and economic analysis, under the principle of independence that the LC mandates and distinguishes its actions, with the sole objective of protecting and ensuring competition in the country," reported the Superintendence of Competition (SC).
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 company reported that it has transferred the entire share capital of Telefónica Celular de Nicaragua, S.A. to Millicom International Cellular, S.A., for a price of $437 million.
On May 16, Telefónica S.A. reported that "Following the communication published on February 20, 2019 (with entry registration number 274959), Telefónica announces that once the relevant regulatory approvals have been obtained, Telefónica Centroamérica Inversiones, S.L.., a company owned, directly and indirectly, 60% by Telefónica and 40% by Corporación Multi Inversiones, has today transferred the entire share capital of Telefónica Celular de Nicaragua, S.A. to Millicom International Cellular, S.A. for a price of 437 million dollars, approximately 390 million euros at the current exchange rate". Consult Telefónica's full press release.
Although Samsung and Apple mobile phones represent more than half of the devices used in the region's markets, there is an upward trend in the preference for devices from the Chinese brand Huawei.
An analysis of the Trade Intelligence Area at CentralAmericaData provides interesting data on the use and preference of cell phone brands in the region.
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