America Movil gets green light to combine Brazilian assets

America Movil gets green light to combine Brazilian assets

01 AUG 2014

Anatel, the Brazilian telecoms regulator, has given approval for three companies owned by America Movil to be combined, with the condition that the consolidated organisation registers with securities watchdog CVM as a publicly-held business.

Mobile unit Claro will absorb cable TV operator Net Servicos de Cominicacao and long-distance fixed telephone company Embratel as part of the reorganisation, according to Reuters.

In order for this to happen, Claro, which is not currently listed, will need to open up to other investors under Brazilian telecoms rules that require concessions holders, or their controlling companies, to have an open capital structure.

Claro will not necessarily have to list shares on the stock market if it opens to other investors, an Anatel official told Reuters.

Claro is the third-biggest mobile operator in Brazil, with 68.8 million connections at the end of the second quarter, according to GSMA Intelligence figures. Market leader Vivo, which is owned by Telefonica, had 79.4 million connections, while Telecom Italia’s TIM had 74.2 million connections.

At the end of the second quarter, Brazil represented 26 per cent of America Movil’s wireless subscribers, following a 3.5 per cent year-on-year increase in subscriber volume.

The company said mobile data, PayTV and broadband revenues boosted its Q2 revenue in Brazil by 8.5 per cent to reach BRL8.8 billion ($3.9 billion). The company also claims to have the broadest LTE coverage in Brazil.

Brazil’s fourth-largest operator Oi has 51.5 million connections and is currently undergoing a merger with Portugal Telecom, with a deal that was recently tweaked to address concerns.


Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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