America Movil’s Brazil units mull merger of operations

Rio de Janeiro, April 13 (IANS/EFE) The Brazil units of business magnate Carlos Slim’s America Movil – Embratel, Claro and NET – said Friday they have launched studies with a view to a potential merger of their operations.

The final decision will depend, among other things, “on the satisfactory conclusion of the studies and analyses to be conducted”, as well as the conditions set by telecoms regulator Anatel, the companies said.

The process was launched last year after fixed-line phone and satellite television operator Embratel acquired control of NET.

The proposed merger of operations would create a telecoms giant with the leading position in Brazil’s pay TV and broadband Internet markets (NET) and the second-biggest share of the country’s mobile phone sector (Claro).

The process would resemble one in which Spain’s Telefonica merged its fixed-line and mobile units in Brazil into a single company.

Such a move by America Movil has been expected since 2011, when a law came into force allowing telecoms companies to offer pay TV services.

That legislation further strengthened the biggest players in Brazil’s telecoms sector, including local firm Oi, which is the fixed-line market leader and also provides mobile phone, broadband and pay TV service.

–IANS/EFE

rd

The opinions, beliefs and viewpoints expressed by authors, news service providers on this page do not necessarily reflect the opinions, beliefs and viewpoints of Hill Post. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual. Hill Post makes no representations as to the accuracy or completeness of any information on this site page.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.