Liberty integrates América Móvil’s operation in Panama to the +Móvil network

Cable & Wirelessthe fixed and mobile telecommunications company of Liberty Latin America in Panama, completed the integration of the mobile services provided by the Claro unit of América Móvil in the country to its division +Mobilewith which the users of both companies are already served from the same cellular network.

The migration of all the users of clear towards +Móvil derives from an agreement for the acquisition of various assets signed in 2021 between América Móvil and Liberty Latin América after a valuation of 200 million dollars, which has since excluded the transfer of tower infrastructure and the “Claro” trademark.

After the addition of Claro users, the +Móvil network now serves nearly 4.5 million Internet and mobile telephony customers, in addition to the 2.4 million fixed accesses between telephony, broadband and pay television that are also served by Cable & Wireless, as well as a fixed telecommunications network with a reach of 2 million 236,000 Panamanian homes.

“Today we are connected to the largest network in Panama (…) The clients of both companies have robust coverage and talk to more people within their network. When two come together, Panama and you receive more (…) With this combination of networks, our resources will be greater and we will be able to provide our customers with the connectivity, service and added value they deserve throughout the country”, said +Móvil .

Last June, the Panamanian government authorized the purchase and sale of Claro Panama’s assets in favor of Liberty Latin America (LLA) for an amount of 200 million dollars.

The operation involves in more detail the transfer of a telephone company with a portfolio of around 770,000 prepaid and postpaid users and annual revenues of 160 million dollars, more spectrum bands at 700 MHz and 1900 MHz, and 4G-cellular coverage. LTE over 80% of the Panamanian population and growing.

After regulatory validation, the company Radiomóvil Dipsa SA de CV transfers control of Claro Panamá SA to the company Cable & Wireless Panamá SA, a local subsidiary of Liberty Latin America and the new owner of that telecommunications operator.

“Cable & Wireless Panama is authorized to replace Radiomóvil Dipsa as operator partner of Claro Panama, within the concession granted by contract No. 11-2008 of May 27, 2008. And the National Public Services (ASEP) to carry out the necessary procedures that are incumbent on it and to carry out the authorized concentration between the concessionaires Cable & Wireless Panama (acquiring company) and Claro Panama (acquired company)”, indicated then the cabinet resolution No. 69 of the Republic of Panama published in the Official Gazette of that country.

“Cable & Wireless Panama has received all the necessary regulatory approvals to complete the acquisition of América Móvil’s operations in Panama (…) With the publication in the Official Gazette No. 29563-B of Cabinet Council Resolution No. 69, has authorized the modification of Claro Panama’s concession contract, in force to transfer the rights and obligations as operator in favor of Cable & Wireless. The next step will be the closing of the transaction, which is subject to the fulfillment of all the conditions between both parties,” the company said.

Liberty also takes over this operation with 700 and 1.9 GHz radio bands, which it will combine with its own blocks in the 700, 850 and 1900 MHz spectrum that +Móvil already operates.

The company will later assess how much more spectrum it will buy in the upcoming auction of AWS frequencies (1.7/2.1 GHz) that the authority will tender in a package of 120 MHz of available signals.

After Claro’s asset combination operation with +Móvil, the Panamanian market will be competed by three operators: Liberty, Tigo and Digicel, and eventually by only two companies, after Digicel announced its exit from Panama after not being able to prevent the Claro-Liberty concentration.

With this new scenario, Tigo, which in 2019 bought Movistar Panama for 650 million dollars, would be the only weighty operator against Liberty.

Liberty Latin America’s revenues grew 4.0% during the second quarter of 2022, reaching around 1.2 billion dollars.