Mexican operator Iusacell has said it will require US$800m in capital to expand over the next three years.
In a conference call a Televisa executive said Iusacell might issue debt to raise the capital, according to a Reuters report. Televisa owns a 50%…
Mexican operator Iusacell has said it will require US$800m in capital to expand over the next three years.
In a conference call a Televisa executive said Iusacell might issue debt to raise the capital, according to a Reuters report. Televisa owns a 50% stake in the operator.
Iusacell’s other option would be to issue equity. Televisa’s Alfonso de Angoitia said that if this was the case, equity would be contributed equally by his company and Grupo Salinas, which owns the other 50% of Iusacell.
Iusacell currently has just over 6% of Mexico’s wireless market but the company has ambitions to grow that figure to between 15% and 20%. Earlier this year it entered into a network sharing agreement with Telefonica.
The country’s mobile sector is dominated by Carlos Slim’s Telcel brand which has 70% of Mexico’s subscribers.
In the call Angoitia reportedly called for asymmetrical regulation on America Movil’s Telcel, and also for the authorities to ban handset exclusivity as it deters competition.
Televisa, Mexico’s largest broadcast provider, received regulatory approval to buy a 50% stake in Iusacell from Grupo Salinas for US$1.6bn in June, which means it now offers quad play services.
