Report: América Móvil wants Arsat stake to help it expand Argentina play

By Jim O'Neill on May 23 2016 at 6:30 AM
Report: América Móvil wants Arsat stake to help it expand Argentina play

Argentina’s state-owned communications operator Arsat and Buenos Aires-based cable company TeleCentro could be in play, with published reports saying America Movil is interested in acquiring assets from both companies.

América Móvil chief Carlso Slim reportedly has met with Argentina’s President Mauricio Macri, shopping for radio spectrum and fiber deployments that span the country.

It’s not the first time Slim has gone cherry picking in Latin America; América Móvil in June said it would invest up to $50 billion in Latin American networking infrastructure.

Móvil operates under the brand of Claro in Argentina. It saw first quarter sales increase some 30%, which could help explain the company’s interest in acquiring – or at least investing in – the network assets. If Móvil were to invest in Arsat – Argentina’s state-run satellite business – it would give Claro expanded access to satellite capacity, helping it to reach more remote areas where fixed broadband penetration is non-existent, or very low.

Published reports indicate Argentina’s government may be a willing seller; Consulting firm McKinsey has said telecom competition could be jump started with a sale of some – or all – of the satellite business.

Despite Móvil presence in the country through its Claro and Telmex Argentina subsidiaries, Argentina’s Broadcast Media and Telecommunications Law currently prevents it from providing provide pay-TV services. A deal for TeleCentro could give it the ability to sell quad-play services in the short term.

AT&T, which bought DirecTV and its sizeable Latin America assets last year, also has plans to expand its investment in the country.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

READ THESE NEXT

LatAM, SVOD, Mobile
Latin America seeing golden age of TV in form of SVOD
Aug 22 2017 7:30 AM

Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.

LatAM, Live sports
Could streaming be the only way to watch Argentinian soccer?
Jan 03 2017 2:30 PM

Consumers’ appetite for live sports streamed online is continuing to create opportunities for leagues and teams around the world to expand their audiences and create new means to monetize their product. An array of sporting events from the Olympics to the Premiere League have found that audiences have grown increasingly accustomed to watching live sports online.

Demand for bandwidth, OTT video spurs FTTH investment in LatAm
LatAM, Broadband, OTT
Demand for bandwidth, OTT video spurs FTTH investment in LatAm
Jan 03 2017 1:45 PM

Growing consumer spending power and affordable multiplay service bundle are fueling the adoption of prepaid satellite pay-TV services (DTH) in Latin America, especially among consumers who previously were not able to afford service offerings.

That new class of subscribers, in turn, is influencing operators to invest in expanded networks, especially fiber-to the-home (FTTH).

LatAM, SVOD, Netflix
Netflix has more than 70% of Mexico’s SVOD market
Dec 12 2016 2:45 PM

Five years after it launched in Mexico, Netflix is dominating the SVOD market, with a share estimated to be more than 70% of the 6.2 million households with an SVOD service at the close of Q3.