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-   -   Verizon to sell Latin American and Caribbean operations to America Movil (http://forums.wirelessadvisor.com/wireless-news/53105-verizon-sell-latin-american-caribbean-operations.html)

EdwardP 04-03-2006 1:28 PM

Verizon to sell Latin American and Caribbean operations to America Movil
 
Verizon announced this morning that they are selling their Latin American and Caribbean operations to America Movil and to a company jointly owned by America Movil and Telefonos de Mexico.

America Movil owns the TracFone prepaid MVNO in the United States.

Yankees368 04-03-2006 2:27 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Will this end the free service in those areas for Verizon customers?

bobolito 04-03-2006 3:34 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
WHAT!?:eek: I wonder what this means for Verizon Dominicana. Another name change? Just two years ago they changed the name from Codetel to Verizon Dominicana.

And most importantly, Verizon Dominicana is CDMA, so will this mean that it will be converted to GSM? America Movil affiliates are all GSM across Latin America. So, if they choose not to convert the 2G portion, at least they should deploy UMTS in the future.

I bet this only means they are getting ready to buy their 45% VZW ownership from Vodafone.

Here's the article from America Movil's website:
Quote:

MEXICO CITY (MEXICO), April 3, 2006. América Móvil, S.A. de C.V. (“América Móvil”) (BMV: AMX; NYSE: AMX; Nasdaq: AMOV; LATIBEX: XAMXL) today announced that it has entered into agreements with Verizon Communications Inc. (Verizon) to acquire Verizon’s 100% interest in Verizon Dominicana, C. por A. (Verizon Dominicana) for a purchase price of U.S.$2,062 million and a 52% interest in Telecomunicaciones de Puerto Rico Inc. (PRT) for a purchase price of U.S.$939 million. The transactions announced herein are subject to regulatory approvals and other customary conditions. We expect closing of the transactions would occur during 2006.

Verizon Dominicana is the largest telecommunications service provider in the Dominican Republic with over 752 thousand wireline subscribers and 1.8 million wireless subscribers as of December 31, 2005. PRT is the largest telecommunications service provider in Puerto Rico with over 1.11 million wireline subscribers and 485 thousand wireless subscribers as of December 31, 2005. América Móvil has agreed with Verizon to extend an offer to all other PRT shareholders to purchase their shares at the same price per share paid to Verizon.

As separately announced today, a joint venture between Teléfonos de México, S.A. de C.V. (Telmex) and América Móvil has entered into an agreement with Verizon to purchase Verizon’s equity interest in Compañía Anónima Nacional Teléfonos de Venezuela (CANTV).

About América Móvil
América Móvil is the leading wireless provider in Latin America, with over 93.3 million wireless subscribers December 31, 2005. The company also offers wireline services to 2 million landlines as of December 31, 2005.



bobolito 04-03-2006 3:36 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by Yankees368
Will this end the free service in those areas for Verizon customers?

What do you mean free service? There isn't any free service to those areas.

It WILL mean, however, that Verizon Wireless customers in the US will pay higher roaming fees per minute when going to the affected Caribbean and Latin American areas.

Yankees368 04-03-2006 4:29 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by bobolito
What do you mean free service? There isn't any free service to those areas.

It WILL mean, however, that Verizon Wireless customers in the US will pay higher roaming fees per minute when going to the affected Caribbean and Latin American areas.

Oh, I always thought those areas were free roaming for vzw customers. Oh well.

bobolito 04-03-2006 5:03 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by Yankees368
Oh, I always thought those areas were free roaming for vzw customers. Oh well.

haha....nop! Verizon users pay less, though. I believe Sprint users pay $1.29/min to roam on Verizon Dominicana but Verizon US users pay only $0.69/min.

One would think they won't charge you roaming, but they are not that nice. In Europe it's the same deal. T-Mobile users here in the US have to pay roaming when they roam in the T-Mobile UK or German system.

roamer1 04-03-2006 5:33 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by bobolito
What do you mean free service? There isn't any free service to those areas.

There's "free" roaming in Puerto Rico...which is being sold.

More than likely, America Movil will keep things at VZDR/VZWDR and PRTC/VZWPR largely as-is...meaning that VZWDR and VZWPR will stay CDMA, that VZW customers will continue to receive "free" roaming in Puerto Rico via some sort of sweetheart roaming deal, etc. Of course, it's possible that VZW could shift roaming in PR/the DR to Centennial -- who is CDMA in PR and the DR, unlike in the 48 where they're GSM -- or to SPCS in PR.

-SC

agentHibby 04-03-2006 6:19 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Bye Bye VZW Puerto Rico:pissed: :devil: :thumbsdow

Fathead 04-03-2006 7:30 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by bobolito

I bet this only means they are getting ready to buy their 45% VZW ownership from Vodafone.




That's a safe bet.

bobolito 04-03-2006 8:22 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by roamer1
There's "free" roaming in Puerto Rico...which is being sold.

-SC

Yeah, but PR is part of the US. I was referring to the international locations. Sorry for not clarifying.

With Cingular, Sprint and T-Mobile offering free roaming service in Puerto Rico (Sprint and Cingular are actually native), I highly doubt Verizon will start charging their US customers for roaming in PR. It would seem logical that they will shift their roaming privileges to Sprint since they are one of the preferred roaming partners in the rest of the US.

Interestingly, besides T-Mobile, Verizon will be the second national wireless carrier without native service in PR. I think they went too far there.

agentHibby 04-03-2006 8:46 PM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by bobolito
I bet this only means they are getting ready to buy their 45% VZW ownership from Vodafone.

Vodafone says no dice so I wonder what VZW is up to now? :hmm:

Yes I know that old statement all businesses are for sale if the price is right.

Shizuka 04-04-2006 8:10 AM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by bobolito
I bet this only means they are getting ready to buy their 45% VZW ownership from Vodafone.:

I agree with Bobolito.

I think I heard somewhere that the Puerto Rico government is selling also the 48% from PRTC/VZWPR.

ehcruzan 04-04-2006 11:39 AM

Re: Verizon to sell Latin American and Caribbean operations to America Movil
 
Quote:

Originally Posted by roamer1
There's "free" roaming in Puerto Rico...which is being sold.

More than likely, America Movil will keep things at VZDR/VZWDR and PRTC/VZWPR largely as-is...meaning that VZWDR and VZWPR will stay CDMA, that VZW customers will continue to receive "free" roaming in Puerto Rico via some sort of sweetheart roaming deal, etc. Of course, it's possible that VZW could shift roaming in PR/the DR to Centennial -- who is CDMA in PR and the DR, unlike in the 48 where they're GSM -- or to SPCS in PR.

-SC

VZW uses SPCS for roaming in the US Virgin Islands so your SPCS does seem to be a likely candidate for PR roaming like you suggested.


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