Verizon a candidate for Telefónica's Mexico assets?
US telecommunications giant Verizon has the financial strength to buy telecoms operator Telefónica's Mexican assets which the Spanish operator seeks to divest, according to a report by local daily El Universal.
Verizon Wireless ended 2Q18 with 116mn wireless subscribers in the US versus around 89mn for AT&T, which also serves over 16mn mobile subscribers in Mexico. The company ended 2017 with US$126bn in consolidated revenue and US$25bn in cash flow from operations.
"Verizon, the leader of the US mobile telephony market, has the financial capacity to acquire Telefónica's operations in Mexico," the report said, quoting analysts. The company already has a license to operate in the country, the report said.
Telefónica, the second largest mobile telecoms operator in Mexico, has been the subject of periodic speculation regarding the sale of all or parts of its North Hispam division, which includes Mexico, Central America as well as Colombia, Ecuador and Venezuela. The region is less profitable than the company overall, with a 21.7% Ebitda margin versus the company's global 33.3%.
In Mexico, Telefónica has been losing clients fast to both leading player América Móvil and to AT&T, which already surpasses it in terms of mobile broadband subscribers.
Being acquired by a large international player could help the company pick up the pace, Gonzalo Rojón of local telecoms consultancy The CIU was quoted as saying in the report.
The company has not commented on the market versions, while it recently bought new spectrum for advanced mobile telecommunications in the country. It has also complained about the country's competitive environment.
Mexico's government has said that the newly signed trade deal between Mexico, the US and Canada could help new telecommunications operators enter the local market.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: ICT (Mexico)
India's Zoho plans to expand footprint in Latin America
The software company will invest US$20mn in a new datacenter in Mexico, among other things.
E-commerce powerhouses betting big on LatAm warehouses
MercadoLibre announced over US$7bn in investments for Brazil and Mexico, the bulk going to distribution and logistics, while Singapore's Shopee is ...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: ICT (Mexico)
Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Oracle Data Center in Mexico (Cloud Region)
- Current stage:
- Updated:
6 months ago
- Project: Second data center for Cloud region
- Current stage:
- Updated:
6 months ago
- Project: Microsoft Cloud Services
- Current stage:
- Updated:
6 months ago
- Project: Zoho Data Center in Mexico
- Current stage:
- Updated:
6 months ago
- Project: Colón data center (QRO Campus)
- Current stage:
- Updated:
6 months ago
- Project: Submarine Cable Aurora
- Current stage:
- Updated:
7 months ago
- Project: Third KIO Data Center in Querétaro (KIO QRO 3)
- Current stage:
- Updated:
9 months ago
- Project: Mexico 2
- Current stage:
- Updated:
2 years ago
- Project: Mexico 1
- Current stage:
- Updated:
2 years ago
- Project: MX2 Data Center Expansion (Phase 2)
- Current stage:
- Updated:
2 years ago
Other companies in: ICT (Mexico)
Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Scitum, S.A. de C.V.  (Scitum)
-
Scitum S.A. de C.V. is a Mexican company controlled by Teléfonos de México S.A.B. of C.V. (Telmex) and Grupo Carso S.A.B. of C.V. The firm provides information security within L...
- Company: Grupo Condumex S.A. de C.V.  (Grupo Condumex)
-
Grupo Condumex S.A. de C.V., a subsidiary of Mexican conglomerate Grupo Carso, manufactures electrical conductors used mainly in the telecommunications, automotive and energy se...
- Company: Empresas Cablevisión S.A.B. de C.V.  (Izzi Telecom)
-
Empresas Cablevisión S.A.B. de C.V. (Izzi) is a Mexican single, double, and triple play service provider. It provides fixed telephony, Internet and cable TV services for residen...
- Company: Def Alliance, S. de R.L. de C.V.  (Def Alliance)
-
Def Alliance is a Mexican consulting company that provides services and solutions to the manufacturing, entertainment, transportation, mining, utilities, and health and safety s...
- Company: Samson Control S.A. de C.V.  (Samson Control México)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Schneider Electric Software Global Solutions  (Schneider Electric Systems Mexico, S. A. de C. V.)
-
Schneider Electric Mexico is a subsidiary of Schneider Electric SA, and is engaged in the development of technologies and solutions for energy management and automation. Its pro...
- Company: Altán Redes S.A.P.I. de C.V.  (Altán Redes)
-
Altán Redes, whose headquarters are located in Mexico City, is an international consortium created in 2016 to design, operate and maintain the Mexican telecommunication project ...
- Company: Ascenty México, S. de R.L. de C.V.  (Ascenty México)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...