Digicel and Claro Merger Would Release Frequencies

The government of El Salvador requires the renunciation of the spectrums assigned to both companies individually, to avoid limiting competition.

Tuesday, September 6, 2011

The resolution by the Superintendency of Competition requires America Movil (Claro)"... give up some of the radio spectrum it has been assigned. This spectrum will be used by new competitors creating more competition and therefore consumer benefits".

On compliance with this requirement the company Claro will get authorization for the merger with Digicel.

More details of the final resolution can be found in the document from the Superintendency of Competition:

http://www.sc.gob.sv/uploads/SC-016-SCR-2011_300811_1330.pdf

More on this topic

El Salvador: Claro Requests Purchase of Digicel Be Unconditional

September 2011

Claro has asked the Superintendency to revoke its prior decision and "to consent without conditions to its consolidation operations."

The condition that Claro opposes, is the renouncement before the Superintendency of Electricity and Telecommunications (SIGET), of its right to operate 20 MHz of the total Salvadoran radio electric spectrum it has.

America Movil Appeal Dismissed

October 2011

The Mexican company will not be able to merge with Digicel unless it agrees to a condition to renouncen the use of 20 MHz of airwaves.

Regarding the ruling by Superintendencia de Competencia (SC), Daniel Choto writes in Elsalvador.com, "The reason for this precondition to allowing the merger of the operations of both companies is to maintain the current level of competition in the field of mobile phone companies in order to protect consumers' pockets, said the head of the SC, Francisco Diaz Rodriguez. "

El Salvador: Claro Cancels Purchase of Digicel

October 2012

After the competition regulator imposed the release of part of the spectrum leased by Claro as a condition to the merger between the two companies, America Movil has announced its withdrawal from the move.

In March last year, America Movil announced an agreement to acquire a 100% stake of Digicel El Salvador, for an undisclosed amount.

Claro Submits New Application for Purchase of Digicel

April 2012

Claro has submitted a new request to the Superintendency of Competition (SC) in El Salvador for authorization to buy Digicel.

The SC has received a new request for authorization of economic concentration on the part of America Movil, owner of the Claro brand, to purchase all the shares belonging to Digicel.

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