Liberty Latin America (LLA) announced that it has closed the transaction to acquire EchoStar's (SATS) spectrum assets in Puerto Rico and the US Virgin Islands (USVI), as well as approximately 85,000 pre-paid mobile subscribers. The transaction, valued at USD 255 million, received approval from the US Department of Justice (DOJ) and the Federal Communications Commission (FCC). The FCC noted in its approval on August 9, 2024, that the expected public interest benefits include increased competition in Puerto Rico and the USVI.
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Transaction Details
LLA said it paid the first instalment of USD 95 million on September 4, the date of the deal's closing, with the remaining amount to be paid in three annual instalments. The company plans to finance the deal through local liquidity sources, including cash on hand and operational cash flow. The carrier first struck the deal with EchoStar in November of last year.
Commenting on the acquisition, Liberty Latin America said, "By acquiring over 100 MHz of spectrum, approximately 85,000 pre-paid subscribers, and an extensive distribution network, we have a tremendous opportunity to leverage our full-service products to drive fixed-mobile convergence penetration from current levels of around 25 percent."
"As we ramp up our commercial efforts, there is significant room for growth. These assets will enable us to add more capacity, increase speeds, further strengthen our 5G mobile network, and grow our scale in the prepaid market," LLA added.
At the time of the announcement in November 2023, EchoStar's Dish Network said, "This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing DISH with additional capital to focus on our wireless business in the United States."
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Liberty Latin America
Liberty Latin America is a communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands BTC, Flow, Liberty and Mas Movil, and through ClaroVTR, a joint venture in Chile. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region.
