Liberty Latin America (LLA) has struck a deal with Dish Network to acquire Dish’s spectrum assets in Puerto Rico and the US Virgin Islands (USVI) for US$256 million in cash, as well as international roaming credits.
Vivek Khemka, Senior VP of LLA, said the deal will help it to optimize serviced for its mobile customers in Puerto Rico and the US Virgin Islands.
“Upon completion of the spectrum acquisition, we will have valuable low, mid, and high band spectrum that will allow us to add more capacity, increase speeds, and further strengthen our leading 5G mobile network,” Khemka said.
Under the deal, LLA will also take over Dish’s 120,000 Boost Mobile prepaid subscribers in those markets. Khemka said this would increase LLA’s scale in the prepaid market and expand its sales channels.
Tom Cullen, Dish Network’s EVP of corporate development, said the deal would provide Dish with additional capital to focus on its wireless business in the US.”
LLA says it will pay the $256 million in four annual instalments, and expects to fund the transaction “through local liquidity sources, including cash on hand, cash generated from operations, cash generated from asset sales, and/or revolving credit facilities.”
The transaction is expected to close next year, subject to closing conditions and regulatory approvals.