A major Brazilian cable firm is to be assimilated into the operations of one of Latin America’s most prominent players. Net Servicos de Comunicacao will become part of America Movil’s offering, joining its fixed-line and mobile operations in Brazil.
The cable firm was previously under the control of Brazil’s leading broadcaster, Globo Comunicacao e Participacoes. Following approval from Brazilian regulator Anatel, America Movil will assume control of the firm. The operator already owns 92% of the cable firm’s stock.
A law passed last year by the Brazilian government necessitated the transaction by banning broadcaster from controlling communications firms; the same law also revised previous restrictions preventing foreign firms to take control over cable carriers. Globo and America Movil arranged the transfer of control after the law was passed.
America Movil is one of Latin America’s largest operators, and among the markets it covers Brazil is second only to its native Mexico in terms of subscriber numbers. It controls Claro - the number three operator in Brazil with around 60.4 million mobile subscribers - as well as fixed-line firm Embratel – these firms have now been combined with Net Servicos de Comunicacao.
