Unefon spin-off gets OK from TV Azteca

23 Dec 2003

Plans for Mexican broadcast operation TV Azteca to spin off its 46.5% stake in mobile phone operator Unefon and its 50% holding in broadband provider Cosmofrecuencies have received an overwhelming thumbs up from Azteca shareholders. The spin-off will create a new entity Unefon Holdings, which it is hoped will separate out the group’s media assets from its more unstable telecom stocks. Unefon is struggling to compete with its larger rivals Telcel and Telefónica Móviles Mexico and has focused its efforts on niche market customers. However, despite having 1.8 million subscribers at the end of September 2003 its future looks uncertain due to a lack of resources, technology and high levels of debt.