Telefónica interested in acquiring Telemig, sources say

22 Jun 2007

Spanish telecoms giant Telefónica is said to be interested in purchasing Brazilian mobile operator Telemig Celular Participacoes to consolidate its Brazilian footprint, writes BNamericas citing people close to the situation. ‘Telefónica has been interested in Telemig for some time and if it is put up for sale, the company will be there to make an offer,’ the source said. The Brazilian firm is being sold off by its controlling shareholder and Oi (formerly Telemar) is already said to be studying an offer for the cellco.

According to TeleGeography’s GlobalComms database, the sister company of Amazônia Celular, Telemig Celular holds the Band A licence in Region IV (Minas Gerais). Originally a TDMA-only operator, in July 2004 it inked a USD100 million deal with Ericsson for GSM equipment and began migrating customers the following September; in May 2005 it announced it was abandoning TDMA handset sales altogether although it will still maintain the network. The company has around 3.4 million customers and reported revenues of USD616 million in 2006.

Brazil, Oi, Telefonica, Telemig Celular