GO-ing, going, gone; VelaTel announces sale of Peruvian unit

27 Mar 2013

US-based firm VelaTel has announced that it has engaged a broker to explore options for the sale of its Peruvian WiMAX unit VelaTel Peru, which operates under the GO Movil brand, including an equity sale and the sale of the telco’s component assets. VelaTel said in a statement that the telco was underperforming, with subscriber growth falling short of the group’s other units. The scarcity and cost of spectrum in Peru, the need to upgrade to Long Term Evolution (LTE) to remain competitive along with the length of time required to recoup its existing investment, and the further spending needed to sustain operations until the unit becomes cash flow positive, prompted the decision to offload the subsidiary, the statement added.

Peru, GO Movil (Formerly Perusat), VelaTel Global Communications (formerly ChinaTel)