Tigo/TeleCable merger shot down by Sutel

30 Apr 2015

The planned merger of Costa Rican cable provider Tigo Costa Rica and locally-owned cable operator TeleCable Economico has been blocked by sector regulator Superintendencia de Telecomunicaciones (Sutel), Tigo’s parent company, Millicom International Cellular (MIC), announced in a statement. The duo are the second and fourth largest broadband providers in the country by subscribers at the end of 2014 according to TeleGeography’s GlobalComms Database, representing 23.7% and 8.5% of the market respectively at that date, well behind the 49.0% claimed by the state-owned incumbent ICE (Kolbi). The merger was agreed by the two companies in December 2014, but further details of the deal were not made public. No reason for Sutel’s rejection was given and MIC says it is now considering its options, including appealing the decision.

Costa Rica, Millicom Cable Costa Rica (Tigo), Telecable Economico