Tigo eyes potential acquisition targets, sees opportunities for mobile network launch

7 Feb 2017

In an interview with TeleSemana.com, Tigo Costa Rica’s head of corporate affairs, Norman Chaves, has confirmed that the company is considering acquisitions of several smaller companies, after the regulator blocked its takeover of TeleCable last year. The official was unable to reveal any further details, including the identities of the acquisition targets for the time being, however.

Regarding Tigo’s bid to enter the mobile sector, meanwhile, Mr Chaves explained that the cableco had opted not to participate in the 2011 tender – which had liberalised the cellular market – due to the levels of uncertainty at the time: ‘We were coming from a monopoly of more than 60 years [and] there were a number of infrastructure issues to be resolved, [such as] access to submarine cables, the establishment of base stations, etc.’ The market has now settled somewhat, prompting Tigo to analyse the possibility of breaking into the sector. Elaborating on the matter, Mr Chaves explained Tigo’s stance: ‘From our point of view, Costa Rica is a country in the process of maturity. The client better understands a promotion, a combo or a bundle of services, is more encouraged to study what is offered by one provider or another. We believe that there is an opportunity in that sense … and there is a possibility of capturing part of the market.’

Costa Rica, Millicom Cable Costa Rica (Tigo), Superintendencia de Telecomunicaciones (Sutel), Telecable Economico