Cash-strapped Vox to be absorbed by Copaco

8 Jan 2020

Paraguayan state-owned fixed line operator Copaco will merge with its mobile unit Vox later this year in an effort to stop the cellco from ‘bleeding’ the telco’s finances. The transaction – which has been described as ‘a merger by absorption’ – was revealed to local news site ABC Color by Elvio Brizuela, head of the General Directorate of Public Companies. The official, who works for the Ministry of Finance, told journalists: ‘[Vox] is going to become a dealer, a sales agent for the services – nothing more. Its entire operating system will disappear, it will go to Copaco; everything is going to be integrated.’ As per the article, the merger will be submitted to the General Council for approval in February.

According to TeleGeography’s GlobalComms Database, Copaco acquired Vox (legal name: Hola Paraguay) from Japanese firms KDDI and Toyotoshi Holding Corp back in 2010, abandoning its own planned mobile launch in the process. However, the cellco has struggled to gain traction against international rivals Tigo, Personal and Claro and served less than 5% of the mobile market as of 30 September 2019.

Paraguay, Copaco, Hola Paraguay (Vox)