During the first half of 1999, Latin America handset sales exceeded 9.8 million, according to Dataquest, a U.S.-based market research firm. Handset sales were forecasted to reach 24.5 million units by the end of 1999. Ericsson, Motorola and Nokia accounted for 78 percent of all mobile handsets in Latin America. TDMA is the leading technology.
Brazil
Cia. Suzano de Papel e Celulose will sell most of a 28-percent stake in a mobile phone license in two Brazilian states. Suzano will reduce its holding to 5 percent, selling the rest to its partners, Japan’s DDI Corp., Motorola and Brazil’s Inepar, for US$93 million. The final 5 percent will be sold for US$12 million once ownership restrictions for the mobile phone concession expire.
SBC Communications said it agreed to increase its investment in conjunction with Telmex to 50 percent in Algar Telecom Leste. Financial terms of the agreement were not released. As part of the transaction, Williams Communications will reduce its stake to 50 percent. SBC and Telmex then will increase their stake, said SBC.
Chile
Leap Wireless said it changed the name of Chilesat PCS to Smartcom PCS. Additionally, the company said it may incorporate a partner into Smartcom PCS.
Mexico
Pegaso signed a memorandum of understanding with Sprint for the sale of a 30.5-percent stake for US$250 million. A definitive agreement is expected to be reached in first-quarter 2000. Pegaso currently is owned by Grupo Pegaso, Grupo Televisa SA de CV, Leap Wireless, Citicorp and Nissho Iwai. In addition, Leap Wireless said Pegaso launched service in Mexico City. Pegaso now has launched in four Mexican cities: Monterrey, Guadalajara, Tijuana and Mexico City.
Bell Atlantic said it had terminated discussions regarding a possible partnership between its Mexican cellular phone company, Nuevo Grupo Iusacell, and small wireless operators in the north.
Peru
BellSouth raised its ownership interest in Tele2000 to 89.581 percent from 75.47 percent. The company paid about US$167 million for the new shares.
