Motorola and SkyTel announced they have signed a memorandum of understanding to expand two-way wireless communications solutions to Latin America. In particular, SkyTel said it will make Motorola’s PageWriter 2000X two-way pager available in Latin American markets. The pagers previously were available only in the United States. At the same time, the two will develop and implement ReFLEX-based paging networks in the region.
Brazil
Portugal Telecom said it raised its interest in Telesp Celular Participacoes 4.5 percent to 19 percent at a cost of US$158.9 million.
U.S.-based SBC Communications said it completed its investment in Algar Telecom Leste (ATL), which serves customers in Rio de Janeiro and Espirito Santo states. Telefonos de Mexico joined SBC in the investment. The companies will acquire their combined stake in ATL from Algar Telecom. As part of the transaction, Williams Communications will reduce its stake to 50 percent. SBC and Telmex can increase their investment to 50 percent in 2004, under current Brazilian regulations.
Colombia
Millicom International Cellular said it completed its capital increase of US$7.7 million in Celcaribe, with an increase in equity ownership from 41.63 percent to 51.93 percent.
Ecuador
Telefonos de Mexico, Mexican telecom provider, signed a letter of intent to buy 60 percent of Consorcio Ecuatoriano de Telecomunicaciones, the leading wireless service provider in Ecuador, Reuters reported. Financial details were not released. The move follows Telmex’s announcement last year that it plans to expand its business outside Mexico.
Mexico
Unefon launched initial service in February in Toluca, a city outside Mexico City. The company plans to begin services in 20 cities during the next year and plans to go public by mid-2001. Unefon expects to have 1.5 million users within five years. Unefon is betting that its fixed wireless telephones will help fulfill demand for basic telephony services in Mexico, which has a low telephone density.
