SAN JUAN — Liberty Latin America (LLA) reached an agreement to buy Dish Networks’ spectrum and customer base in Puerto Rico and the U.S, Virgin Islands (USVI) for $256 million.
The deal is pending regulatory approvals and is expected to be completed in 2024, Liberty said in a release.
According to the company, the transaction adds 120,000 prepaid mobile subscribers and a mix of low, mid, and high band frequencies to its operations in the two markets.
The total amount will be paid in four annual installments, starting on the closing date, and funded with local liquidity sources, including cash, cash generated from operations, cash generated from asset sales, and/or revolving credit facilities, according to the release.
“This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing Dish with additional capital to focus on our wireless business in the United States,” Dish Netwoks’ VP of corporate development, Tom Cullen, said.
Liberty Latin America entered the Puerto Rican and USVI mobile markets in October 2020 after closing the acquisition of AT&T’s local operations.
In December 2021, Liberty also acquired 96% of the outstanding shares of Broadband VI for US$33mn.
Liberty Puerto Rico is LLA’s subsidiary for both Puerto Rico and the USVI, although the bulk of the business is in the former.
The subsidiary accounted for 15% of LLA’s total revenue in Q2, representing its main retail telecom operation.
Liberty Puerto Rico posted US$352mn in revenues in the quarter, down 3% year-over-year, and US$718mn in H1, with the mobile business accounting for 46% of the latter.
In mobile, Liberty Puerto Rico competes with T-Mobile and América Móvil’s Claro.
The telco has been focused on its 5G build-out in the U.S, territory.
“In Puerto Rico, our new 5G mobile core and IP stack are operational. We’ve already migrated 35,000 prepaid customers [to 5G plans], a quarter of the base, and we are starting to migrate postpaid customers,” CEO Balan Nair told investors in a Q2 earnings call.
Liberty Latin America is due to release its Q3 results on Thursday.