By The Star Staff
Liberty Latin America (LLA) has completed a $255 million acquisition of spectrum assets from EchoStar in Puerto Rico and the U.S. Virgin Islands (USVI).
The acquisition also includes close to 85,000 pre-paid mobile subscribers, LLA said in a statement.
The deal was given the go-ahead following a review by the U.S. Department of Justice Antitrust Division and approval by the Federal Communications Commission.
LLA will pay $255 million for the assets in four installments, with the first installment of $95 million paid on the closing of the deal.
The transaction will be funded through local liquidity sources, including cash on hand, cash generated from operations, and/or revolving credit facilities, LLA said.
The carrier first struck the deal with struggling EchoStar in November of last year.
“Our strong commitment to Puerto Rico and the USVI is reflected in this deal,” said Balan Nair, president & CEO of Liberty Latin America. “By acquiring over 100 MHz [megahertz] of spectrum, approximately 85,000 pre-paid subscribers, and an extensive distribution network we have a tremendous opportunity to leverage our full-service products to drive fixed-mobile convergence penetration from current levels of around 25 percent.”
“As we ramp up our commercial efforts, there is significant room for growth, and these assets will enable us to add more capacity, increase speeds, further strengthen our 5G mobile network, and grow our scale in the prepaid market,” Nair added.
EchoStar will use the proceeds from the sale to reduce debts.
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