MEXICO CITY-Telefonos de Mexico and Bell Canada International announced they will form a new company with an initial capitalization of US$3.5 billion to target the South American market.
Telmex and BCI will hold equal interests in the venture.
The companies offered SBC Communications the right to purchase up to a 25-percent interest via contributions of assets and cash. SBC said it intends to participate in the company.
“We believe this is a great opportunity to employ our Latin America assets more strategically and efficiently,” explained Jim Kahan, senior vice president of corporate development for SBC.
SBC will initially contribute its interest in the region to ATL, a Brazilian wireless company, and expects to hold a 12-percent initial economic interest in the venture, subject to final adjustments at the time of closing.
Telmex and BCI said network development initially will be concentrated in Brazil, Colombia and Venezuela. The new enterprise will aim to capture the broadband, mobile wireless and Internet opportunities through networks on both fixed and mobile platforms.
