MEXICO CITY-U.K.-based Vodafone Group purchased a 34.5-percent stake in Iusacell, Mexico’s second-largest mobile operator, in an effort to expand into the Latin American wireless market, according to international press reports. The US$973.4 million purchase was made from Grupo Peralta, the firm that introduced Mexico City to mobile phones in 1989.
The deal, which is expected to be complete in the first quarter of this year, furthers Vodafone’s relationship with Verizon Communications, which owns a 37-percent stake in Iusacell. Verizon and Vodafone are joint owners of Verizon Wireless, the largest wireless phone company in the United States.
The purchase increases competition between Iusacell and Telefonos de Mexico (Telmex), Mexico’s dominant carrier. Telmex leads Iusacell with 8.9 million subscribers. Presently, Iusacell has more than 1.5 million subscribers, but according to the reports, leads the market in state-of-the-art digital coverage and is well positioned to compete in the higher-end business market.
