MEXICO CITY-U.S.-based Williams Communications said it entered an agreement with America Movil, the wireless arm of Mexican telecom giant TelMex, to sell its 19-percent interest in Brazilian wireless provider Algar Telecom Leste (ATL) to America Movil. The financial terms of the transaction were not disclosed.
Williams was a founding investor in ATL, which began providing wireless service to the Brazilian region including Rio de Janeiro in January 1999. The carrier, owned 51 percent by Algar Telecom and 30 percent by Telecom Americas, had more than 1.63 million subscribers at the end of March.
The acquisition is the first for America Movil in Brazil’s lucrative mobile market. “With the acquisition of Williams’ interest in ATL, we will strengthen our participation in the Brazilian market and continue with our strategy and expansion program in Latin America,” said Daniel Hajj, America Movil chief executive officer.
Williams said the transaction provides it with additional liquidity and will allow the company to increase its focus on core broadband businesses.
