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LIBERTY LATIN AMERICA COMPLETES ACQUISITION OF ECHOSTAR’S MOBILE SPECTRUM AND PRE-PAID SUBSCRIBERS IN PUERTO RICO AND THE USVI

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Liberty Latin America (NASDAQ: LILA and LILAK) has completed the acquisition of EchoStar's spectrum assets and approximately 85,000 pre-paid mobile subscribers in Puerto Rico and the USVI for $255 million. The deal, approved by regulatory authorities, aims to enhance competition in the region. The payment will be made in four annual installments, with the first $95 million paid at closing. Liberty Latin America plans to fund the transaction through local liquidity sources.

CEO Balan Nair emphasized the company's commitment to Puerto Rico and the USVI, highlighting the acquisition of over 100 MHz of spectrum and an extensive distribution network. This move is expected to drive fixed-mobile convergence penetration from current levels of around 25%, increase capacity, boost speeds, strengthen the 5G mobile network, and expand the company's presence in the prepaid market.

Liberty Latin America (NASDAQ: LILA e LILAK) ha completato l'acquisizione degli asset di spettro di EchoStar e di circa 85.000 abbonati mobili prepagati a Porto Rico e nelle Isole Vergini americane per 255 milioni di dollari. L'accordo, approvato dalle autorità di regolamentazione, mira a migliorare la competitività nella regione. Il pagamento sarà effettuato in quattro rate annuali, con i primi 95 milioni pagati al momento della conclusione. Liberty Latin America prevede di finanziare la transazione attraverso fonti di liquidità locali.

Il CEO Balan Nair ha sottolineato l'impegno dell'azienda verso Porto Rico e le Isole Vergini americane, mettendo in evidenza l'acquisizione di oltre 100 MHz di spettro e una rete di distribuzione estesa. Questa mossa dovrebbe favorire la penetrazione della convergenza fisso-mobile dai livelli attuali di circa il 25%, aumentare la capacità, migliorare le velocità, rafforzare la rete mobile 5G e ampliare la presenza dell'azienda nel mercato prepagato.

Liberty Latin America (NASDAQ: LILA y LILAK) ha completado la adquisición de los activos de espectro de EchoStar y aproximadamente 85,000 suscriptores móviles prepagados en Puerto Rico y las Islas Vírgenes de EE. UU. por 255 millones de dólares. El acuerdo, aprobado por las autoridades regulatorias, busca mejorar la competencia en la región. El pago se realizará en cuatro cuotas anuales, siendo los primeros 95 millones pagados al cierre. Liberty Latin America planea financiar la transacción a través de fuentes de liquidez locales.

El CEO Balan Nair enfatizó el compromiso de la compañía con Puerto Rico y las Islas Vírgenes de EE. UU., destacando la adquisición de más de 100 MHz de espectro y una extensa red de distribución. Se espera que este movimiento impulse la penetración de la convergencia fija-móvil desde los niveles actuales de alrededor del 25%, aumente la capacidad, mejore las velocidades, fortalezca la red móvil 5G y amplíe la presencia de la compañía en el mercado de prepago.

리버티 라틴 아메리카 (NASDAQ: LILA 및 LILAK)는 에코스타의 스펙트럼 자산과 푸에르토 리코 및 미국령 버진 아일랜드의 약 85,000명의 선불 모바일 가입자를 인수하였습니다. 이 거래는 규제 당국의 승인을 받았으며, 지역 내 경쟁을 향상시키기 위해 고안되었습니다. 지불은 4개의 연간 분할 지불로 이루어지며, 첫 번째 9,500만 달러는 거래 종료 시 지급됩니다. 리버티 라틴 아메리카는 현지 유동성 자원을 통해 거래를 자금 조달할 계획입니다.

CEO 발란 내어는 회사의 푸에르토 리코 및 미국령 버진 아일랜드에 대한 헌신을 강조하며, 100MHz 이상의 스펙트럼과 광범위한 배급망을 인수한 것을 언급했습니다. 이러한 조치는 고정-모바일 융합 침투를 촉진할 것으로 예상되며, 현재 약 25% 수준에서 증가하고, 용량을 늘리며, 속도를 향상시키고, 5G 모바일 네트워크를 강화하고, 선불 시장에서의 회사의 입지를 확대할 것입니다.

Liberty Latin America (NASDAQ: LILA et LILAK) a achevé l'acquisition des actifs de spectre d'EchoStar et d'environ 85 000 abonnés mobiles prépayés à Porto Rico et aux Îles Vierges américaines pour 255 millions de dollars. L'accord, approuvé par les autorités réglementaires, vise à améliorer la concurrence dans la région. Le paiement sera effectué en quatre versements annuels, le premier de 95 millions de dollars étant versé à la clôture. Liberty Latin America prévoit de financer la transaction par le biais de sources de liquidité locales.

Le PDG Balan Nair a souligné l'engagement de l'entreprise envers Porto Rico et les Îles Vierges américaines, mettant en avant l'acquisition de plus de 100 MHz de spectre et un vaste réseau de distribution. Ce mouvement devrait favoriser la pénétration de la convergence fixe-mobile à partir des niveaux actuels d'environ 25%, augmenter la capacité, améliorer les vitesses, renforcer le réseau mobile 5G et étendre la présence de l'entreprise sur le marché prépayé.

Liberty Latin America (NASDAQ: LILA und LILAK) hat den Erwerb von EchoStars Spektrumvermögen und etwa 85.000 Prepaid-Mobilkunden in Puerto Rico und den US Virgin Islands abgeschlossen für 255 Millionen Dollar. Der Deal, der von den Regulierungsbehörden genehmigt wurde, zielt darauf ab, den Wettbewerb in der Region zu stärken. Die Zahlung erfolgt in vier jährlichen Raten, wobei die ersten 95 Millionen bei Abschluss fällig sind. Liberty Latin America plant, die Transaktion über lokale Liquiditätsquellen zu finanzieren.

CEO Balan Nair betonte das Engagement des Unternehmens für Puerto Rico und die US Virgin Islands und hob den Erwerb von über 100 MHz Spektrum sowie ein umfangreiches Vertriebsnetz hervor. Diese Maßnahme wird voraussichtlich die Penetration der Festnetz-Mobilfusion vorantreiben, die derzeit bei etwa 25% liegt, die Kapazität erhöhen, die Geschwindigkeiten steigern, das 5G-Mobilfunknetz stärken und die Präsenz des Unternehmens im Prepaid-Markt ausweiten.

Positive
  • Acquisition of over 100 MHz of spectrum and 85,000 pre-paid subscribers
  • Potential to drive fixed-mobile convergence penetration from 25%
  • Opportunity to increase capacity, speeds, and strengthen 5G network
  • Expansion in the prepaid market
  • Acquisition expected to enhance competition in Puerto Rico and USVI
Negative
  • Total acquisition cost of $255 million to be paid in installments
  • Potential financial strain due to multiple payment installments

Insights

The $255 million acquisition of EchoStar's spectrum assets and pre-paid subscribers by Liberty Latin America is a strategic move to enhance its market position in Puerto Rico and the USVI. The $95 million initial payment, with the remainder spread over four years, allows for financial flexibility. This deal is expected to boost Liberty's competitive edge in the region, particularly in the 5G and prepaid markets.

The acquisition of over 100 MHz of spectrum and 85,000 pre-paid subscribers provides Liberty with immediate scale and infrastructure to expand its services. The potential to increase fixed-mobile convergence penetration from 25% suggests significant revenue growth opportunities. However, investors should monitor the company's ability to integrate these assets effectively and capitalize on the expected synergies.

This acquisition marks a significant shift in the competitive landscape of Puerto Rico and the USVI's telecom market. The addition of substantial spectrum assets will enable Liberty Latin America to enhance its 5G capabilities, potentially leapfrogging competitors in network quality and coverage. The 85,000 pre-paid subscribers also provide an immediate boost to Liberty's market share in a segment that often serves as an entry point for price-sensitive customers.

The extensive distribution network acquired is a key asset, offering Liberty increased visibility and customer touchpoints. This could lead to reduced customer acquisition costs and improved market penetration. The challenge lies in effectively integrating these assets and leveraging them to drive growth in both prepaid and postpaid segments while managing potential regulatory scrutiny in a consolidating market.

DENVER, Colorado--(BUSINESS WIRE)-- Liberty Latin America Ltd. (“Liberty Latin America” or the “Company”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) announced today that it has closed the transaction to acquire EchoStar’s (SATS) spectrum assets in Puerto Rico and the USVI as well as approximately 85,000 pre-paid mobile subscribers. This follows a review by the United States Department of Justice Antitrust Division and the approval by the Federal Communications Commission, which noted in its approval on August 9, 2024, that public interest benefits are likely to be realized as a result of the transaction, such as enhanced competition in Puerto Rico and the USVI.

The aggregate asset purchase price of $255 million will be paid in four annual installments commencing on the closing date, with the first installment of $95 million having been paid today. Liberty Latin America expects to fund the transaction through local liquidity sources, including cash on hand, cash generated from operations, and/or revolving credit facilities.

Commenting on the acquisition, Balan Nair, President and CEO of Liberty Latin America, said, “Our strong commitment to Puerto Rico and the USVI is reflected in this deal. By acquiring over 100 MHz 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%. 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.”

ABOUT LIBERTY LATIN AMERICA

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands BTC, Flow, Liberty and Más Móvil, and through ClaroVTR, our joint venture in Chile. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony, and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region.

Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).

For more information, please visit www.lla.com.

Investor Relations:

Kunal Patel: ir@lla.com

Media Relations:

Kim Larson: llacommunications@lla.com

Source: Liberty Latin America Ltd.

FAQ

What assets did Liberty Latin America acquire from EchoStar in Puerto Rico and USVI?

Liberty Latin America acquired over 100 MHz of spectrum, approximately 85,000 pre-paid mobile subscribers, and an extensive distribution network from EchoStar in Puerto Rico and the USVI.

How much did Liberty Latin America pay for the EchoStar assets?

The aggregate asset purchase price is $255 million, to be paid in four annual installments. The first installment of $95 million was paid at closing.

How does Liberty Latin America plan to fund the EchoStar asset acquisition?

Liberty Latin America expects to fund the transaction through local liquidity sources, including cash on hand, cash generated from operations, and/or revolving credit facilities.

What is the current fixed-mobile convergence penetration level for Liberty Latin America in Puerto Rico and USVI?

The current fixed-mobile convergence penetration level is around 25%, with Liberty Latin America seeing significant room for growth following the acquisition.

How will the EchoStar asset acquisition affect Liberty Latin America's 5G network?

The acquisition is expected to enable Liberty Latin America to add more capacity, increase speeds, and further strengthen its 5G mobile network in Puerto Rico and the USVI.

Liberty Latin America Ltd. Class C

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