Things are heating up in Brazil over broadband as America Movil has publically announced studying the possibility of streamlining its Brazilian operations by merging its cable TV operations with its fixed and mobile carriers. According to America Movil the move could be the best way to gain ground in the hotly competitive Brazilian communications market.
While nothing is set in stone, the plan would structurally integrate Embratel Participacoes, the country’s 3rd-largest wire-line telecom, with mobile operator Telecom Americas, and cable TV operator Net Servicos de Comunicacao. Before the merger is taken to the next phase, however, the companies must carefully look at their options, and no deal has been made yet.
Last year, Mexico’s America Movil blew away the pay-TV competition in Latin America by merging all of its regional operators (Net Servicos, Telmex, Telmex International) to create one solid entity. In doing so, they have swallowed up the competition, holding 22 percent of the regions 51 million subscribers, making it the leader on the continent.
A similar move was made successfully last year by Telefonica, who merged their mobile and fixed-line divisions in Brazil into one single unit.
Many suspect that this may have been inspired by America Movil’s 2012 4th quarter revenue dip. Which was a bit less than previous gains, holding at USD $ 16.2 million. With this new announcement, America Movil plans on kick-starting their Brazilian revenue stream by reorganizing its sources, and making the overall market value more efficient.
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