European telco Millicom, which operates under the brand name of Tigo in Latin America, is set for a significant expansion in Costa Rica, with the country’s regulator approving its plans to acquire two local cable operators.
The watchdog reportedly said that the purchase of Cable Television Doble R (Cable Max) and Cable Zarcero would not adversely affect customers.
The approval comes barely a month after Millicom raised US$50 million from IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, saying it would bolster its telecom networks across Latin America.
Tigo has now agreed to provide both pay-TV and broadband services in Costa Rica pitting the company directly against Claro, a unit of Mexican telecom giant America Movil, and Liberty Latin America, which has only recently bulked up in the country by acquiring an 80% stake in Cabletica.
Last year, Tigo collaborated with entertainment technology firm TiVo to launch One TV, its technology platform to provide pay-TV services, a service which is already being offered in Colombia. Reports say it will soon roll out the service to other Latin American countries including Paraguay and Bolivia.