Millicom momentum in LATAM driven by DTH, UNE
Juan Fernandez Gonzalez
| 25 October 2014
Two facts seem to be behind Millicom's strong growth in Latin America: the launch of its direct-to-home (DTH) operation in Central America and Bolivia, and the consolidation of its merger with UNE in Colombia.
Through becoming a strategic ally of UNE, controlling the company's moves from now on, Millicom has gained a top position in the Colombian telecom market. The Colombian telco contributed with revenue of $186 million incomes - $126 million gross profit - driving the Swedish company to increase revenues to nearly $1.7 billion.
Although most of Millicom's operations are still focused on mobile business, pay-TV has been gaining importance since the beginning of the year.
The telco launched a DTH platform in June, which is currently operating in Costa Rica, Honduras, El Salvador, Guatemala and Bolivia, gathering 45,000 subs in one quarter. Tigo Millicom's satellite TV has found great acceptance in Costa Rica, with 12,000 new clients since last June.
It has been a momentous quarter with the completion of the merger with UNE, which has made a very solid contribution, said Hans-Holger Albrecht, the company's president and CEO.
We are continuing the transformation of the company with the promotion of mobile data services with smart-apps in Latin America and Tigo Star is now offering satellite pay-TV, making it available to tens of million of people in rural areas and complementing our cable services.