VTR and Claro Chile form new joint company JV

Liberty Latin America and América Móvil announced the merger of their Chilean operations, VTR and Claro Chile, to form the joint company JV, which will operate under 50/50 management. The main objective of the union, according to the companies, is to unify VTR’s broadband and pay TV users with Claro’s 6.5 million mobile clients.

After the pandemic, VTR lost its leadership in fixed broadband due to the advent of FTTH, although it remained as the leading pay TV operator in the country, with 1.068.900 subscribers in Q2 2021. For its part, Claro was in fourth place with 370 thousand since 2019.

On the other hand, the statement also maintains that the merger seeks to create a business with greater scale, product diversification, and a capital structure that will enable significant investment for fixed fiber footprint expansion and to be at the forefront of 5G mobile delivery”.

Regarding their speculations regarding the future, the document estimates: “By 2025, the JV anticipates passing 6 million homes through its fixed network and the majority will have access to FTTH infrastructure”. Finally, it adds: “The parties expect the JV to develop additional revenue streams through cross-selling opportunities and scale“.