Sky Brazil acquires MMDS operator to increase its LTE offer

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The DTH Sky Brazil has announced its intentions of purchasing Acom Comunicações, main MMDS Pay-TV operator in such country with presence in more than 50 municipalities. This acquisition will enable Sky to rely on 2.5 GHz spectrum, thus enabling it to widen its 4G (TD-LTE) broadband offer, which, so far, has been launched in the capital city of Brasilia – last year end – utilizing the frequencies of the MMDS acquired from ITSA in 2009.

According to the local media, with the acquisition of Acom – which works with the brand Jet TV – Sky will gain 2.5 GHz spectrum in more than 50 municipalities, distributed in 10 states, where Acom holds MMDS licensees. Such municipalities record about 13 million inhabitants. Such cities include the following: the metropolitan regions of Manaus, Natal, João Pessoa, Maceió, Aracaju, Cuiabá, Campo Grande, Ipatinga, Juiz de Fora, Campos and Santos, among others.

Sky has not disclosed the operation value, which is still pending of previous approval by the National Telecommunications Agency and the Economy Defense Administrating Council. Acom renders Pay-TV, broadband and VoIP services.

During the last months, MMDS systems have been losing market share in Brazil. As of November 2011 closing, such systems accounted for a 2% market share, according to information disclosed by the aforementioned agency. In November, Brazil recorded a total of 12,4 million households relying on Pay-TV services.

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