Tigo must deploy HFC ahead of Caribeña buyout
Superintendencia de Competencia, the competition authority in El Salvador, has asked Tigo subsidiary Telemóvil to comply with a number of conditions before approving its Caribeña acquisition.
In order to improve local cable company Caribeña’s pay-TV offering and service quality across the east of El Salvador, one condition includes the deployment of a hybrid fibre network (HFC) in line with what Tigo offer in other parts of the country.
Another is that Tigo cannot obstruct users’ ability to change pay-TV providers and are not allowed to sell any services that would give its products advantage over its competitors.
Tigo are also not permitted to impose unreasonable price increases or reduce services and they must directly inform their clients about this deal.
The competition authority has also confirmed that they will monitor the new company, in order to regulate competition.
Once the deal has been green lit, its set to strengthen competition in other markets.