Inter Acquisition Aims For Scale
Venezuelan pay-TV operator Inter has announced the acquisition of Chile-based pay-TV operator TuVes . Inter, which has around 21% of Venezuela's pay-TV market , will see its footprint expand to four new countries, rapidly building its position as a regional player. TuVes and Inter already had a distribution agreement from 2012 making the merger a logical step. BMI believes a stronger regional player will offer greater competition in Latin America's pay-TV sector.
A Venezuelan company investing outside its market is not a common occurrence. Fixed-line incumbent CANTV was considered a candidate for fellow incumbent CNT in Ecuador but there has been little additional action. Inter's more international outlook may come from its owners, which include US private equity firm HM Capital Partners and French incumbent France Telecom . Inter offers pay-TV services to around 700,000 subscribers, also packaging broadband and fixed-line options with its network reaching 1.2mn households.
TuVes offers pay-TV in Chile, Peru, Paraguay and Bolivia over satellite platforms . The company had high ambitions of reaching more markets in the region, but has not expanded further than its H111 exploration beyond Chile. Inter also offers pay-TV services using satellite technology.