Exec: No Iusacell-Unefon Merger for at Least 6mths

Mexican mobile operators Iusacell and Unefon will not finalize their planned merger for at least another six months, Iusacell's director of third generation applications Gustavo Guevara told local daily Milenio.

"I hope we will be working together within the next six months to a year," he said.

Iusacell and Unefon are the only two Mexican mobile operators that use CDMA technology and have been sharing each other's networks. The companies said in July they would merge.

Iusacell recently signed an agreement with US telecom Sprint Nextel to offer broadband roaming in the US for its Mexican subscriber base.

The roaming services will use CDMA2000 1xEV-DO technology to provide internet and email access. They will also be available for Iusacell clients with wireless broadband cards for computers, BNamericas reported previously.

Both companies will also stand to gain from the Calling Party Pays (CPP) long distance calling system that was introduced on November 4 and in which interconnection fees for long distance calls made from fixed line phones to mobiles are shared between the sending and receiving parties.

Previously, the mobile-bearing receiving party paid the entire interconnection fee.

Iusacell saw its third quarter net loss narrow 62% to 107mn pesos (US$10mn) compared to the same period in 2005, while Unefon posted a profit of 107mn pesos in the third quarter compared to a loss of the same amount in 3Q05.

BNAmericas.com"

Posted to the site on 5th December 2006