AT&T was also keen to stress that the sale won’t impact its commitment to the FirstNet public safety network, pay-TV business DirecTV and some global business customer relationships. Liberty Latin America, meanwhile, confirmed that it has agreed to continue providing high-quality communications services to the people of Puerto Rico and the US Virgin Islands, including 5G technology, and to support AT&T as it builds out its FirstNet network in the two markets. The former Liberty Global unit is present in over 20 countries across Latin America and the Caribbean and is already the largest pay-TV and broadband provider on Puerto Rico.
Previous reports suggested AT&T was looking to raise closer to USD 3 billion for its Puerto Rican assets but the complexity of the unit slowed negotiations, according to an unnamed source cited by the Wall Street Journal. The island’s infrastructure was heavily damaged by Hurricane Maria in 2017 and the fact thousands of residents spend several months out of the year on the US mainland made it difficult to count subscribers.
In its statement, AT&T said the deal is part of an ongoing strategic review of its balance sheet and assets to identify opportunities for monetisation. The transaction will help it pare down a debt load accumulated following its USD 80 billion-plus acquisition of Time Warner last year, with the company also reportedly looking to divest towers in the US and Mexico and sell of its regional sports networks after offloading office space in New York City for USD 2.2 billion in June.
