The British Telecom Plc (BT) has sold some of its telecom assets in Latin America to CIH Telecommunications. Neither company has disclosed the financial details of the deal.
The divested business includes a 650 km fiber network, 2,000 kilometers of leased fiber lines, four data centers, and five teleports.
These assets generated US$127 million in revenue during the last fiscal year, according to the Brazilian press. Analysts say CIH Telecommunications might have paid more than US$1 billion for the assets.
The BT will, however, continue to offer networking services, cloud, and security solutions in 21 countries in the region.
With the telecom market becoming saturated everywhere in the world, BT appears to focus on new technology services such as cloud computing. Last year, BT reached a deal with Portobello Capital to sell its Spanish managed ICT services business, including its domestic network infrastructure.
“Today’s announcement is a key milestone in the execution of our strategy to become a more agile and focused business. It comes at a particularly challenging time for the global economy,” said Bas Burger, CEO of Global at BT.
As per the deal, CIA telecommunications will act as a reseller for BT’s products and services in the region in addition to providing domestic connectivity services to the British carrier.