Is American Movil Eyeing Solavei/US Cellular?

With a subscribership nearing 25 million people, America Movil is no longer a little player in the wireless game. With nearly as many subscribers as T-Mobile, America Movil is scooping up MVNO’s as quickly as they can. With a portfolio that already includes the TracFone brand, Net10 Wireless, SafeLink Wireless, Straight Talk, Simple Mobile and TelCel America, AM appears to be searching for their next takeover. With the recent T-Mobile acquisition of  MetroPCS and the AT&T buyout of Cricket, AM might just be eyeing the new kid in town – Solavei.

Solavei came on the scene almost a year ago and has a member count nearing 100,000 members. Official company numbers put the membership nearing 150,000, but those numbers were not able to be verified. Known for their ‘share and earn’ philosophy, Solavei has reached the point where an acquisition may make sense for a mid-range MVNO. Since a solid third to half of America Movil’s users are already on the T-Mobile network, acquiring Solavei would only add to their holdings and allow them to quickly increase their user base.

The other name that is surrounding America Movil in buyout rumors is US Cellular. Although the 5 million users of the US Cellular network may come at a cost, the network and spectrum that would be acquired by AM would make the move a very profitable one. It appears that US Cellular is in a bit of a quandary as what to do next as recent plans included dumping their non-renewal handset programs and a few other consumer perks in the last few months. Since the November 2012 sale of a few markets to Sprint, operations for US Cellular have been far from great.

Overall, either move would start to grow an already large carrier into a much larger carrier. Hopefully we will continue to see aggressive pricing from America Movil and their MVNO offerings. Requests for comments were not returned by America Movil, Solavei or US Cellular.

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