KDDI expands US footprint with $42m MVNO deals

Nicole McCormick | February 10, 2010

telecomasia.net

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Japanese cellco KDDI is expanding its presence in the competitive US market, announcing plans to buy controlling stakes in two US MVNOs for a total of 3.7 billion yen ($41.14m).

KDDI America will acquire a 51% stake in New Jersey-based Locus Telecommunications, an MVNO targeting immigrants from Mexico and South Korea.

The unit will also purchase 51% of California-based MVNO Total Call Mobile, whose target market is Guatemalan immigrants.

The MVNOs have a combined 300,000 mobile customers, said TMCnet.com.

The deals are due to be completed by end-March.

In 2004, Locus launched two national CDMA prepaid wireless brands - VIVAPrepaid Wireless and Locus Platinum.

In 2005, Locus became the first US MVNO to launch prepaid GSM services to independent distributors nationwide, under the brands CallPlus Wireless GSM, Locus Mobile GSM, O2 Wireless GSM and POP.

Meanwhile, Total Call Mobile offers low-cost prepaid and postpaid voice/data services using the network of Sprint Nextel. The company is an affiliate of Total Call International.

For its part, KDDI has run a US MVNO, aimed at Japanese residents living in the US, since April 2007. The service is delivered over Sprint Nextel’s network.

Source:

telecomasia.net

Nicole McCormick

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