Mexico's Inflation Forces Grupo Iusacell to Raise Rates
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January 23, 1996
MEXICO'S INFLATION FORCES GRUPO IUSACELL TO RAISE
MEXICO CITY -- Grupo Iusacell, S.A. de C.V. (NYSE: CEL CEL.D)
announced today that it has registered an average cellular tariff
30% with the SCT (The Secretariat of Communications and Transport). The
increase will go into effect at months end.
Guillermo Amore, President and Chief Executive Officer of Grupo
stated that, "Since the devaluation, Grupo Iusacell has increased
prices at a
rate substantially less than that of inflation. We delayed the increase
as possible, but the economic reality made a price increase inevitable.
This action will improve cellular operating margins."
Amore stated further that future price increases may be required
on inflation. In addition, he praised the government's actions to
inflation. Amore stated, "As a result of government initiatives, we
renewed investor confidence in the Mexican economy. We are optimistic
this will translate into a much lower inflation rate and increased
activity during 1996."
Grupo Iusacell is the leading independent wireless telecommunications
company in Mexico. It is the non-wireline cellular service provider in
Mexico's nine regions in the central portion of Mexico (including Mexico
covering a total of 64 Million POPs -- representing 70% of the country's
In addition to its cellular operations, Grupo Iusacell is continuing
commercial trial of radio telephony services, and has recently been
long distance license by the SCT, with which it intends to provide
international and domestic long distance service in 1997. Grupo Iusacell
principally owned by the Peralta family of Mexico, and Bell Atlantic
BEL), a major U.S. regional bell operating company.
For information on Bell Atlantic's investment in Grupo Iusacell contact:
- Karen Ann Kurlander, Bell Atlantic Enterprises International
For information on Grupo Iusacell contact:
- Juan Pablo Salinas, Grupo Iusacell, Milan - 39-2-74-90-187
from the U.S.: 011-525-104-4120
from within Mexico City: 905-104-4120/ (CEL