MEXICO'S INFLATION FORCES GRUPO IUSACELL TO RAISE RATES
MEXICO CITY -- Grupo Iusacell, S.A. de C.V. (NYSE: CEL CEL.D) announced today that it has registered an average cellular tariff increase of 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 Iusacell, stated that, "Since the devaluation, Grupo Iusacell has increased prices at a rate substantially less than that of inflation. We delayed the increase as long 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 depending on inflation. In addition, he praised the government's actions to stabilize inflation. Amore stated, "As a result of government initiatives, we have seen renewed investor confidence in the Mexican economy. We are optimistic that this will translate into a much lower inflation rate and increased economic activity during 1996."
Grupo Iusacell is the leading independent wireless telecommunications company in Mexico. It is the non-wireline cellular service provider in four of Mexico's nine regions in the central portion of Mexico (including Mexico City) covering a total of 64 Million POPs -- representing 70% of the country's total. In addition to its cellular operations, Grupo Iusacell is continuing with its commercial trial of radio telephony services, and has recently been awarded a long distance license by the SCT, with which it intends to provide international and domestic long distance service in 1997. Grupo Iusacell is principally owned by the Peralta family of Mexico, and Bell Atlantic (NYSE: 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
- 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 CEL.D BEL)