Movida Communications Joins Forces with the Cisneros Group, Sprint and Wal-Mart to Launch New Wireless Service Targeted to Hispanic Community
Movida will provide wireless voice and data communications using the Sprint nationwide wireless network, with rate plans that cater to the needs of
the domestic Hispanic market. Through its arrangement with Wal-Mart, Movida plans to sell Movida-branded handsets and cards in Wal-Mart stores in select
markets as well as other retail locations in the first half of 2005. Following its initial launch, Movida intends to offer added-value features and services that are both culturally and geographically relevant to Hispanic consumers, many of which will be provided through its relationship with its primary investor Cisneros.
"Movida is about understanding Hispanic consumers and offering them products and services that help them stay connected - both with their friends and family as well as their culture," said Anthony V. Montoya, President of Movida. "We've built the perfect alliance to successfully reach this segment. With the best wireless network in the nation, the leading retailer in the
country and one of the largest Latin American media and entertainment groups, we couldn't ask for a better line up to launch and grow our business."
Already the largest and fastest-growing ethnic segment in the United States, the Hispanic population is expected to grow to 17 percent of the domestic population by 2010. This, in addition to the fact that over 90 percent of Latin American wireless business comes from pay-as-you-go type services, clearly demonstrates the size of the opportunity.
Steven Bandel, President and Chief Operating Officer of The Cisneros Group, commented, "This is an exciting opportunity for The Cisneros Group since the rapidly growing U.S. Hispanic market has never been tapped by the major telecommunications providers. Our investment in Movida leverages our expertise in servicing the U.S. Hispanic market. Cisneros' ownership and relationship to many content-providing companies in the United States and Latin America such as Univision and Venevision, as well as our years of
experience marketing to the Hispanic segment, will be instrumental in Movida's success in understanding and serving this market." Mr. Bandel added, "Cisneros
also brings expertise in the pre-paid mobile services market through our successful participation in Telcel Venezuela, Venezuela's largest wireless provider and an industry pioneer in prepaid distribution."
Appropriately, all Movida services will be offered primarily in Spanish. Its customer care mantra, "For English press two," illustrates its Spanish focus, as well as Movida's name itself, which means "on the move." Movida's marketing programs are not traditional programs simply translated into Spanish. Instead, they exemplify the specific nuances of the language and
culture as well as the needs of the segment.
This agreement enables Sprint to leverage its nationwide network to provide wireless services beyond its traditional customer base. "We're pleased
to join forces with Movida to offer a uniquely different wireless experience for the growing Hispanic market," said John Garcia, senior vice president, sales and distribution for Sprint Consumer Solutions. "Our relationship with Movida is consistent with our MVNO strategy of working with complementary resellers who plan to tap underserved segments of the wireless market."
Movida Communications, Inc. is a newly formed wireless services provider that offers pay-as-you-go wireless voice and data communications services
exclusively to the U.S. Hispanic population, using Sprint's all-digital, all-PCS nationwide wireless network.
The Cisneros Group of Companies is one of the largest privately held media, entertainment, technology, and consumer products organizations in the world. The Cisneros Group's holdings include majority and minority interests and may be held, directly or indirectly, through partnerships, joint ventures or alliances. Some of the Group's holdings include interests in: Venevision, the leading broadcast television channel in Venezuela; Venevision International, a Spanish-language entertainment company with specialization in TV
programming; Univision Communications Inc. (NYSE: UVN), the number one provider of Spanish- language content to the U.S. Hispanic audience; Claxson Interactive Group Inc. (XSON), an integrated Ibero-American media and entertainment company; AOL
Latin America Inc. (Nasdaq: AOLA), one of the leading Internet and interactive service providers in Latin America; DIRECTV Latin America, a direct-to-home
satellite TV provider with operations across the region; Cerveceria Regional, the second-largest brewery and beer distributor in Venezuela; Backus & Johnston, the largest brewer in Peru and the sixth-largest in Latin America; and Pueblo, one of the leading supermarket chains in Puerto Rico and the U.S. Virgin Islands.
Sprint offers an extensive range of innovative communication products and solutions, including global IP, wireless, local and multiproduct bundles. A
Fortune 100 company with more than $27 billion in annual revenues in 2004, Sprint is widely recognized for developing, engineering and deploying state-
of-the-art network technologies, including the United States' first nationwide all-digital, fiber-optic network; an award-winning Tier 1 Internet backbone; and one of the largest 100-percent digital, nationwide wireless networks in the United States.