Puerto Rico regulator orders Liberty to clarify spinoff plans
The Puerto Rico Telecommunications Bureau (NET, in Spanish) has ordered Liberty Communications of Puerto Rico LLC and Liberty Mobile Puerto Rico Inc. to submit a detailed report within 15 days clarifying the future of their operations on the island, following public statements by parent company Liberty Latin America regarding a potential corporate spin-off.
In a resolution and order issued Aug. 22, 2025, the agency said the request responds to information made public through Liberty Latin America’s investor relations website and several local media reports. The filing underscores the regulator’s dual role of overseeing telecom companies under its jurisdiction while protecting the public interest.
The document notes that in Liberty Latin America’s second-quarter earnings release, CEO Balan Nair stated: “To unlock this value for our shareholders, we intend to separate Liberty Puerto Rico from LLA, which could take one of many forms, including a spin-off. It is critical that Liberty Puerto Rico has a strong and sustainable capital structure going forward and we are working hard to achieve that desired outcome.”
The NET also referenced published reports suggesting Liberty and/or Liberty Mobile may close retail stores and reduce staff through voluntary resignations and layoffs. The resolution asks Liberty how any such measures could affect its customers, including those served under the federal FirstNet Authority.
Under Puerto Rico’s Telecommunications Act of 1996, the NET has jurisdiction over all telecom services and entities operating locally. That law, combined with the Uniform Administrative Procedure Act and the bureau’s general regulations, empowers the regulator to require information, carry out investigations and enforce compliance.
“Liberty Communications of Puerto Rico LLC and Liberty Mobile Puerto Rico Inc. are ordered to submit a report… outlining their position regarding the information presented in this order. Such report must include, but is not limited to, (i) provide specific information regarding plans for its operations in Puerto Rico; (ii) clarify whether such plans include both entities; (iii) identify the stores planned for closure, and how this would affect its customers and FirstNet Authority customers,” according to the resolution that gives Liberty 15 days to comply.
The resolution notes the NET’s authority to impose administrative fines of up to $25,000 per violation and to order corrective actions to ensure compliance with Puerto Rico’s telecom framework.
Once Liberty files its report, the regulator will determine next steps, which may include additional procedures or rulings. The order further clarifies the rights of parties adversely affected, including the ability to file motions for reconsideration or seek administrative and judicial review under Puerto Rico law.
The filing was signed by NET President Osvaldo Soto-García and Commissioners Ferdinand A. Ramos-Soegaard and Anthony Yrimia-Herrera. It was certified by Secretary Rafael García-Santiago, with notification sent to Liberty’s executive and legal representatives.
Several moving parts
Late last week, Bloomberg reported that some creditors tied to Liberty Puerto Rico’s revolving credit line have begun consulting with financial advisory firm Guggenheim Partners and law firm Cleary Gottlieb Steen & Hamilton, as the company’s parent considers a potential split of its cable and wireless operations, the media outlet stated, quoting sources familiar.
News is my Business reached out to local Liberty officials about the scenario, but the company limited itself to issuing a statement saying, “Thank you for your interest, but at this time the company is not commenting on this matter beyond what was stated when the Q2 2025 financial results were released.”
Meanwhile, an industry source with telecom knowledge said Liberty Latin America’s decision to separate its Puerto Rico and U.S. Virgin Islands operations from the parent company is a strategic move designed to highlight the strength of its island business.
“Liberty Puerto Rico has proven it can stand on its own,” said Raúl Burgos — whose professional background includes running telecom operations on the island — pointing to second-quarter 2025 results where revenue slipped 5% year over year but adjusted operating income jumped more than 20%.
He noted that customer satisfaction has improved, churn is down and new offerings are strengthening retention, underscoring a business that is both profitable and resilient.
The parent company, meanwhile, recorded an operating loss after a $494 million impairment tied to spectrum assets in Puerto Rico.
Burgos said this highlights “the financial weight this market carries within the group, and why separation makes sense.”
By spinning off, Liberty Puerto Rico could unlock value through tailored financing, clearer market valuation and a sharper strategic focus, he said.
For customers, the company has pledged uninterrupted services during the transition, while for investors, the message is clear.
“Puerto Rico is too important, too distinct and too valuable to remain hidden inside a regional portfolio that faces different pressures,” said Burgos, adding that the spin-off, while still without a defined timeline, is intended to give Liberty Puerto Rico the agility and capital structure needed to thrive independently.
