Mexican fixed-line operator Axtel will become the country’s first MVNO using America Movil(AMX)-owned Telcel’s network. The move follows wide-ranging regulatory reforms aimed at curbing the incumbent’s dominant position.
As part of the deal,…
Mexican fixed-line operator Axtel will become the country’s first MVNO using America Movil(AMX)-owned Telcel’s network. The move follows wide-ranging regulatory reforms aimed at curbing the incumbent’s dominant position.
As part of the deal, Axtel will access and share the passive infrastructure of wireless carrier Telcel and AMX’s fixed-line subsidiary Telmex.
The telco received Ps950m(US$62m) in compensation from AMX, after the parties agreed to relinquish several interconnection-related claims between the parties for the 2005-2015 period.
Local triple-play operator Megacable is also looking to rent airtime and data from America Movil, so it can launch its own MVNO by 2016.
Inks infrastructure agreement with Iusacell
Axtel also inked a number of infrastructure agreements with number three carrier Iusacell, which was acquired by US telco AT&T earlier this year, following the settlement of interconnection-related disputes between the two for the same 2005-2010 period.
The agreements follow regulatory changes implemented last year under the presidency of Enrique Pena Nieto, in a bid to loosen America Movil’s grip on the local telecoms market and attract foreign investments.
As part of the reforms, the Carlos Slim-owned telco, which controls 70% of the mobile market and 80% of the fixed-line segment, must share network infrastructure and dispose of some assets. Last month, Axtel said that “the new industry dynamics promoted by the telecom reform, including the regulated access to the preponderant carrier infrastructure,” provided attractive opportunities to potentially enhance value to its shareholders.
The company posted annual revenues of Ps 10.56m in 2014, up 3% on the previous year.
The market includes AMX, Telefonica’s Movistar, as well as A&T’s recently-acquired carriers Iusacell and Nextel Mexico, which are set to merge to form a stronger competitor.
