Showing posts with label Mexico. Show all posts
Showing posts with label Mexico. Show all posts

Monday, August 21, 2017

América Móvil sees ARPU rising as 4G smartphones take hold in Latin America

América Móvil, the Mexican telecommunications carrier with interests across Latin America and fourth largest mobile operator worldwide in terms of subscriber count, continues to travel along a familiar path – new subscribers in many markets are harder to find but surging demand for always-connected smartphones presents an opportunity to increase ARPU, which lags the consumer spend of developed markets. Competition across Latin America is fierce as reflected in the high subscriber churn rates.

Carlos Slim Helú (77), who at times has been ranked as the world's richest person but who now holds the No.6 position on the 2017 Forbes Billionaires list ahead of No.7 Larry Ellison but behind No.5 Mark Zuckerberg, still sits on América Móvil's board of directors, but his son Carlos Slim Domit (50) now serves as chairman of the board. In recent years, the company has faced regulatory challenges in its home market, where it continues to hold the leading share, built new bases through its Claro brand throughout Latin America, and completed deep investments in Europe (a 51% stake Telekom Austria and a 21% stake in KPN Netherlands).

In 2013/14, Mexico undertook a structural reform of its telecommunications sector, forcing América Móvil to sell off some or all of its Telmex wired assets in a process that is still underway. Discussions with the Mexican regulatory authority, IFETEL, on the legal separation of Telmex appear to be ongoing. The full effect of this reform perhaps will be felt next year, when a new wholesale, nationwide infrastructure provider known as Red Compartida (shared network) begins commercial 4G service.

In late July, América Móvil published financial results and operational metrics for Q2. These provide insight not only into the company but also the Latin American telecommunications sector in general. Several macroeconomic issues, however, continue to impact the sector, including the tense situation and declining economy in Brasil, and the wildly fluctuating value of the Mexican peso (declining 28% versus the real, 20% versus the Colombian peso, and 8% versus the dollar with respect to the entire year).

Highlights for Q2 2017

Total accesses of 362,593,00 as of June 30, 2017, including 77% wireless, 9.2% fixed line, 7.6% broadband and 6.0% TV, as below (millions):

                                                  2017                                        2016

Wireless subscribers                  280                                          283

Revenue Generating Units         83                                            82

Revenues (US$)                         13.4bn                                    12.9bn

EBITDA (US$)                         3.7bn                                      3.4bn

Capex (US$)                             1.2bn                                      1.8bn



The company reports continued disconnection of prepaid subscribers in many countries, but a 5.1% net increase in postpaid subscribers, with Chile's increasing 17.8%, Brazil’s 10.0%, Colombia's 7.7% and Mexico's 6.4%l. On the fixed-line platform RGUs rose 1.1% from the prior year, with broadband accesses up 5.7% year-on-year after connecting 209,000 new accesses in the quarter, mainly in Central America, Colombia and Brazil. Colombia, Argentina, Chile and Peru were the main forces behind the strong expansion of service revenues.

Outstanding debt declined from MXP 629.7 billion (approx. $35.2 billion) in December to MXP 550.8 billion pesos ($30.8 billion) in June, a 12.5% decrease, reflecting the company’s debt reduction efforts and the appreciation of the Mexican peso versus other currencies in the period. Approximately 21.6% of company revenues are U.S. dollar-based.

ARPU in Mexico was MXP 137 pesos ($7.69), up 7.5% over last year, with churn at 4.1%; ARPU in Chile was CLP 5,826 ($8.96), up 6.9% over last year, with churn of 5.3%; ARPU in Colombia was COP 16,815 ($5.6), up 1.6% over last year, with churn of 4.3%.

Major spectrum acquisition in Mexico

Earlier this year, América Móvil acquired 60 MHz of wireless spectrum in the 2.5 GHz band from Grupo MVS on undisclosed terms. The deal was approved in May 2017 by Mexico's telecom regulator. The 2.5 GHz spectrum gives América Móvil a similar spectrum position as Sprint, which recently published the results of a field trial using massive MIMO with 8T8R (8 transmit, 8 receive) radios in a 20 MHz channel in the 2.5 GHz band. The trial was conducted with Samsung and reportedly delivered peak speeds of 330 Mbit/s. Capacity per channel increased approximately four-fold, cell edge performance increased three times and the overall coverage area expanded compared with current radios. América Móvil may now be looking for a similar outcome for its newly acquired spectrum in Mexico.

Pact with Samsung Electronics

Coincidentally, in July, Samsung Electronics reached a framework agreement with América Móvil to supply 4.5G networking gear in Mexico and other Latin American markets. The deal also covers the development of IoT solutions and the use of Samsung devices such as the Galaxy S7Edge, the Galaxy S8 and the Galaxy S8+.

Massive fine in Colombia

In late July, a Colombian arbitration panel ordered América Móvil's Colombian affiliate, Comunicación Celular (COMCEL, operating under the Claro brand) to pay $1 billion in a dispute over ownership of network architecture. The case dates back to a contract signed in 1994 by COMCEL under which it was bound to return certain infrastructure to the state after a period of ten years. Movistar, the local affiliate of Telefonica, has also been hit with a $529 million fine for the same reason. The operators argue that they have continually upgraded the infrastructure over time and that new contracts and conditions have superseded the outdated agreement. Both carriers are expected to appeal. América Móvil has sought the intervention of the Mexican government, arguing that such a massive fine for such a dubious case will have negative repercussions between the countries.

Tuesday, August 8, 2017

Has Mexico’s telecommunications reform of 2013 been a success?

In September 2013, as part of the Pacto por México initiated by the then newly elected President Enrique Peña Nieto, the Federal Commission of Telecommunications (Comisión Federal de Telecomunicaciones, or CoFeTel) was replaced by the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones or IFT). This new, autonomous federal agency, which is headed by a board of seven commissioners, set out to undo the longstanding monopoly of América Móvil and its Telmex (fixed line) and Telcel (mobile) business units. At the time, América Móvil controlled 71% of the landline business and 82% of the mobile market. Its owner, Carlos Slim Helú, was ranked as the richest person in the world, but in terms of operational metrics Mexico's telecom market was nowhere near that of a developed country. A key objective of the telecom reform was to split América Móvil's fixed line and mobile business units.

It has been three and a half years since the reforms began (or at least three years since they were officially ratified by Mexico's legislature) and the break up of América Móvil has yet to be finalised. Despite losing market share, revenue at the company have grown and the company is now more of a leader for all Latin America. Rather than suffering a financial setback, the Carlos Slim family seems to have prospered since the reforms. So, what has changed?

Mexico's Instituto Federal de Telecomunicaciones (IFT) argues that its reforms have made measurable improvements, including:

•   The price of telecommunication services in Mexico dropped by 29% between June 2013 and December 2016, even though the rate of inflation over that period was 12.8%.

•   The concept of national long-distance phone calls became obsolete.

•   The cost of international long-distance phone calls dropped by 40%.

•   The average mobile phone bill dropped by 43%.

•   The ability to easily switch mobile operators with number portability became widely implemented.

•   Since June 2013, the number of paid TV subscriptions (cable or satellite) has risen by 33%; currently, 60% of Mexican homes have a paid TV subscription.

•   Fixed residential broadband access grew 19% between Q4 2013 and December 2016. currently, 48% of Mexican homes have broadband Internet service. As recently as 2011, when efforts to pass the telecom reform were gathering strength, only 11% of the population had broadband access in their homes, with multiple family members in each home, it is now estimated that 61% of the population has broadband access.

•   More than 80% of Mexican homes with broadband service currently enjoy download speeds of 10 Mbit/s or better; in 2015, most home were receiving download service in the 2~9 Mbit/s range.

•   Broadband via coaxial cable is quickly gaining in popularity and now accounts for 35% of the market; DSL service continues to account for the largest share of the market but is dropping in popularity, while FTTH is rising at a 150% annual growth rate.

•   In 2013, América Móvil (Telmex) controlled 71% of the fixed broadband access market, followed by Grupo Televisa at 12%, Megacable-MCM at 6%, and a number of other providers; by 2016, Telmex had lost 14.5 market share percentage points to its rivals and now controls under 57% of the fixed broadband access market.

•   In mobile broadband, América Móvil (Telcel) has also seen its share drop from 82% in 2013 to 72% in 2016; leaders in Mexico mobile broadband include: América Móvil (Telcel) at 72%, Telefonica at 14%, AT&T at 12%, and a handful of other players capturing the rest.

•   The amount of licensed spectrum has risen, before 2013, a total of 222 MHz was available for licensing; currently, 404 MHz is available for commercial use with the addition of 190 MHz of 2.5 GHz bands, Mexico will soon have 594 MHz of spectrum for commercial services.

•   Mexico became the first country in Latin America to end analogue TV service.

•   Private investment in telecommunications in Mexico rose 76% between 2014 and 2016, including many direct foreign investments.

IFT also noted that telecommunication service providers have also benefited directly from the reforms, as the total revenue collected by these companies rose from MXP 399 million in 2013 to MXP 456 million in 2016. Mobile revenue now accounts for 55% of the market, while fixed line accounts for 45%.

The Red Compartida project has selected its vendors

There has been limited public information about the Red Compartida (shared network) project since the selection of ALTÁN Redes as the principal contractor late last year. Red Compartida is sometimes described as the largest construction of a new public access network in the world, although it is eclipsed by the FirstNet emergency response project in the U.S.

Key facts of the initiative include:

•   Red Compartida will only offer wholesale mobile services.

•   Red Compartida will build a new national network covering at least 92.2% of the population.

•   The commercial launch date will be March 31st, 2018, an aggressive target!

•   Red Compartida's largest investor at 33% is Marapendi Holding BV, an indirect subsidiary of North Haven Infrastructure Partners II, an infrastructure fund with a value-add strategy to invest in OECD countries around the world, managed by Morgan Stanley Infrastructure; Caisse de dépôt et placement du Québec(CDPQ), one of North America's largest pension fund manager holds a 12.68% share; Mr. Miguel S. Escobedo holds a 9.35% share; and Mr. Eugenio Galdón, Chairman of Multitel, holds a 3.34% share.

•   Axtel and Megacable also hold a stake in ALTÁN Redes through a series of non-voting shares and without involvement in management; each have a participation of 4.01%.

•   In March, ALTÁN Redes selected Huawei and Nokia as turn-key technology providers for Red Compartida, a pure IP + LTE network.

•   Huawei technology will be used for central and southern Mexico (telecommunications regions 6 to 9), as well as providing the backbone.

•   Nokia's technology will be rolled out in the northern part of the country (regions 1 to 5). Nokia will also supply the network Core, which includes the Network Operation Center (NOC) and Security Operation Center (SOC).

AT&T continues to invest in Mexico

Finally, it should be noted that AT&T continues to invest heavily in Mexico, even though it may or may not be allowed to participate in the wholesale Red Compartida mobile infrastructure program when it comes online. AT&T's LTE network now covers 88 million people in Mexico and it expects to reach 100 million PoPs by the end of 2018. For Q2 2017, AT&T reported that wireless revenues from Mexico were $665 million, up 9.7% versus the year-earlier quarter, largely due to subscriber growth, which was partially offset by competitive pressures and foreign exchange.  AT&T added 92,000 post-paid subscribers and 402,000 prepaid subscribers in Q2. It now has 13.1 million total wireless subscribers in Mexico, a 31% increase from a year ago.

Friday, May 5, 2017

Cisco develops analytics for Mexico's Conectado

Cisco Mexico announced that it has developed the Country Digitization Analytics Platform (CDAP) designed to support the implementation of Mexico Conectado, a program of the Mexican government's Secretariat of Communications and Transportation (SCT).

The Cisco CDAP platform is designed to provide the SCT with analytics information for usage of the initiative, in addition to raw data relating to the usage of the network.

Mexico Conectado is a program initiated by Mexico's federal government that is intended to guarantee citizens constitutional right to access to broadband Internet service by addressing the digital divide in the country. The program was developed by the Mexican SCT and is being implemented through the department Coordination of the Information and Knowledge Society (CSIC, or Coordinación de la Sociedad de la Información y el Conocimiento).

The key objective of Mexico Conectado is to extend broadband Internet access, free of charge, to low income populations via the deployment of more than 100,000 sites nationwide. The system is being implemented across Mexico, primarily in public locations such as schools, health centres, libraries, community centres, public parks and government buildings.

The Country Digitization Analytics Platform is designed to offer an open government analytics and intelligence platform and was developed by Cisco engineers leveraging the cloud-based functionality of Cisco Meraki technology in a multi-carrier and multi-service provider environment.

The CDAP works by collecting data from Mexico Conectado sites and converting it into relevant information that can facilitate measurement of the impact the country digitisation initiative is having. Specifically, the CDAP is designed to provide intelligence relating to the sustainability, social impact and support future fine-tuning of the initiative.

The CDAP enables consolidation and/or correlation of data from a number of different management and use domains and transforms the data into analytics that can be used to measure key usability indicators for the country digitisation program. Analytics data provided includes the number of citizens using public Internet access, external/internal hotspot access distribution, bandwidth consumption and usage of government sites via public Internet.


Monday, April 3, 2017

Mexico's ALTAN Redes Picks Nokia for national LTE wholesale Net

Nokia announced that it has been selected by the ALTÁN Redes consortium to design, build and operate a new national LTE and 5G-ready wholesale network in Mexico in what represents its largest contract to date in Latin America.

Called Red Compartida, the shared network project in Mexico is an innovative program designed to provide wireless broadband coverage nationwide to 92% of the population, and thereby reduce the digital divide and strengthen the country's digital services capabilities. The greenfield deployment will utilise the 700 MHz frequency band.

The contract with Nokia includes provision of the core of the network, including 100% of the fully virtualised core network and 40% of RAN, IP backhaul, OSS and NOC solutions. The Nokia equipment is to be deployed in five regions of Mexico, out of a total of nine, including Guadalajara and Monterrey, the second and third largest cities.

The project also encompasses a range of services that mean Nokia will deliver a turnkey project, including site acquisition, construction, deployment, network integration, network planning and optimisation, master system integration (core network), operation and maintenance and managed services.

Nokia will specifically supply solutions including a virtualised core network, VoLTE and EPC based on Air Frame, 4.5G Pro radio access based on AirScale, IP and optical backhaul systems, DWDM 100 Gbit/s and IP routing platforms for aggregation, and microwave transmission platforms.

The Red Compartida project is a public-private international partnership led by the Mexican Ministry of Communications and Transport (SCT) and the Office for the Promotion of Investments in Telecommunications (PROMTEL), in coordination with the Federal Institute of Telecommunications (IFT). The project is expected to involve a total investment of over $7 billion over nine years, financed by international and local investors.

ALTÁN Redes is a new wholesale carrier supported by international investors and Mexican shareholders that won the tender process to build and operate the shared network which will support the delivery of mobile and Internet services for existing mobile operators and existing and new MVNOs.

http://www.nokia.com

Friday, November 4, 2016

Rivada Disqualified from Mexico's Red Compartida Project

Rivada Networks has been disqualified from the bidding for Mexico’s landmark Red Compartida project, is an initiated by the Mexican government to build a wholesale LTE network operated on 90 MHz of spectrum in the 700 MHz band.

In a press statement, Rivada said it "has complied with every requirement put before us by the Mexican government, despite the fact that the government repeatedly moved the goalposts on bidders in the final weeks and months."

http://www.rivada.com


Monday, October 3, 2016

Telefónica Launches Open Cloud in Brazil, México and Chile

Telefónica Business Solutions launched Open Cloud and Cloud Server services in Chile, Brazil and Mexico.

The new services, which are based on Open Stack and hosted in Telefónica's data centers in Chile, Brazil and Mexico, are powered by Huawei's solution.

Telefónica's said Open Cloud reflects its commitment to an open and secure cloud and provides a broad range of services ranging from computing, storage, networks and databases to more advanced application development, security and analysis services. One of the main advantages of Open Cloud is the ability to connect to customers’ private networks, as well as the connectivity to additional Telefónica's data center services. All of this enables customers to have hybrid cloud environments in a fast and easy manner in accordance with countries’ local laws and regulations.

José Luis Gamo, B2B Products & Solutions Director at Telefónica Business Solutions, said: "The launch in record time of the Open Cloud and Cloud Server services in Chile, Mexico and Brazil is a huge joint milestone for Telefónica and Huawei. A strategic technology partner for Telefónica that enables us to provide a better Cloud solution in the market with the best features at the best price and with the latest technology. With this release, which represents Telefónica's commitment to an open and secure cloud, we are moving towards our goal of providing the best products for Cloud services, while driving our customers’ digital transformation."

Yelai Zheng, President of Huawei IT Product Line, said: “We are honored to have the global cloud strategic partnership with Telefónica, the strategic alliance aims at delivering advanced public cloud services for all Telefónica enterprise customers. By combining Huawei ‘s long-term and sustained investment in global information and communications technology, with Telefónica‘s leading B2B market development capabilities, both companies aim to transform the traditional industries by providing high-quality, innovative, and industry-oriented cloud services, to enterprises and SME customers. Cloud is a key strategic new business for Huawei, and we are committed to grow more and more our investment in this area. Working together, Telefónica and Huawei can build key differentiators to succeed in the market."

http://www.telefonica.com
http://www.huawei.com

Thursday, April 14, 2016

Telefónica Mexico Orders 1,000 Ericsson Radio Dots

Telefónica Mexico will deploy more than 1,000 Ericsson Radio Dot Systems will be deployed in shopping malls, airports and commercial buildings in Mexico City to reinforce cellular coverage. The units will support 4G/LTE and 3G/WCDMA indoor coverage.

Eduardo Ricotta, Vice President, Ericsson Latin America, says: "Mexico City is the perfect place for Telefónica's largest deployment of Ericsson Radio Dot System. The city is full of high-rise buildings and millions of people wanting excellent mobile broadband services, which Telefónica can now provide in a cost-efficient way."

http://www.ericsson.com/ourportfolio/products/radio-dot-system

Monday, December 7, 2015

Mexico's Axtel to Merge with Alestra

Alestra announced a merger agreement with Axtel, a fixed line operator based in Monterrey, Mexico. It serves 39 cities across Mexico with fixed line services, including FTTH, VPNs and integrated communications.

Alestra is an IT services company based in Monterrey, Mexico.  It operates five data centers across Mexico. It's parent company. Alfa, purchased AT&T's 49% in Alestra baci in 2011.

http://www.alestra.com.mx/
http://new.axtel.mx/

Monday, June 29, 2015

AT&T Confirms $3 Billion to Upgrade Networks in Mexico

AT&T last week confirmed plans to invest US$3 billion to extend its high-speed, mobile Internet service to Mexico, covering 100 million people in Mexico by year-end 2018. This is in addition to the US$4.4 billion AT&T invested earlier this year to acquire Iusacell and NEXTEL Mexico.

Specifically, AT&T said the first phase of the mobile network will be complete in the next six months and cover 40 million Mexicans, about one-third of the population. By the end of 2016, AT&T expects its mobile Internet service will reach 75 million people, nearly two-thirds of the population. AT&T plans to reach 100 million people by year-end 2018.

AT&T is preparing to introduce new plans around a North American Mobile Service Area, letting customers extend their plans across both countries.


http://about.att.com/story/att_to_invest_approximately_3_billion_in_mexico_to_extend_mobile_internet_to_100_million_consumers_and_businesses_by_year_end_2018.html

Thursday, April 30, 2015

AT&T Completes Acquisition of Nextel Mexico

AT&T completed its previously announced acquisition of Nextel Mexico from NII Holdings for $1.875 billion, less approximately $427 million of net debt and other adjustments. The deal includes spectrum licenses, network assets, retail stores and subscribers in Mexico.

Earlier this year, AT&T acquired Mexican wireless provider Iusacell. AT&T will integrate Iusacell and Nextel into one company focused on bringing more choices, better service and faster mobile Internet speeds to more locations throughout Mexico. AT&T plans to create the first-ever North American Mobile Service area, which will cover more than 400 million consumers and businesses in Mexico and the United States.

Thaddeus Arroyo, Chief Executive Officer for AT&T Mexico, LLC and Iusacell, will lead the combined company.

http://www.att.com

Monday, January 26, 2015

Mexico Tests 700MHz LTE for National Broadband with ALU

Alcatel-Lucent is working with government of Mexico to trial LTE running in 700 MHz APT spectrum as the basis for a new national wholesale ultra-broadband mobile network initiative.

The "Red Compartida Project" aims to provide a 4G LTE mobile broadband wholesale offering service in the Digital Dividend spectrum for both existing services providers and licensed tenant operators.

The trial in the city of Acapulco uses Alcatel-Lucent’s LTE express solution for rates up to 120 Mbps and the company's latest Packet Microwave Radio solution as backhaul.

http://www.alcatel-lucent.com/press/2015/alcatel-lucent-and-mexican-government-conduct-4g-lte-field-trial-preparation-new-national-mobile-0

http://www.ift.org.mx/iftweb/wp-content/uploads/2014/10/COMUNICADO-48-IFT.pdf

AT&T Builds its Network in Mexico with Nextel Acquisition

AT&T plans to acquire Nextel Mexico from NII Holdings for US$1.875 billion, less the outstanding net debt of the business at closing.

The deal includes spectrum licenses, network assets, retail stores and approximately 3 million subscribers. Nextel Mexico’s network covers approximately 76 million people.

The Nextel Mexico assets will be combined with those of Iusacell, which AT&T recently acquired. AT&T said its ambition is to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and the United States.

Regulatory approvals are required as is the consent of the U.S. Bankruptcy Court for the Southern District of New York, which is overseeing the restructuring of NII Holdings.

http://about.att.com/story/att_to_acquire_nextel_mexico.html


  • Nextel de México is still using an iDEN (Integrated Digital Enhanced Network) over most of its territory. The carrier has launched LTE in Mexico City, Guadalajara and Monterrey.
  • Earlier this month, AT&T completed its previously announced acquisition of  Iusacell, a leading Mexican mobile operator, from Grupo Salinas for US$2.5 billion, inclusive of Iusacell debt.  The deal includes all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers. 
    Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people. AT&T plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.

    Iusacell operates a 3G  GSM/UMTS network based on the same technology that AT&T uses in the United States. Iusacell owns between 20 and 25 MHz of 800 MHz spectrum, primarily in the southern half of the country, including Mexico City and Guadalajara, and an average of 39MHz of PCS spectrum nationwide. 

    “The quick approval of this deal is one more example of why Mexico is an attractive place to invest,” said Randall Stephenson, AT&T chairman and CEO. “We look forward to bringing more wireless competition to Mexico along with an improved mobile Internet experience for customers. Expanding and enhancing Iusacell’s mobile network to cover millions of additional consumers and businesses is our top priority."

Monday, January 19, 2015

AT&T's Acquisition on Iusacell Provides Access to Mexico

AT&T completed its previously announced acquisition of  Iusacell, a leading Mexican mobile operator, from Grupo Salinas for US$2.5 billion, inclusive of Iusacell debt. 

The deal includes all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers.

“The quick approval of this deal is one more example of why Mexico is an attractive place to invest,” said Randall Stephenson, AT&T chairman and CEO. “We look forward to bringing more wireless competition to Mexico along with an improved mobile Internet experience for customers. Expanding and enhancing Iusacell’s mobile network to cover millions of additional consumers and businesses is our top priority.”

 With its acquisition of Iusacell, AT&T plans to create the first-ever North American Mobile Service area covering more than 400 million consumers and businesses in Mexico and the United States. “It won’t matter which country you’re in or which country you’re calling – it will all be one network, one customer experience,” said Stephenson.

Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people. AT&T plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.

Iusacell operates a 3G  GSM/UMTS network based on the same technology that AT&T uses in the United States. Iusacell owns between 20 and 25 MHz of 800 MHz spectrum, primarily in the southern half of the country, including Mexico City and Guadalajara, and an average of 39MHz of PCS spectrum nationwide.

Iusacell will continue to be headquartered in Mexico City. F. Thaddeus Arroyo, a 19-year AT&T executive, has been named to lead Iusacell as its Chief Executive Officer.


http://about.att.com/story/att_completes_acquisition_of_iusacell.html

Sunday, November 9, 2014

AT&T Bets on Mexico with Acquisition of Iusacell

AT&T agreed to acquire Iusacell, a leading Mexican mobile operator, from Grupo Salinas for US$2.5 billion, inclusive of Iusacell debt. The deal includes all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers. The acquisition will occur after Grupo Salinas, the current owner of 50 percent of Iusacell, closes its announced purchase of the other 50 percent of Iusacell that Grupo Salinas does not own today.

Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people. AT&T plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.

Iusacell operates a 3G  GSM/UMTS network based on the same technology that AT&T uses in the United States. Iusacell owns between 20 and 25 MHz of 800 MHz spectrum, primarily in the southern half of the country, including Mexico City and Guadalajara, and an average of 39MHz of PCS spectrum nationwide. Iusacell’s Total Play business, including the network assets to support pay TV and wireline broadband services will be spun out to Grupo Salinas’ existing shareholders prior to AT&T closing its acquisition of Iusacell.

AT&T cited recent changes to government policies in Mexico that have created a friendly climate for foreign investment.  AT&T plans to create a North American Mobile Service area for U.S. customers calling or visiting Mexico, and Mexican customers calling or visiting the United States.

“Our acquisition of Iusacell is a direct result of the reforms put in place by President Peña Nieto to encourage more competition and more investment in Mexico. Those reforms together with the country’s strong economic outlook, growing population and growing middle class make Mexico an attractive place to invest,” said Randall Stephenson, AT&T chairman and CEO. “Iusacell gives us a unique opportunity to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and the United States. It won’t matter which country you’re in or which country you’re calling – it will all be one network, one customer experience.

“Mexico is still in the early stages of mobile Internet capabilities and adoption, but customer demand for it is growing rapidly,” Stephenson said. “This is an opportunity for us to provide Iusacell the financial resources, scale and expertise to accelerate the roll-out of world-class mobile Internet speeds and quality in Mexico, like we have in the United States.”

Iusacell will continue to be headquartered in Mexico City following the transaction closing.

The transaction is subject to review by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones) and Mexico’s National Foreign Investments Commission.

http://about.att.com/story/att_to_acquire_mexico_wireless_provider_iusacell.html

In 2011, AT&T sold its 49% stake in Mexico's Alestra, giving ALFA 100% control of the firm. Financial terms were not disclosed. Alestra offers a range of business-class services, including converged communications, hosting and cloud capabilities. The company operates a 40 Gbps fiber network spanning 6,700 kms. across Mexico, including 1,750 kms of metro rings.

Wednesday, July 9, 2014

América Móvil to Sell Majority Share of Mexican Assets

América Móvil announced plans to sell the majority interest (over 50%) of its operations in Mexico in order to cease being a "preponderant economic agent" as defined by new laws intended to break up the telecom monopolies in the nation.

The intended sales concern América Móvil's fixed line business, TelMex, and its mobile network, Telcel.  Carlos Slim is the largest stakeholder in América Móvil.

As part of the plan, all cellular cites (base stations), including towers and related passive infrastructure, will be separated from Telcel so that they may serve on a wholesale basis to all interested parties.

América Móvil's TelMex division also ratified a commercial agreement with Dish México in anticipation of offering pay television service once its regulated status as preponderant economic agent is cleared.

http://www.americamovil.com/amx/en/cm/news/2014/08072014.pdf


Wednesday, May 14, 2014

Cisco Looks to Expand Customer Financing in Latin America

Cisco Capital has established operations in Mexico, expanding its financing capabilities in Latin America.

Cisco plans to provide direct local financing to customers, beginning in Mexico, complementing its existing network of financing partners in the region.

“This represents a significant milestone for Cisco Capital and our customers in Latin America,” said Kristine A. Snow, president of Cisco Capital. “This is the first time we have had direct operations in this region, which will help Mexican businesses acquire new technologies with flexible and competitive direct financing options, including local currency offers.”

http://www.cisco.com

Wednesday, May 7, 2014

Mexico's Alestra Implements 400G DWDM with ALU

Alestra has implemented Alcatel-Lucent 1830 Photonic Service Switch (PSS) platform in its network in Mexico to support channel speeds of 400 Gigabits per second.  The 400G capability has already been tested in Alestra's live network.

“Once again Alestra revolutionizes ICTs optimizing our network to provide the most innovative solutions of Telecommunications and Informatics to the Mexican market. With the deployment of Alestra network leveraging Alcatel-Lucent technology, once again reinforce our offer and our commitment to the industry, making us the first supplier on the continent able to provide businesses with the best value proposition in terms of bandwidth,” said Alejandro Irigoyen, Director of Operations and Systems Alestra.

“The DWDM solution based on the 1830 PSS provides Alestra greater efficiency, flexibility and the scalability required to continue to innovate and lead in corporate services in the Mexican market. With this new network, Alestra will deliver services of up to 400 Gbps between two points on the network, providing greater capabilities in its transport services at the same time that it ensures the successful evolution to cloud services,” said Freddy Turriaf, Commercial Director of Alcatel-Lucent in Mexico.

http://www.alestra.com.mx
http://www.alcatel-lucent.com

Friday, March 7, 2014

Mexico' Grupo Pochteca Picks Cisco Unified Computing System

Cisco announced customer for its Unified Computing System - Grupo Pochteca, one of the largest distributors of industrial raw materials in Mexico and part of Latin America.

Grupo Pochteca's newest data center will use Cisco Unified Computing System (UCS) servers , NetApp storage (FAS3220 HA systems) within the FlexPod architecture, and Cisco Networking and Security Appliance for a private cloud.

FlexPod is a converged computing, networking and storage solution developed by Cisco and NetApp. FlexPod components include Cisco UCS servers, NetApp unified storage systems, and Cisco Nexus networking fabric.

Cisco said Pochteca is achieving time and cost savings through snapshot technology for backups, quick server (physical and virtual) provisioning through UCS service profiles and NetApp’s FAS3220 Storage Platforms, and virtualization.

http://www.cisco.com

Monday, February 10, 2014

Mexico's Alestra Opens Cloud Data Center

Alestra inaugurated its fifth data center in Mexico.

The new facility in the city of Querétaro will support the carrier's cloud services.  Alestra boasts claims its new data center achieves a PUE (Power Usage Effectiveness) of between 1.2 y 1.5, among the lowest in Mexico.

http://www.alestra.mx/

Friday, January 24, 2014

Cisco to Expand Its Presence in Mexico

At a meeting with Mexican President Enrique Peña Nieto, Cisco CEO John Chambers confirmed plans to expand Cisco's presence in Mexico, including the recently announced Cisco Support Center, the expansion of manufacturing of advanced technology products, and the expansion of the Cisco Networking Academy program. Cisco anticipates direct and indirect investment of up to US $1.35 billion during 2014.

Cisco will expand sourcing of advanced technology products in Mexico through world-class contract manufacturers. Additionally, the investment will cover the recently announced Cisco Support Center (CSC) in Mexico City, which will support local and regional operations and create the capacity to service customers in the Spanish language.

Cisco is also expanding its Networking Academy program to help Mexico increase the pool of high skills workers required to support Mexico's growing technology sector. Cisco Networking Academy in Mexico is one of the largest programs for Cisco worldwide, with more than 50,000 students enrolled in 300 academies nationwide. The Networking Academy is a cloud-delivered, scalable, high-quality program that helps students develop the practical skills needed to design, build, secure and maintain computer networks.

Cisco started operations in Mexico in 1993; it has more than 600 employees working on sales, services and support in offices in Mexico City, Guadalajara, and Monterrey, and in Cd. Juarez focused on Cisco manufacturing operations. Business partners employs over 5800 Mexicans dedicated to Cisco production.  

http://thenetwork.cisco.com

See also