Wednesday, October 25, 2006

Axtel to Acquire Avantel, Combining Networks in Mexico

Axtel agreed to acquire Avantel Infraestructura in a plan to create a fully complementary national telecommunications company in Mexico providing local, long-distance, broadband and data, in a transaction valued at $500 million. The deal combines AXTEL's hybrid wireline and fixed-wireless local access network, and 683 kilometers of metropolitan fiber optic rings, with Avantel's 7,700 route kilometers of long-haul fiber optic network and 300 kilometers of metropolitan fiber optic ring.

The merger would consolidate AXTEL's position as the second-largest fixed-line integrated telecommunications company in Mexico.