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Telefónica may bid for Mexican electricity fibre
09 March 2010
Telefónica is talking to independent operators in Mexico about a consortium to bid for the electricity company’s optical fibre network
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Telefónica
Mexico
Telemex
América Móvil
Carlos Slim
Spain’s Telefónica may tie up with small telephone and cable operators in Mexico to bid for a fibre optic network, according to reports. Mexico is auctioning the use of fibre optic cable owned by the state electricity monopoly. The aim is to create a new network for operators.
Telefónica is seeking to challenge the dominance of Telmex, owned by billionaire Carlos Slim. Telmex owns a majority of Mexico’s telephone cables and copper wire network, giving it a monopoly over smaller companies. These companies are seeking to offer phone or internet services and need access to infrastructure.
Francisco Gil, the head of Telefónica’s business in Mexico, is reported to have confirmed to reporters that the group is considering a consortium.
Telmex has 80% of the fixed-line market in Mexico while América Móvil, also controlled by Slim, has more than 70% of the wireless market.
Megacable, broadcaster Televisa and smaller local operators could form a consortium to bid together in the auction. The process is due to be completed by June 2010. GTB