Mexico to bail out telecommunications company Altan Redes, Telecom News, ET Telecom

MEXICO CITY (Reuters) – Mexico will bail out a struggling telecommunications company tasked with developing a nationwide wholesale mobile network in the country, President Andres Manuel Lopez Obrador said on Friday.

Mexico has signed an agreement to become the majority shareholder of Altan Redes, which filed for bankruptcy in 2021, Lopez Obrador said at a regular press conference.

“The Mexican state is already the majority partner, it has the management and administration of the company,” said Lopez Obrador, adding that the move will secure internet access in all cities and free Wifi in the cities. public squares, schools and hospitals.

Altan Redes has been developing the so-called Red Compartida (shared network) since 2016, part of sector reforms aimed at curbing the dominance of giant America Movil controlled by the family of billionaire Carlos Slim, and improving low levels of mobile telephony . telephone penetration and network coverage.

In March, the Mexican telecommunications regulator, the IFT, granted the company an extension of the 92.2% coverage compliance target until January 24, 2028 instead of 2024.

The company is expected to raise $250 million from lenders to allow the Mexican state to take over the program, Project Finance International reported Thursday. Public companies Banco Nacional de Comercio Exterior (Bancomext), Nafin and Banobras are providing combined financing of $150 million. The remaining $100 million comes from an agreement with telecommunications equipment suppliers Nokia and Huawei, and China Bank Corporation.

The debt will be converted into new shares in the public-private partnership (PPP) which will be owned by the Mexican state.