Mexico receives first bid for state-owned mobile network

Mexico receives first bid for state-owned mobile network

Mexico has received its first bid from a consortium to build out a state-owned mobile network worth $10 billion.

The country’s government is estimating it will require an investment of approximately $10 billion over 10 years, and said it will pick its winner for the build out in mid-2015.

As part of Mexico’s widespread reforms, the country is planning to build the network to break up América Movil’s dominance of the market.

Sources said the consortium, which remains private, used vendors Alcatel-Lucent and Ericsson to craft the proposals, and both companies could play a key role in the construction of the network if the bidder is successful.

Mexico’s telecommunications and transport ministry (SCT) has confirmed it has received a proposal, and the bid is seen as a major milestone in the government’s efforts to promote competition in Mexico.

Rivalling players Iusacell and Telefónica are set to benefit from the build out of a new network as it will give both companies additional coverage. They will, however, not bear the cost of building out the networks, and a mobile network could also attract MVNOs.