AT&T to invest $3 billion on expanding Mexico network
AT&T plans to invest around $3 billion in its high-speed mobile network in Mexico.
The company, which owns lusacell and Nextel, expects to cover 40 million people – about one-third of the population – in six months with the goal to reach 100 million by the end of 2018.
The announcement comes at a time of sweeping reforms which has forced billionaire Carlos Slim,, who controls America Movil to open up infrastructure in the country.
A large part of the overhaul involves a government plan to tender the building of a wholesale mobile broadband network that will require an estimated investment of $7 billion.
“We are building a network in Mexico that is capable of bringing innovation and economic vitality to the country, just as we have done in the US,” said Randall Stephensen, AT&T chairman and CEO.
Reforms introduced by President Peña Nieto, with support from the Mexican Congress and Instituto Federal de Telecomunicaciones (IFETEL), have given the operator the ability to invest in building the network in Mexico, he said.
“As we are now seeing in Mexico, business investment increases with thoughtful, responsible regulation. And when companies invest - whether in expansion or improved services for consumers and businesses - they create jobs. It is a simple, powerful formula.”
Mexico’s Ministry of Communications and Transport is set to auction 700MHz spectrum bands for the shared broadband network in October 2015. Winners of the auction are expected to receive licenses in the first quarter of 2016.