Mexican government bails out struggling Altán Redes

Mexican government bails out struggling Altán Redes

Mexico president Lopez Obrador.jpg

The Mexican government will take a majority stake in Altán Redes after the telco after signed a US$388 million rescue package.

In a statement, the federal government detailed the structure of the bailout which involves a loan of US$161 million, a further US100 million from suppliers, US50 million from shareholders and US$10 million from clients.

"The Mexican state is already the majority partner, it has the direction and the administration of the company,” Mexico’s President Andres Manuel Lopez Obrador.

He added that the move will secure internet access in towns and free WiFi in public squares, schools and hospitals.

Altán Redes had been deploying its network into remote areas of Mexico in a bid to close the country’s digital divide, which was widened by the Covid-19 pandemic.

The telco had been developing an ambitious network plan, known as Red Compartida, to offer a shared network built for carriers delivering what was described as 4.5G LTE voice and data that allows for easier migration to 5G.

It had received a coverage extension by the Federal Telecommunications Institute (FTI), Mexico’s telecoms regulator earlier this year.

FTI said that the telco would have until January 24, 2028, to achieve its coverage of 92.2% of the population.