Telefonica and AT&T team up in Mexico against Carlos Slim´s telecoms emporium
Source：Reuters México
From：Taiwan Trade Center Mexico
Update Time：2020/01/16
Spanish telecoms giant Telefónica has struck a deal to use some of U.S. rival AT&T´s infrastructure in Mexico, a move analyst said would better position both to compete with the market´s juggernaut, billionaire Carlos Slim´s America Móvil.
Under the agreement announced, Telefónica will use AT&T´s wireless “last-mile” equipment – the final link of telecom networks that delivers service to consumer through towers, antennas and fiber-optic cables.
After a three-year transition period, Telefónica will see savings of US $253 million per year, as well as a reduction in net debt of US $550 million.
Analysts framed the deal as a lifeline for Telefónica in Mexico, where the company has long struggled to gain traction. Despite a 2013-2014 reform intended to lessen its dominance, America Movil still holds nearly 2/3 of the mobile lines in Mexico, according to data from telecoms regulator IFT.
AT&T, too, has failed to significantly dent America Movil´s market share since it spent billions to enter the country in 2015 by buying two local carriers.
The agreement will give both Telefónica and AT&T a boost in a brutally competitive market, said Roger Entner, an analyst at Recon Analytics.
Source：https://www.reuters.com/places/mexico