China Telecom Eyeing for Mexico Network

Published By : 20 Jan 2015 | Published By : QYRESEARCH

China’s third largest telecom operator, China Telecom, is reportedly gearing up to build and run a new mobile broadband network in Mexico. According to sources, the state-owned telecom companies in China are looking to partner with local operators across different nations to form a consortium. 

China Telecom Global, the international subsidiary of China Telecom is believed to have already secured funding worth billions of dollars from state controlled banks, including the China Development Bank. According to the estimate published by the Mexican government, the project will cost $10 billion over the course of 10 years. However, it is still not very clear that what proportion of funding would come from which sector because Mexico government currently has no plans to take a stake in the company that will run the network. 

In October 2014, the Mexican telecoms and transport ministry (SCT) and Federal Institute of Telecommunications (IFT) agreed to partner and take steps to have the network up and running by the end of 2018. Both SCT and IFT considered investments from both public and private sectors back then. 

The winning bidder will have a public-private partnership contract with the government. Under this contract the company will be allowed to capitalize on state infrastructure and enjoy concession up to the use of 90 MHz of spectrum in the 700 MHz band. Later it was revealed by SCT in October previous year that “six major telecoms suppliers” were conducting field tests in the 700 MHz band. 

Reuters in a previous report stated that Alcatel-Lucent and Ericsson had come forward to help a consortium of unnamed companies to bid to build the network. Apparently, the bid was rejected by SCT since accepting the same would have conferred added benefit to the consortium in the bidding process. 

Huawei, a popular Chinese infrastructure vendor, has expressed its interest in the project too.
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