You are here: Home » International » News » Companies
Business Standard

Telefonica inks contract to use AT&T last mile network in Mexico

Both companies compete in Mexico with America Movil, the company controlled by billionaire Carlos Slim, which has long dominated the telephone market in Latin America's no. 2 economy

Reuters 

mergers
Photo: Shutterstock

has signed a contract to use the so-called last-mile network of its U.S. ival in Mexico, the local chief executive of the Spanish telecommunications company said on Thursday.

Mexico CEO Camilo Aya said the deal with was not exclusive and that the Spanish company's traffic would remain completely separate from that of its U.S. competitor.

Both compete in Mexico with America Movil, the company controlled by billionaire Carlos Slim, which has long dominated the telephone market in Latin America's no. 2 economy.

Aya said the agreement was part of a trend that was taking place globally to better position against rivals.

"You need a lot of scale to compete in this business," Aya told reporters at an event in Mexico City.

Miguel Calderon, vice president of regulation at Mexico, said the deal would ensure the firm remained in Mexico.

The company was open to working with the Mexican government on its telecom projects, Calderon added.

First Published: Fri, November 22 2019. 02:18 IST
RECOMMENDED FOR YOU