Mexican joint venture aims to boost competition

A new network infrastructure joint venture between two major telecom players is set to provide new services in Mexico. The project – the result of a long-anticipated collaboration between  Telefonica and Iusacell – will “generate a better alternative for all Mexicans”, according to a statement.

The two firms have declared their intention for the joint venture to bring rural regions of Mexico up to speed with the technology currently available in urban areas, readying them for the future deployment of LTE.

The firms will offer services as an alternative to the dominant Mexican operator Telcel - a subsidiary of America Movil – which holds 70% of the market. Iusacell’s director general Adrian Steckel has stated that the JV will be “in favour of competition and against the existing monopoly”.

While the two partners will manage their spectrum independently of each other, some of the rollout expenses will be split. Telefonica is seeking to reduce its expenses through partnerships as a means of offsetting its declining performance in Europe. The firm recently entered into a network sharing agreement with Vodafone UK.

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