BT Americas Eyes Looks to Expand its Network into Mexico

by Istvan Fekete on November 27, 2014

BT Americas executives are eyeing Mexico, as they have met with telecom regulators to discuss how to take advantage of new laws in the country designed to promote competition and foreign investment.

According to Bloomberg, BT chief operations officer in the Americas Jennifer Artley and regional country manager for Mexico and Central America Jorge Marchena talked with Federal Telecommunications Institute President Gabriel Contreras and other commissioners last week about the company’s possible future plans in the area.

This shouldn’t surprise any telecom analysts, though, as the discussion comes at a time when Mexico’s dominant services provider, América Móvil, is looking to sell some of its telecom business as a way of reducing the company’s market share to below 50% with the aim of avoiding regulations applying only to dominant players.

From this perspective, it makes perfect sense for BT to deepen its presence in the country, particularly as it looks to broaden its holdings in the greater Latin American market. Over the past three years, BT has been aggressively expanding its network in Latin America.

America Movil SAB, Carlos Slim’s dominant landline and wireless carrier, is seeking to sell part of its network in Mexico as a result of the laws. U.S. operator AT&T Inc. announced a $2.5 billion acquisition of mobile-phone company Grupo Iusacell SA earlier this month as President Enrique Pena Nieto encourages more competition and investment in Mexico.

Axtel SAB, Mexico’s second-biggest landline operator, has also considered potential partnerships with local and international companies to consolidate and “more effectively compete in Mexico,” Chief Financial Officer Felipe Canales said on a conference call with analysts in July.
Back in September, the Mexican carrier opened talks with four potential companies – AT&T, Softbank, Bell Canada, and China Mobile – with plans to sell Telmex and Telcel for about $20 billion.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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