CAF promotes Mexico’s competitiveness supporting the ALTAN Redes shared telecommunications network

CAF-development bank of Latin America- signed a long-term loan with ALTAN Redes for USD 50 million to promote the design, installation, deployment, operation, maintenance and updating of the shared telecommunications network in Mexico, which is already fully operational, as well as the marketing of a mass telecommunications service.

The shared network includes the use of the 90-MHz frequency in the 700-MHz band—the most powerful frequency band—, currently under lease, as well as the rights of use over a pair of TELECOM fiber-optic wires, for a renewable term of 20 years. The new mass service will offer 4G-LTE coverage to at least 103.5 million Mexicans (92.2% of the population) and will allow operators to provide telecommunications services with cutting-edge technology to carry top quality voice, data and video nationwide, including populations not covered by existing networks. The network was commissioned on March 21, with a coverage of 32.2% of the population, i.e. 36.1 million, 5.8 million of them in towns with less than 10,000 inhabitants.

During the signing of the operation agreement with the director general of ALTAN Redes, Javier Salgado, CAF representative in Mexico, Emilio Uquillas Freire, highlighted that “this project has several positive effects on connectivity as one of the key aspects of competitiveness and productivity for the nation. Such initiatives funded by CAF contribute to the democratization and access to telecommunications services, while having an impact on promoting greater competition and supply of such services. This builds a platform so that a greater number of citizens have access to all services that will undoubtedly improve their well-being. In addition, the financial instruments needed to make this initiative a success require efforts of both the public and private sector to facilitate deployment, development and efficient use of the connectivity infrastructure in the country, which is consistent with CAF’s promotion of increased productivity and sustainable development.”

The shared network will feature an innovative and non-discriminatory mass mobile telecommunications model, and will promote digital economy ecosystems and public-private articulation, with an emphasis on the creation of higher added value, more qualified labor and training of human resources to increase productivity and competitiveness in all sectors of the Mexican economy.