Major fibre company acquisition changes the competitive landscape in Mexico

Major fibre company acquisition changes the competitive landscape in Mexico

What does the purchase earlier this month of nearly 96 percent of Mexican facilities-based telecommunications provider Maxcom Telecomunicaciones by US-headquartered digital infrastructure service provider Transtelco mean for the Mexican fibre market?

As we reported at the time, the Transtelco bid was launched in September. Transtelco, based in Texas, now owns 95.55 percent of the Mexican company.

There’s no doubt that this deal will, as local reports have indicated, boost Transtelco in the Mexican market, extend its fibre presence and expand its customer base.

In addition, according to local news reports, there are obvious synergies to this deal. Having sold off its mass-market triple play business, Maxcom’s recent focus has been on the provision of data transport services, internet and last-mile fibre optic connectivity for corporations and governments. After the two companies’ assets have been combined, Transtelco will have a 25,000 kilometre fibre optic network throughout the US and Mexico.

A lot of Transtelco’s installed infrastructure is said to be on the border between the United States and Mexico. However, the purchase of Maxcom gives Transtelco a stronger presence elsewhere in Mexico, notably because Maxcom's fibre optic network has points of presence in some of the country’s largest cities.

The alliance also creates a competitor to brands with an established presence in Mexico. Transtelco remains some way behind Bestel, which has installed an estimated 70,000 kilometres of fibre in Mexico, though is now ahead of others, such as Neutral Networks and Centurylink.

Whatever else can be assumed, there is no doubt strong potential for Transtelco to challenge established players – and it seems the company has ambitions to do just that. It has stated that Transtelco and Maxcom's combined networks possess unique routes to move traffic to and from the United States, Mexico and the rest of the Americas.


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