Telefonica considers joint bid on Mexican fiber auction

To challenge Mexico's telecom monopoly Telmex for network backbone capacity, Telefonica is considering an alliance with other competitive and even regional cable operators to bid on the Mexican government's sale of two fiber strands owned by the country's electric monopoly Comision Federal de Electricidad (CFE).

With this fiber network, Telefonica and other telecom operators will be able to bypass Carlos Slim's Telmex, which currently controls 80 percent of Mexico's wireline market, for their backbone capacity. Although no formal arrangement has been announced, Mexican cable operator Megacable's management said they would partner with Telefonica, broadcaster Televisa and other smaller area service providers to jointly bid for the fiber strands in the government-run auction.    

"We may go together," said Francisco Gil, head of Telefonica's Mexico operations in a Reuter's article. "There could be a consortium."

For more:
- Reuters has this article

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