Mexican Development Bank cleared to provide funds to ALTAN Redes

Mexican Development Bank cleared to provide funds to ALTAN Redes

Mexican regulator IFT (Instituto Federal de Telecomunicaciones / Federal Telecommunications Institute) has cleared a financing deal that will see ALTAN Redes (Red Compartida) become a public-private partnership funded by the Mexican Development Bank.

Under the financing structure, ALTAN Redes will receive a loan of US$161 million from the Mexican Development Bank, alongside US$50.5 million from its other shareholders. Accordingly, the wholesale operator’s shares will be places into a trust in which the Mexican Development Bank will take a 61% holding, while the other shareholders will own 39%.

CommsUpdate reported that the Mexican Development Bank will have the highest portion of trustee rights, granting it the most power over appointments to the operator’s Board of Directors. However, as the loan is paid back its share of trustee rights will reduce gradually, with the other shareholders eventually taking the lion’s share.

The IFT stated that the length of the public-private partnership contract had been amended from 20 years (with the option to extend) to 40 years (without this option). The regulator also confirmed that the coverage obligations originally agreed in February 2022 remain in place, meaning the operator’s network must cover 85% of the population by 24th January 2027 and 92.2% by 24th January 2028.

Red Compartida’s open access 700MHz 4G network has been available across Mexico since March 2018, and is currently used by 114 MVNOs to provide mobile and fixed wireless access services. At present, the network covers 70.97% of the population.

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