Mexican wireline operator Axtel has reported a 25% rise in revenues for 2005, on the back of a 34% increase in its lines in service. The telco ended 2005 with 605,904 lines, up from 453,519 the year before, pushing annual revenues up to MXN4.967 billion (USD468.8 million). Local services accounted for MXN3.567 billion of total turnover, whilst long-distance revenues contributed MXN451.9 million. Operating income reached MXN598.6 million, up from 260.7 million in 2004.
Mexican-owned Axtel entered the long-distance and international call markets in 1997, and it launched FWA local telephony services in Monterrey in October 1999, in Guadalajara in February 2000 and in Mexico City three months later. It added León, Puebla and Toluca to the list in 2001. The company’s expansion stalled until 2004 when it announced that it would be investing USD145 million during the year to install fixed wireless networks in six additional cities. Services were introduced in Querétaro and San Luis Potosí in early July, with launches in Tijuana, Ciudad Juárez, Aguascalientes and Saltillo following several months later. Axtel says it targets markets where there is little competition in the local telephony sector other than Telmex; it plans to have networks in 30 to 40 cities by the end of 2007.