Mexican fixed line operator Maxcom will spend USD60 million to expand its network in 2006, the telco’s CEO René Sagastuy told BNamericas. Maxcom successfully completed an USD14.1 million bond placement on the local market in July 2005 and received USD40 million in credit from banks over the course of the year, which Sagastuy said will cover the investments. Much of the money will be put towards expanding Maxcom’s broadband and triple-play services.
Maxcom launched local, long-distance and international services in Mexico in April 1999. Whilst its shares of the long-distance and international markets are negligible compared to those of Avantel and Alestra, it has made more progress in the local telephony market than either of them. Although the telco has a licence allowing it to offer services nationwide, it has concentrated its business in the urban markets of Mexico City, Querétaro and Puebla. At the end of September 2005 Maxcom had 199,476 lines in service, 149,092 of which were for residential customers and 34,047 for corporate users. It expects to have 500,000 lines installed by 2010.