Telefonica is in talks to rent mobile tower space in Mexico from America Movil’s (AM’s) recently spun-off Telesites unit, Bloomberg reports, citing people with knowledge of the matter. If an agreement can be reached, Telefonica’s Movistar Mexico unit will gain access to the country’s single largest wireless network, which encompasses around 10,800 towers. The development follows June reports that AT&T – which completed the dual acquisition of Iusacell and Nextel earlier this year – is working on a separate deal to rent towers from Telesites.
As previously reported by TeleGeography’s CommsUpdate, in April this year AM announced that 98.2% of its shareholders voted in favour of the spin-off plan, which represents part of a restructuring programme that the Carlos Slim-backed company devised last year in response to strict regulations designed to curb its local market dominance. The spin-off created Latin America’s second largest wholesale supplier of tower space, after American Tower Corp, Bloomberg claimed at the time.