IFT approves Mexican Development Bank takeover of ALTAN Redes

23 Jun 2022

Mexico’s Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has approved the proposed financing arrangement between the Mexican Development Bank (Banobras, Nafin and Bancomext) and ALTAN Redes (Red Compartida), which will result in the latter becoming a public-private partnership (PPP). The Mexican Development Bank will loan ALTAN Redes USD161 million, while other shareholders will provide loans worth USD50.5 million.

As a result, ALTAN Redes’ shares will be contributed to a Trust, which will be 61%-owned by the Mexican Development Bank and 39%-owned by the other shareholders. The Mexican Development Bank will have the right to appoint the majority of the members of the Board of Directors, while its percentage of trustee rights will gradually decrease and revert in favour of the other shareholders as the credit is paid off.

The IFT notes that the term of the PPP contract has been modified, from 20 years (with the possibility of extension) to 40 years (without the possibility of extension). Further, the watchdog has reiterated the coverage milestones approved in February 2022: 85% by 24 January 2027 and 92.2% by 24 January 2028.

TeleGeography notes that Red Compartida launched its open access 4G network in March 2018. A total of 114 MVNOs are now offering connectivity via the 700MHz network, while 81% of the subscriptions are mobile users and the other 19% correspond to fixed wireless access (FWA) accounts. Red Compartida currently offers coverage to 70.97% of the population.

Mexico, ALTAN Redes (Red Compartida), Instituto Federal de Telecomunicaciones (IFT)