Photo credit: Fiber Optic Ends by Barta IV

It took over 10 years to Comisión Federal de Electricidad (CFE), Government company of power distribution, to deploy 15,000 miles of optic fibre inside its infrastructure. On 2010, CFE granted under lease a minor portion of the backbone to a JV formed of Telefónica-Televisa-Megacable, through a public tender.

At the begining of the current Administration, it was announced that Telecommuncaciones de México (TelecomMexico), the state-owned company operating satellite services, money wires and telegraphy, will receive ownership of this backbone, as it was in the process of getting a telecom license.

However, this plan had a twist and Ministry of Communications just announed that CFE will pass to TelecomMexico to co-operate with private operator through a PPP, but only for wholesale.

As IFETEL, with current antitrust telecom authority, shall oversee the process, and decide who is elegible for participating into the tender. It appears to offer a clear window of opportunity for new entrants. Why? Because current players could have a severe scrutiny and/or assimetric regulation, based on their possible conflicts of interest while serving capacity to rivals. That is a clear cue for a pitch.

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