Project

DESIGN, CONSTRUCTION, MODERNIZATION, EQUIPMENT, INSTALLATION, OPERATION, MAINTENANCE OF THE SHARED TELECOMMUNICATIONS NETWORK AT A NATIONAL LEVEL.

Sector: Telecommunications


Last Revision

October 25, 2024
Short Name of the Project:
0369 Public Shared Telecommunications Network
Type of Investment:
Brownfield
Subsector:
Telecommunications Network
Asset (s):
 Electromagnetic Spectrum 90 Mhz-4G 
Contract Currency:
Mexican Pesos MXN
Estimated Investment MXN:

7,500,000,000

Estimated Investment USD:

438,596,491

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2024: $ 17.1
Contract Scope:
  Design,  Construction,  Modernization,  Equipment,  Installation,  Operation,  Maintenance

DESCRIPTION

Installation of a shared network that increases coverage nationwide for the commercialization of telecommunications services, raising its quality to international standards to:
a) optimize the use of the assigned spectrum,
b) reduce costs, and
c) increase coverage in regions lacking the service.

For its operation, the Federal Institute of Telecommunications (IFT) directly assigned a radio spectrum of 90 MHz in the 700 MHz band and a pair of fiber optic strands from the backbone network provided by Financiera para el Bienestar (formerly Telecomunicaciones de México, TELECOMM).

The developer will be responsible for:
- Obtaining the required funding.
- Providing the necessary assets.
- Obtaining the required permits and licenses.
- Operating the network.
- Maintaining the optical fibers provided by Financiera para el Bienestar.
- Absorbing maintenance costs.
- Obtaining the wholesale concession from the IFT.
- Assuming all risks arising from the execution of the project.
- Assuming environmental risks
- Assuming all regulatory compliance risks, related to the development of the project.
- Assuming financial risks (interest rate, exchange rate risk, etc.)
- Covering increased costs related to the project execution.
- Assuming risks due to unforeseeable circumstances or force majeure.

LEGAL AND FINANCIAL STRUCTURE

Type of Project
  Public / Private
Type of Contract
  Federal PPP
Term
40 years
Selection Process
International Open Tender
Financing Sources
Private
100 %
MXN
7,500,000,000
USD
438,596,491
Payment Source
Project revenues / Rate
Revenues received by the developer from:
a) The operation of the shared network (broad band).
b) The lease to third parties of the optical fiber.
c) Sale of telecomm services by using the existing infrastructure (optional)

STATUS

Stage
  Operation
Substage
  > 5 years of operation
RELEVANT DATES
Ministry of Finance Registration or equivalent September 30, 2015
Request for proposals/Announcement January 29, 2016
Proposals Reception October 20, 2016
Ruling November 17, 2016
Contract Signing January 24, 2017
Execution/Construction Starting Date January 27, 2017
Operation Starting Date March 21, 2018
Term of the Contract 2058
Contractor
Altan Redes  
Major Contractor’s Shareholders
Axtel, Megacable Holdings, Morgan Stanley

GEOLOCATION

State(s)
The whole country   

SPONSOR

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Entity
Organismo Promotor de Inversiones en Telecomunicaciones
Department
Unidad de Evaluación Ejecución y Estudios Económicos
Contact
Marcial Hernández Quintana
E-mail
marcial.hernandez@promtel.gob.mx

SUSTAINABLE INFORMATION

PROJECT’S SUSTAINABILITY SUMMARY

The project will generate investments from other operators and will create more jobs and benefits for society. The risks related to the development of the project were identified and validated, as well as the companys environmental and social management policies and procedures and will cover, among other topics, the conservation of biological diversity.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

ADDITIONAL INFORMATION

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Source
Unidad de Inversiones (SHCP)
Description
Administrative office of the Ministry of Finance that, among other attributions, is responsible for concentrating and managing the pipeline of programs and projects submitted by the entities of the Federal Public Administration.
ID
15094000001
Website
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Source
Secretaria de Hacienda y Crédito Público
Description
The Ministry of Finance and Public Credit's mission is to propose, direct and control the Federal Government's policy on financial, fiscal, expenditure, income and public debt, with the purpose of consolidating a country with quality, equitable, inclusive and sustained economic growth.
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Source
Transparencia Presupuestaria
Description
Digital platform used to monitor public expenditure, as well as the execution of public works throughout the country.
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Source
Organismo Promotor de Inversiones en Telecomunicaciones
Description
Decentralized organization, whose purpose is to promote the expansion of telecommunications infrastructure in the country to deliver services such as mobile telephony and broadband to more places, more people and with higher quality.
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Source
Federal Institute of Telecommunications
Description
Institute in charge of regulating, promoting and supervising efficient development in the broadcasting and telecommunications sectors in Mexico.
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Source
Concessionaire / Related Company

MULTIMEDIA

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REMARKS

The estimated investment amount refers to the minimum approved/committed investment.
The work execution date is an estimated date.
The Developer must comply with the following coverage milestones:
- At least 30% coverage, no later than March 31, 2018.
- At least 50% coverage, no later than the third anniversary of the contract (2020).
- At least 70% coverage, no later than the fifth anniversary of the contract (2022).
- At least 85% coverage no later than January 24, 2027.
- At least 92.2% coverage no later than January 24, 2028.

The Shared Network will sell all its capacities and services in a disaggregated and non-discriminatory way, exclusively to operators with infrastructure and to virtual operators (concessionaires and marketers).

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