In order to break what is being seen as the ‘Mexican monopoly', Telefónica has signed agreements with the country's audiovisual giant Televisa and the cable operator Megacable to control a fibre network of more than 19.400 km.
According to Mexican newspaper 'El Mundo', the deal could be in the region of Euro53.5 million and may also involve Telefónica buying other small Mexican telcos to strengthen its presence in the region’s broadband market.
Also the Spanish telco is believed to be trying to place its mobile and broadband brand Movistar in Mexico by acquiring new mobile frequencies, an operation for which the Spanish company is said to have paid some Euro254 million.
Spain's main telco already has an important presence in Mexico with 18.3 million clients in a country with some 107 million inhabitants. It also occupies first place in Brazil's telecommunications market with its recent buy out of Portugal Telecom's Brazilian subsidiary Vivo.