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Thread: Report: Telefonica, Under Pressure from AT&T, Mulling Mexico Exit

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    Report: Telefonica, Under Pressure from AT&T, Mulling Mexico Exit

    https://www.wirelessweek.com/news/20...ng-mexico-exit

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    More than 15 years after it first entered the market south of the border, Telefonica is reportedly mulling an exit from Mexico amid increasing pressure from competitors like AT&T.

    According to digital Spanish newspaper VozPopuli, the telecom giant isn't hiding the fact that it's looking for an out from a market where it is third out of three major operators.

    As of the end of the first quarter 2017, Telefonica Mexico had 25.7 million subscribers in the country, a figure that was virtually flat year over year. The carrier posted net losses of 899,000 in Mexico during the quarter, mainly in the prepaid segment, and revenues of 314 million euros dropped 16.5 percent year over year. While the carrier did grow access on smartphones and LTE service in the quarter, penetration stood at only 48 percent for smartphones and just 15 percent for LTE access in the period.

    The report indicated these sliding figures come courtesy of pressure from new market entrant AT&T and an America Movil brand that has become more aggressive in the wake of movement by Mexican regulators to break up its former dominance of the wireless market.

    AT&T purchased Mexican operator Iusacell for $2.5 billion in 2014 and combined it with its other Mexico operator acquisition Nextel. By August 2015 AT&T had already ramped up its rebranding efforts in the country and announced plans to invest $3 billion to expand wireless coverage to 100 million people in the country by 2018.

    AT&T has found success in the country, most recently adding 633,000 subscribers in Mexico during a quarter in which it lost 348,000 postpaid phone subscribers in the United States. The carrier is nowalso planning IoT network roll outs south of the border in an effort to snag a large share of that segment as well.
    “The Internet wasn’t meant to be metered in bits and bytes, so it’s insane that wireless companies are still making you buy it this way. The rate plan is dead — it’s a fossil from a time when wireless was metered by every call or text.” John Legere 1/5/2017

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    Should AT&T just buyout Telefonica?

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    Makes sense their network sucks in comparison to AT&T MX and Telcel. They should sell it to AT&T MX. Their network was like using Sprint in the US, too many drops to 3G or EDGE and its LTE was super congested.

    Sent from my SM-G950U using Tapatalk

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    Sounds like a good opportunity to "uncarrier" themselves.

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    Quote Originally Posted by @TheRealDanny View Post
    Should AT&T just buyout Telefonica?
    I think they should it's not like they're doing anything with the network in Mexico anyway

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    Remember, the Mexican government wants to increase competition. Don't think they'd be too happy to see AT&T MX and Movistar merge to end up with just two incumbent carriers. Movistar is just out of money - much like Sprint but worse financially. They have the cheapest customers and their revenue is collapsing, while Telcel and AT&T are investing big money into their networks. They have good geographic coverage, it's just a matter of having to invest the network to make it "data strong." Too much 2G out of the cities, for example, and their backhaul for LTE seems to blow. Good spectrum, especially PCS and 850. If they won't allow a merger, perhaps a sale to someone with money and a network sharing agreement like some Canadian carriers do?
    Carriers I've used: Sprint, T-Mobile, Cricket, AT&T, Verizon, Page Plus, Virgin Mobile, Movistar, AT&T Mexico, Telcel, Straight Talk, RingPlus.
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    Quote Originally Posted by Volaris View Post
    Remember, the Mexican government wants to increase competition. Don't think they'd be too happy to see AT&T MX and Movistar merge to end up with just two incumbent carriers. Movistar is just out of money - much like Sprint but worse financially. They have the cheapest customers and their revenue is collapsing, while Telcel and AT&T are investing big money into their networks. They have good geographic coverage, it's just a matter of having to invest the network to make it "data strong." Too much 2G out of the cities, for example, and their backhaul for LTE seems to blow. Good spectrum, especially PCS and 850. If they won't allow a merger, perhaps a sale to someone with money and a network sharing agreement like some Canadian carriers do?
    Red Compartida addresses both of your concerns. Even if AT&T buys Movistar, there will be other entrants who will use the "wholesale network", somebody builds the network and potential entrants will use that network. Network sharing is another feature of "Red Compartida".

    Ever wonder why AT&T wasn't too happy about this Red Compartida proposal from the Secretaría de Comunicaciones y Transportes? That's because anybody who wants to participate in the Red Compartida program needs to prove that they don't have any operations or ties to an existing mobile provider Mexico.

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    I've been saying for awhile that AT&T North America prepaid net additions (Mexico + US) has been largely ignored, pretty much blowing out T-Mobile's prepaid nets because they've decided not to be a player down there.

    While some might argue this is not apples-to-apples, there's no denying a bordering country with millions of mobile customers provide added leverage and allure for AT&T. The growth numbers confirm it.

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    Quote Originally Posted by actinic View Post
    I've been saying for awhile that AT&T North America prepaid net additions (Mexico + US) has been largely ignored, pretty much blowing out T-Mobile's prepaid nets because they've decided not to be a player down there.

    While some might argue this is not apples-to-apples, there's no denying a bordering country with millions of mobile customers provide added leverage and allure for AT&T. The growth numbers confirm it.
    They do, so this is why I'd like to see AT&T purchase Movistar and give Movistar customers a better experience.

    Sent from my SM-G950U using Tapatalk

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