Nearshore Americas

Televisa Buys Axtel Optic Cables

Mexican broadcaster and cable TV provider Grupo Televisa has acquired a part of Axtel’s residential fiber-to-the-home (FTTH) business for around US$24 million, bolstering the operations of its internet services unit Blue Telecomm in 6 major cities across the country.

The 4,432 kilometers of fiber optic network that Televisa is taking over is reportedly serving more than 227,802 residential and micro-business customers in Mexico City, Zapopan, Monterrey, Aguascalientes, San Luis Potosí, and Ciudad Juarez.

“The assets acquired comprise 553,226 revenue generating units, consisting of 97,622 video, 227,802 broadband, and 227,802 voice revenue generating units,” Televisa stated in a press release.

Axtel is selling off its assets one after another in a bid to reduce its mounting debt. The operator sold more than 140 telecommunications towers a year ago.

“The net resources obtained from the transaction will be used to reduce the company’s liabilities, helping to reduce financial expenses,” reported Mexican papers quoting Axtel’s CEO Rolando Zubirán Shetle as saying.

Axtel, struggling to protect its marketshare from the likes of America Movil, may also look for a buyer for its other fiber optic assets, say analysts, adding that the company has decided to focus on business and government customers. Axtel’s residential business contributes about 18% of its revenues.

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Televisa is hoping to strengthen its triple play service, which includes broadband internet access, payTV, and telephony.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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