Mexico's telecom liberalisation continues

Author: Edward Price | Published: 1 Mar 2016

Mexican telecommunications companies Axtel SAB and Alestra have merged operations in a deal which closed on February 15. According to deal counsel, it represents the combined companies’ bid to compete, through new-found size, in Mexico’s liberalising telecoms market.

The two companies are based in Monterrey, an hour and a half from the US border. Axtel focuses on fixed-line services, such as internet, TV and landlines. Alestra is more corporate and consultancy-focused

"This merger is something that had been rumoured for quite a long time, because both companies were at a prime size for it," said Joy Gallup, partner at  Paul Hastings, who advised on the deal. "But it couldn’t have been done without those reforms."

The Mexican Congress passed legislation for telecommunications reform in 2014 in a key part of the liberalisation of Mexico’s economy. That trend has been evident for several years, but is now...