America Movil, Telefonica Team Up on Undersea Cable
25 June 2019 - 6:55AM
Dow Jones News
By Suman Naishadham
MEXICO CITY -- Mexican telecommunications giant América Móvil
SAB (AMX) is partnering with Telxius, the infrastructure unit of
Spain's Telefónica S.A. (TEF), to lay over 4,500 miles of submarine
cable along the Pacific coast of Latin America from Guatemala to
Chile.
The companies said the high-capacity fiber optic undersea cable
will connect points from Guatemala to Chile, with additional
landing points in Ecuador and Peru, all of which are already in
place.
"This is part of the ongoing commitment of the two largest
telecommunication groups in Latin America to improve global
communications," they said in a joint release in which they
stressed the benefits of infrastructure sharing.
The companies didn't disclose how much they're investing in the
cable, which is expected to be ready by the end of 2020.
América Móvil, the flagship company controlled by Mexican
billionaire Carlos Slim, and Telefónica have for years competed
across Latin America, including a bitter rivalry in Mexico, América
Móvil's home market.
In January, América Móvil bought Telefonica's operations in
Guatemala for $333 million and agreed to pay $315 million for its
operations in El Salvador. The Salvadoran antitrust approval
process is continuing.
Write to Suman Naishadham at suman.naishadham@wsj.com
(END) Dow Jones Newswires
June 24, 2019 16:40 ET (20:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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