ALTÁN Redes launches operation of Red Compartida, surpassing its coverage commitments

Mexico City, Mexico, March a 22- ALTÁN Redes is pleased to inform that Red Compartida has launched operations, fulfilling and exceeding the commitments established for the delivery of the first milestone set forth in the provisions of the Public-Private Partnership Agreement (PPP) signed on January 24, 2017.

In the presence of the President of the Republic, Enrique Peña Nieto, who yesterday inagurated the Red Compartida in the Center of Operations of the Network (NOC) of ALTÁN in Mexico, the Chairman of the Board of Directors of ALTÁN Redes Bernardo Sepúlveda Amor stressed: “The constitutional mandate, emanating from the Telecommunications Reform, is coming to fruition with the operation of Red Compartida, whose aim is to reduce the digital divide in Mexico.”

A year and two months ago, ALTÁN Redes signed the PPP Contract with the Telecommunications Investment Promotion Agency (PROMTEL) allow the project to commence formally and exploit 90 MHz within the 700MHz spectrum, as well as two fiber optic lines of the Federal Electricity Commission (CFE) for the development, using 4G-LTE technology, of a modern mobile broadband network to connect 92.2% of the population of Mexico.

ALTÁN initiated the deployment of the network on April 1, 2017, and in just 11 months it has managed to attain and surpass the first coverage target provided in the APP contract in record time, truly a major success story considering the size of the territory and number of people who will be enjoying coverage.

Mexico City, Monterrey, Guadalajara, Toluca, Querétaro, Puebla, Morelia, Colima, Tepic, Aguascalientes and Celaya, as well as 29 Pueblos Magicos, are the first to have access to the infrastructure, and where telecommunications operators and traders can now offer the benefits of the Red Compartida to end users, either through mobile services or through wireless internet in the home or business.

ALTÁN’s wholesale network services for voice and data will be offered in a shared, universal, continuous, neutral and non-discriminatory manner to other companies, so that they provide end users with greater coverage, capacity, connectivity and at the best cost per gigabit in the market.

Pursuant to the provisions of clause 15 of the APP contract, PROMTEL authorized commencement of commercial operations of the Network on March 15, notifying, after all due verification diligences, that ALTÁN has fulfilled the 30% coverage target within the deadline.

Specifically, ALTÁN launches operations providing coverage to 36 million people, including 5.6 million in localities of less than 10 thousand inhabitants, thereby confirming the inclusive nature of the network.

Coverage also includes 29 Pueblos Magicos known for their dependence on tourism across 12 different states.

Executive Vice-President of ALTÁN Redes Eugenio Galdón stated: “With this first installment, ALTÁN Redes is serving Mexico and will continue to work tirelessly to achieve the goal of 92.2% population connectivity by 2024.”

The contractual commitment calls for than 100 million Mexicans to enjoy the speed, low latency and coverage of Red Compartida at competitive prices and with the same quality guarantee provided in the contract.

The next coverage milestone calls for 50% of the population by January of 2020, which shall include fully 50% of the Pueblos Magicos.

At the economic level, it is also important to note, that the Red Compartida will create 900 direct jobs and more than five-thousand indirect jobs, as well as direct and indirect investment of 8.1 billion pesos, while meeting connectivity and social expectations, because more and more people will benefit in Mexico by the Red Compartida, the Network for Everyone.

Connect with the Shared Network

In the span of two years the most transformative project in the field of telecommunications came to fruition.

2016

January 29

SCT issue international Tender for the Red Compartida.

October 20

Consortiums submit technical and financial bids.

November 17

ALTÁN Redes is awarded international public tender for the design, deployment, operation, and maintenance and updating of the Red Compartida.

2017

January 24

Public-Private Partnership Contract with PROMTEL and Telecomm is signed.

March 31

The financing of the project is concluded and deployment of the Red Compartida begins.

2018

January 3

IFT issues a technical provisions for LTE mobile terminal equipment, requiring these enable the band 28 (700 MHz) which the shared network employs

February 27

IFT Approves Public Benchmark Offer of ALTÁN Redes, allowing the commercialization of products and contracts with customers.

March 15

Authorization to launch commercial operations of the Red Compartida.

March 21

Validation of the obligation to provide coverage to 30% population and 25% of the Pueblos Magicos comprising the first milestone.

Inauguration of Red Compartida operations by President Enrique Peña Nieto, 10 days before the contractual deadline.

About ALTÁN Redes

ALTÁN Redes, S.A.P.I. de C.V. is a Mexican company comprised of a multinational consortium, winner of the international Red Compartida public tender. Among its investors are some of the leading infrastructure investment funds in the world, such as Morgan Stanley Infrastructure, the International Finance Corporation (IFC), the China-Mexico Fund (managed by the IFC), the Canadian pension fund CDPQ and the Mexican afores grouped under CKD IM and FFLatam; as well as with Mexican partners and industrial, institutional groups of great prestige such as Axtel, Megacable, Hansam and Grupo Multitel, the latter a strategic partner. ALTÁN is prepared to fulfill all its commitments, carry out the full deployment of the shared network and operate it in accord with the parameters stipulated.

About the Shared Network

Red Compartida is one of the most important telecommunications projects to be deployed in recent years in Mexico. It is a modern, wholesale, neutral and non-discriminatory mobile broadband network in the 700 MHz bandwidth, which shall provide advanced 4G-LTE telecommunications services to at least 92.2% of the Mexican population. Its implementation is executed through the auspices of a Public-Private Partnership with the authorization of the SCT signed between ALTÁN Redes and the Telecommunications Investment Promotion Organization (PROMTEL). The project is 100% private financed.

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