Mexico's
Mexico's "Red Troncal" project

Mexico's "Red Troncal" project

General Guidelines for the Red Troncal Project

On July 17, 2017, Telecomm issued preliminary general guidelines for the Red Troncal Project. This document outlined the general criteria through which Telecomm seeks to obtain feedback from interested participants prior to the release and publication of the tender process guidelines.

Overview of the guidelines

The preliminary guidelines confirm that the Red Troncal will be a wholesale network, allowed to render services only to concessionaires and resellers (such as mobile network operators, fixed network operators and fixed and mobile virtual operators).

A public partnership agreement will be signed with the winning bidder, who will receive rights to use a pair of fiber optic strands owned by CFE and access to hotels and rights-of-way.

The winning bidder will expand the network and be bound to, among others: (i) pay a specific to-be-determined fee to Telecomm; (ii) provide all studies, analysis, properties, rights, infrastructure, equipment and other material and manpower that may be required for the project; (iii) pay maintenance fees for the rights of use of the illuminated optic strands; and (iv) obtain any permit or authorization to use the passive infrastructure and additional rights-of-way required to install, deploy and operate the project.

A telecom license to render broadband access services will be granted for 30 years (and may be renewed for equal periods thereafter). If spectrum is considered necessary to be used for the last mile connections, a separate license shall be obtained.

Schedule of the Red Troncal Project process

  • July 17, 2017 to August 21, 2017: Interested parties may provide comments and proposals (not binding for Telecomm) to improve, refine or clarify the rules of the proposed competitive tender process.
  • August 28, 2017 to January 22, 2018: Telecomm will review the comments and proposals provided by the interested parties and publish the pre-guidelines of the proposed competitive tender process; afterwards, the interested parties may comment and propose the pre-guidelines once again.
  • January 22, 2018: Telecomm to publish definitive rules of the proposed international public competitive tender process and the form of public partnership agreement to be awarded.
  • June, 2018: Tender award.

Pending information to be determined for the Project:

  • Clarity of the current status of the network and expected construction work for expansion
  • Clarity of expected coverage and timeframe
  • Clarity as to whether the Mexican development banks will finance the Project
  • Clarity as to the events where the profit margin may be limited
  • Clarity as to whether existing telecommunication concessionaires may participate (directly or indirectly) in the Project

 

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