AT&T Mexico agreed to provide last-mile mobile access to Telefonica Movistar for a period of at least eight years, as the latter undertakes a structural transformation of its business in the country.
The deal includes nationwide access to 3G and 4G services, as well as “any future access network technologies”.
Under the agreement, Telefonica Movistar will gradually shift its traffic to AT&T Mexico’s access network, but will independently maintain its own transport network and platforms. It will also retain sole operational control over its client portfolio, assets, administration, pricing, rates and billing systems, among other things.
Financial terms of the deal were not disclosed.
Camilo Aya Caro, who replaced long-time chief Calros Morales Paulin as CEO of Telefonica Movistar in August, said in a statement the arrangement will allow it to focus on delivering “innovative, simple and transparent solutions that guarantee the best service experience to our customers”.
Telefonica said the new model is expected to yield significant operational and financial efficiencies. Within three years, the change is expected to generate an annual positive impact on cash flow of approximately €230 million. It will also help the company slash net debt by approximately €500 million.Subscribe to our daily newsletter Back