Fibre-optics beckons Mexican Telcos

MEXICO: A consortium of two Mexican media giants and Spain's Telefonica expects to invest 2.4 billion pesos ($186 million) in a fiber-optic network, if the Mexican government grants it a concession next month, an executive said.

The consortium -- which also includes Televisa, the world's largest Spanish language media company, and Megacable, Mexico's top cable provider -- is the sole bidder for the 20-year concession.

The Mexican government is trying to spur competition in the country's telecommunications sector, which is dominated by billionaire Carlos Slim, by auctioning off unused fiber-optic capacity belonging to the state-run Federal Electricity Commission.

The winner will be announced on June 9.

Enrique Yamuni, director general of Megacable, told Reuters the expected investment included what the group anticipated paying the government for the concession.

Yamuni said in early May that if the consortium is successful the cables will be operational in the first half of 2011.

The three companies have an equal stake in the consortium.