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Mexico's Axtel to become virtual operator on Slim's network

Published 03/18/2015, 10:05 PM
Updated 03/19/2015, 01:10 PM
© Reuters.  Mexico's Axtel to become virtual operator on Slim's network

MEXICO CITY (Reuters) - Mexican telecommunications company Axtel will become the first virtual operator on billionaire Carlos Slim's mobile network, Axtel said in a statement on Wednesday.

The arrangement came about as part of talks that ended a long-standing dispute about interconnection charges between Axtel and Slim's America Movil.

Axtel said it received 950 million pesos ($62.81 million) for agreeing to end those disputes.

A reform to Mexico's phone and television businesses paved the way for mobile virtual network operators (MVNOs) in the country.

Telefonica (MADRID:TEF)'s Movistar network has drawn the most new operators, including Virgin Mobile.

The 2013 reform also brought in rules to prevent America Movil from charging competitors for connecting to its network, rendering moot many outstanding legal claims against Slim's company and leading to the settlement of Axtel's claims, which dated to 2005.

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