China Telecom Studying Billions Investment in Mexico

According to Reuters news, China Telecom has confirmed it is studying an investment in Mexico, which is rumored to involve tendering for the $10 billion government-led mobile broadband network project.

Parent entity China Telecommunications Corporation stated to Reuters that the company is conducting a preliminary study into an investment opportunity in Mexico.

The statement was in response to another Reuters report suggesting that China Telecom plans to form a consortium to bid for the mobile broadband network project. The report also asserts that China Telecom has already lined up several billion dollars in financing from Chinese banks.

China Telecom has not confirmed these specific details, but only acknowledged that it is pursuing an investment in the market.

The Mexican government has announced plans to build a nationwide mobile broadband network to help improve the nation's broadband penetration and break telecom magnate Carlos Slim's stranglehold on the market.

Slim's America Movil controls around 80% of the fixed line market and 70% of the mobile market, but the government wants to reduce its share to around 50%.