At the end of 2019 Telefónica Movistar advertisement the signing of an agreement with AT&T in Mexico to use its network. The idea, at that time, was to use AT&T’s infrastructure for about eight years, and with this strategy Telefónica hoped to save some 230 million euros from the third year.
And the alliance has been a success for both companies. So much so that Telefónica Movistar México and AT&T have announced that They extend the agreement until 2030which will allow Movistar to continue accessing AT&T’s wireless last mile capacity for at least 6 more years.
AT&T and Movistar extend the agreement, but they will still remain competitors
Since both companies signed the agreement in November 2019, AT&T México is responsible for providing Telefónica Movistar México with its capacity in its 3G, 4G and even 5G access network. This has been the case since Movistar began migrating its traffic to AT&T’s access network, in 2020.
Now, The agreement has been extended for the next six years. According to a statement from AT&T Mexico, shared by Xataka México, the company assures that the extension of this agreement is a sign of the commitment of both companies to contribute “to the development of the telecommunications sector” in Mexico. According to AT&T:
“The extension of the agreement strengthens the ability of each of the companies to compete in a highly concentrated market, and is a sign of trust between two companies committed to continuing to grow in the telecommunications sector to bring connectivity opportunities to more people in the country. “.
Although Telefónica Movistar will continue to use AT&T’s network, both companies will remain competitors in the market. And it is something to be expected, after all they are two of the most important operators with the most users in Mexican territory. At the end of 2023, Movistar had about 23.8 million lines, while AT&T had about 22.3 million throughout the country.
Cover photo | freestocks in Unsplash (with editing)
Via | Xataka Mexico