Spanish telecoms giant Telefonica has struck a deal to use some of U.S. rival AT...
MEXICO CITY - Spanish telecoms giant Telefonica has struck a deal to use some of U.S. rival AT&T’s infrastructure in Mexico, a move analysts said would better position both to compete with the market’s juggernaut, billionaire Carlos Slim’s America Movil.
After a three-year transition period, Telefonica will see savings of 230 million euros per year, as well as a reduction in net debt of 500 million euros. Financial terms of the deal with AT&T were not disclosed. The agreement will give both Telefonica and AT&T a boost in a brutally competitive market, said Roger Entner, an analyst at Recon Analytics.
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