Telmex reported to be building fiber network with Alcatel-Lucent

Wednesday, May 11, 2011

Mexican telecoms operator Telmex is reported to be building a fiber-to-the-home network with Alcatel-Lucent for deployment in 40 cities in the country.

The operator will deploy the network mainly in areas where mobile operator Iusacell is introducing its own fiber-to-the-home network, Bloomberg cited a source as saying.

Telmex is said to be looking to keep users from dropping its services for Iusacell's Totalplay service or other companies offering multiservice packages, as the company lost 29,000 subscribers during the first quarter of the year.

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Iusacell offers internet speeds of up to 100 Mbps, while Telmex currently offers 5 Mbps in most areas. The rumored project would increase the speed of Telmex's current internet service by as much as 10 times, according to the source, with the company planning to offer speeds of 10, 20 and 50 Mbps.

Iusacell expects to have 300,000 customers on its networks by the end of the year, and reportedly Telmex's plan is to reach 1mn homes in the same period.

According to Bloomberg, a spokesperson for Telmex holding company Grupo Carso confirmed that the fiber-to-the-home project disclosed in the group's Q1 financial report is mainly for Telmex.

In January, the company's owner, Carlos Slim, said Telmex planned to spend 10bn pesos (US$860mn) on capital investments in 2011, of which 70% would go to improving internet speeds and quality.