Megacable aims to complete fiber migration in 2025-26

Mexico’s Megacable has migrated half its HFC cable network to fiber, now taking aim at the rest.

"I believe that 80% of the [HFC network] will have been converted into fiber in 2024, and in 2025-26 we will migrate the other 20%," CEO Enrique Yamuni told BNamericas.

The company accelerated the initial migration plan.

"We are dismantling that network that already has a fiber overlay and we are moving all those nodes to double the capacity of other, smaller areas," Yamuni said. "We thought the conversion of that other 50% was going to take us six years, but the reality is that the market is demanding it sooner," he added.

Megacable is present in around 450 localities, of which some 250 have fiber optics deployed. In localities with fiber optics overlay, the company has migrated "practically 90% of customers."

Megacable has committed to a US$2bn investment plan to double its size, reach new locations and migrate its client base to fiber optics.

During 2022, the company deployed some 24,000km of fiber optics, expanding to new localities or converting the HFC network. This year, Megacable plans to deploy another 30,000km.

In 3Q22, the company registered 10.5mn homes passed, up 13.7% year-on-year, and its network covered 71,460km.

In addition, the company is strengthening its long-distance fiber network.

Megacable executed some US$800mn of its expansion plan, maintaining capex for this year, but slowing in 2024 and 2025, Yamuni said. Results should be seen in the second half this year.

"We did well in 2022, we had growth. We did not expect much growth because it was a year of investment, launching markets," he said.

Megacable recently announced a 900mn-peso (US$31.8mn) infrastructure investment to reach 70% coverage in Baja California state. Monterrey operations will get 1.5bn pesos, Chihuahua 700mn pesos, Jalisco 600mn pesos and Aguascalientes 400mn pesos.