The Red Compartida (or Shared Network) is one of the most important projects being undertaken in the Mexican telecoms sector. The project involves a new mobile broadband network in the 700 MHz band, which will provide wholesale services under a public-private partnership structure between Altán Redes and the government.

On 21 March 2018 the president launched the project, complying with the aim of the first stage, which was to provide mobile broadband coverage to 32% of the population and 25% of the so-called 'magic towns' (approximately 29 towns). The coverage percentages will be increased periodically, with the aim of covering 92.2% of the population by 2024. If this aim is met, Mexico will be the third country in the world to offer this level of coverage.

The Red Compartida will increase competition in the telecoms sector, as any company can take advantage of the new infrastructure to grow and compete in the Mexican mobile market under better conditions. To date, three companies have entered into Red Compartida contracts to provide wholesale telecoms services.

In principle, the Red Compartida will offer pricing structures that enable mobile virtual network operators to replicate by a reasonable margin any offer that exists in the market in order to balance or improve rates for end users. There is a public offer for the Red Compartida's services; however, its tariffs and charges are confidential.

The Red Compartida is expected to boost competition and introduce new services and players to the Mexican telecoms sector. It remains to be seen whether the results will provide the general public and consumers with new and attractive alternatives for mobile broadband services in the areas already covered by the new network and those that will be expanded when the project's deadlines are met.

For further information on this topic please contact Federico Hernández Arroyo at Hogan Lovells BSTL by telephone (+52 55 5091 0000) or email (federico.hernandez@hoganlovells.com). The Hogan Lovells website can be accessed at www.hoganlovells.com.

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