The Shared Network (Red Compartida, in Spanish) is the first Public-Private Partnership in the world to adopt the Open Procurement Data Standard (EDCA), a model promoted by the World Bank to provide information on all stages of a public contest, from planning to its implementation.
The Red Compartida network will be “wholesale only” which means that the company, the builder and the one who operates the network, will not be a provider of mobile services, they will provide other mobile operators access to the network who will then to provide consumer mobile services.
The advantage of a wholesale only network is that many new players can enter the Mexican consumer market at once. The cost of building a mobile network is prohibitive and requires billions of dollars in capital outlay. By providing the infrastructure through a wholesale only network, the cost of offering a new consumer service to Mexican customers will be significantly reduced.
The Mexican Government expects that the construction of the wholesale network, and the resulting entry of new providers to the Mexican market, will generate 13 billion dollars of Foreign Direct Investment over a three-year period. If the network gets fully deployed, we believe the dollars will be significantly greater.
Mexcap has done an evaluation of the opportunities and challenges in the telecommunications market in Mexico.