CFE-TEIT Takes Over Altán Redes to Ensure Connectivity

President Andrés Manuel López Obrador announced that CFE, through its subsidiary CFE Telecommunications and Internet for All (CFE-TEIT), will take over the management of Altán Redes. This move aims to expand internet access to more Mexicans during Claudia Sheinbaum's upcoming administration.

“The company will be managed by CFE. Just as CFE ensures electricity reaches every household, this company will have the goal of providing internet service to all households. It will depend on the CFE,” López Obrador said during his morning press conference.

In 2021, the federal government assisted Altán Redes in overcoming its financial difficulties with a US$161 million investment from development banks, aiming to bridge the digital divide in Mexico. Since 2022, CFE Telecommunications has been a crucial partner for Altán in expanding its network. The companies agreed that CFE-TEIT would deploy towers and fiber optic infrastructure, requiring an investment of MX$30 billion (US$1.76 billion), while the Shared Network would utilize this infrastructure.

Carlos Lerma, CEO, Altán, mentioned that the partnership included a revenue-sharing agreement, where profits from leasing the infrastructure would be split between both parties. However, CFE TEIT’s new role as manager might alter this arrangement. According to CFE-TEIT, as of January 2023, 4,177 towers had been installed with an investment of approximately MX$6.146 billion, nearly exhausting the budget allocated for 2022.

López Obrador acknowledged that while the goal of providing connectivity to all Mexicans will not be met in the next few months, it is expected that at least 90% of the population will have access to telecommunications services. According to ENDUTIH, in 2022, there were an estimated 93.1 million internet users, representing 78.6% of the population aged six and older. On the other hand, as of December 2023, the national internet coverage stands at 94.7%.

In 2023, CFE-TEIT reported a net loss of MX$8.931 billion according to its annual report. Results contrast with the previous year, when CFE-TEIT generated a net profit of MX$4.9 billion. The company did not generate sufficient revenue to cover its operating expenses and other liabilities, which totaled MX$11.2 billion, marking an increase from the MX$7.6 billion recorded in 2022.

However, the company surpassed its target of achieving 150,000 mobile and wireless broadband users, achieved a total of 34,827 free internet connections, and provided signal coverage to 3,845 localities. The report also outlines goals for 2025, aiming for 140,000 free internet connections, 1 million mobile and wireless internet users, and coverage in 1,800 municipalities, as reported by MBN. 

The president emphasized that the next administration will be responsible for continuing the communication system's development. Experts indicate that achieving nationwide internet coverage will require effective collaboration between the government and the private sector due to the significant investments needed for infrastructure deployment.

CFE-TEIT aims to ensure almost all of Mexico has internet coverage by the end of 2024. This commitment is underpinned by four key initiatives: free internet access points, cellular coverage with social tariffs, a fiber optic network, and a last-mile project.