Bandwidth, Advanced Connectivity Are Needed to Grow: Axtel

Q: How has Axtel adapted its infrastructure to meet the unique demands of emerging technologies like 5G, IoT, and AI?

A: We have closely monitored the development of 5G, particularly the varying speeds of its adoption across different regions. In countries like Asia, where governments have subsidized the necessary frequencies, 5G has advanced rapidly. In regions like the European Union and the Americas, where telecom companies must pay for these frequencies, the rollout has been slower. In Mexico, we anticipate that 5G will gain relevance in the next three years.

AI has already arrived and is transforming the landscape, while increasing demand for high-capacity bandwidth. This can be seen in areas like Queretaro, which has many data centers. To meet this demand, we have certified our technologies to handle much larger bandwidths — up to even 800Gbps. This has required us to rethink our network design, adding more points of presence for secure and efficient data transmission.

Regarding IoT, we have seen the development of private mobile networks, particularly in high-risk environments like underground mining. These private networks allow for safer, remote operations without needing a nationwide license. We have also worked with oil and gas companies to provide the infrastructure needed for efficient, cost-effective exploration in the Gulf, ensuring critical data reaches their decision centers promptly.

Q: How does Axtel's Network Engineering and Operations team work to ensure that customer demands, particularly for high-speed connectivity and low-latency services, are met? 

A: Our engineering team focuses on medium to long-term planning, staying ahead of trends by participating in global forums and interacting with technology providers. For example, while we recognized that 5G adoption might be delayed due to frequency issues, we saw rapid growth in other segments, allowing us to shift our focus accordingly.

In Mexico, data centers from major companies like Google, Amazon, Oracle, and Meta are now localized, meaning users no longer need to rely on connections to the United States for cloud services. We have brought the data closer to users, establishing high-capacity interconnections with these providers to ensure seamless access and optimal performance.

Q: How does Axtel leverage its partnerships to enhance its capabilities?

A: Partnerships are critical for us. We cannot do everything ourselves, so we establish strategic alliances with leading technology providers. For example, as a Cisco Gold Partner, we not only use Cisco infrastructure but also sell its technology to our clients. We also partner with Fortinet for both our security needs and those of our customers. These partnerships allow us to use and recommend the best technologies, becoming experts in them to better serve our clients.

We also have complementary partnerships with carriers like AT&T, Verizon, and Orange to provide them with connectivity across Mexico. In other regions, such as the tourism-heavy southeast, we work with local companies to offer more integrated services. 

Q: What key challenges did Axtel face when upgrading its fiber optic network? 

A: Nokia is a key provider for our transport network, handling nearly 100% of our traffic to the United States. We are testing 800Gbps connections and have technology capable of surpassing 1Tbps, but these high speeds are feasible only over short distances, like from Mexico City to Queretaro. For longer distances, we are focusing on speeds of 400Gbps, 600Gbps, and 800Gbps. We even pre-purchased Nokia equipment to ensure quick deployment when customers need it, and in return, Nokia has streamlined its logistics to provide us with faster access to its technology.

Q: How is Axtel integrating sustainability into its infrastructure projects? 

A: We have been focusing on sustainability, aligning with the company's commitment to reducing its environmental impact. Our first step was to switch to energy providers that are more efficient and eco-friendly, using sources like natural gas, solar panels, and wind energy. These sustainable sources now produce 54% of our energy, significantly cutting our carbon footprint.

We also replaced older, energy-intensive equipment with more compact and efficient alternatives. We upgraded our data centers with modern systems like cold aisle containment and energy-efficient lighting, further reducing our environmental impact. Beyond that, we have started transitioning our fleet to electric and hybrid vehicles, especially for the teams monitoring our 50,000km of fiber optic lines. These efforts are part of our broader commitment to sustainability and environmental responsibility.

Q: What measures does Axtel have in place to protect the network from emerging cybersecurity threats?

A: Our network engineering and operations teams prioritize cybersecurity on multiple fronts. First, we have robust protections like firewalls that block external attacks, but we also focus on internal threats, which are less discussed but equally critical. We have implemented stringent security protocols across both our management and corporate networks, guided by our internal security committee. For example, we enforce multifactor authentication for all access points, including tokens, mobile apps, and physical firewalls.

We also conduct regular security simulations to identify vulnerabilities, especially targeting the weakest link — often the user. We test employee vigilance through simulated phishing attacks to reinforce best practices. We also invite ethical hackers to attempt breaches, allowing us to measure and strengthen our defenses.

On the customer side, our cybersecurity measures extend to mobile device management. We offer secure mobility solutions where businesses can manage their devices with enhanced security features like remote data wipe, secure authentication, and integration with all major mobile networks in Mexico. This comprehensive approach ensures that our network remains resilient against both current and emerging threats.

Q: As nearshoring continues to drive demand for advanced telecommunications infrastructure, how is Axtel positioning itself to meet these demands? 

A: Axtel is strategically positioning itself to meet the growing demand driven by nearshoring through its extensive fiber network coverage across Mexico. We have focused our infrastructure investments on areas with high nearshoring activity. We cover nearly 90% of industrial parks nationwide, ensuring that we are ready to connect clients swiftly. In many cases, we have already pre-installed infrastructure within these parks or offer flexible connection options depending on the agreements with park owners.

We have observed a significant concentration of demand in northern regions like Coahuila, Tamaulipas, and Nuevo Leon. Merida, Yucatan, is also showing notable growth. We have invested in expanding our infrastructure in these key areas and worked closely with local municipalities to navigate city-specific regulations for fiber deployment. Our robust network infrastructure positions us well to support the increasing telecommunications needs of businesses moving to these regions.

Q: Given the complexity and scale of Axtel's network, what are the most significant operational challenges your team faces and how are these challenges being addressed?

A: Axtel faces several key operational challenges. One of the primary issues is the need for constant technology upgrades. As bandwidth costs decrease, we must carefully plan our infrastructure investments to remain competitive. This requires precise decision making to ensure our technology remains viable in the future.

Regulatory and infrastructure costs also pose challenges. To address this, we advocate for a more streamlined regulatory approach, such as reducing permits for underground fiber construction along highways. This would facilitate broader investment and infrastructure sharing among carriers, helping to manage costs more effectively.

Talent acquisition and retention are increasingly complex as well. To address this, we are adapting our company culture to meet the expectations of new generations, focusing on leadership development, work-life balance, and inclusivity. 

Q: What trends are emerging in telecommunications and digital connectivity, and how is Axtel preparing to address these?

A: High-speed broadband is becoming essential, and its importance will continue to grow. As digital interactions become faster and more integrated, the demand for high bandwidth and advanced connectivity increases. Axtel is preparing for these trends by advancing our network capabilities with speed tests and ongoing technology updates.

Another key trend is cloud computing. Moving to the cloud allows businesses to access global networks and scale their operations without worrying about physical infrastructure. We are focusing on integrating cloud solutions with our network, helping businesses connect with major providers like AWS and Oracle. This approach provides companies with a broader range of opportunities to enhance their operations and tap into new markets.

We are also adopting a consultative approach, analyzing specific industry needs — such as those of finance, commerce, logistics, and manufacturing companies — and providing tailored solutions. 

Q: What are Axtel's key priorities and strategic plans for the remainder of this year and the next, particularly in terms of network expansion and technological innovation?

A: Axtel is focusing on strengthening its infrastructure to support the growing traffic between the United States, South America, and Mexico, positioning ourselves as a key hub in Latin America. We are upgrading our fiber optic network by installing cables with more fibers to meet increasing demands and offer flexible management options for our clients.

To expand our network, we are enhancing our 5G capabilities by connecting radio bases with fiber optics to ensure high-speed connections. We are also providing connectivity solutions for remote areas using microwave frequencies where fiber is not feasible. We are also working with wireless internet providers who target underserved communities with high-bandwidth needs. These providers are expanding rapidly, and we are supporting their growth by supplying the necessary bandwidth.

In response to the growing demand for internet services, particularly in small and remote areas, we are adapting our network to handle significant traffic.