CNA Approves OXIO’s Acquisition of Telefónica Mexico

The National Antitrust Commission (CNA) has approved Melisa Acquisition’s US$450 million purchase of Telefónica Mexico by a consortium led by OXIO and Newfoundland Capital Management, clearing a key regulatory condition for the transaction and bringing Movistar Mexico closer to a cloud-native transformation.

The acquisition of Telefónica Mexico is moving closer to completion after the National Antitrust Commission (CNA) approved the US$450 million transaction involving Melisa Acquisition, LLC, a consortium led by OXIO Inc. and Newfoundland Capital Management. The approval, confirmed by sources to El Economista, clears one of the regulatory conditions required for the acquisition. The formal notification to the parties is taking place this week, while a public resolution has yet to be issued.

For OXIO, the transaction represents more than a change in ownership. The company plans to use Telefónica Mexico, also known as Movistar, as the foundation for a telecom model built around cloud infrastructure, software, data and access to multiple networks. The acquisition remains subject to the other applicable closing conditions and regulatory approvals identified when Telefónica announced the agreement in April.

From Movistar’s Network to a Software-Led Model

Movistar has more than 20 million mobile lines and ranks third in Mexico’s mobile market. Melisa Acquisition agreed to acquire the entities through which Telefónica controls the Mexican operation, including Pegaso PCS and Celular de Telefonía. The transaction would place the operation under a consortium led by OXIO and Newfoundland Capital Management while maintaining the Movistar brand and existing leadership team.

Nicolas Girard, Founder and CEO of OXIO Inc., says the company intends to begin the transformation by migrating Movistar’s customers from its legacy technology infrastructure to OXIO’s cloud-native platform. “The future is not one network. The future is the best network available,” Girard says.

The migration is expected to take several months and could potentially be completed without replacing customers’ SIM cards. Girard has described the transition as largely transparent for users, with the first stage focused on moving the underlying technology rather than changing the customer relationship.

The approach reflects Movistar existing asset-light structure. Telefónica returned mobile spectrum and stopped operating its own nationwide radio access network after reaching an agreement to use AT&T infrastructure.

Movistar nevertheless retains assets including its core network, radio-link frequencies, and a stake in GTAC’s fiber-optic infrastructure.

OXIO has said it intends to maintain its wholesale agreement with AT&T, which runs through 2030, while combining that capacity with infrastructure from other providers. The company’s Telecom-as-a-Service model is designed to place software above the physical network layer. Towers, spectrum, fiber and other infrastructure would continue to provide connectivity, while software would manage elements such as identity, policies, routing, security, service quality, and commercial conditions.

For the operator, this creates a model in which infrastructure can be consumed and managed more programmatically rather than requiring the same level of ownership over physical assets.

Satellite Spectrum Becomes Part of the Strategy

The proposed architecture could also incorporate satellite connectivity. OXIO had previously said it was considering satellite services to complement Movistar’s terrestrial coverage, particularly in areas where conventional mobile networks have limited reach.

Girard says the company is in discussions with the Mexican government regarding access to the spectrum required for satellite services. “We are in conversations with the Mexican government about access to spectrum, since spectrum is needed for satellite services,” Girard says.

OXIO maintains relationships with satellite companies offering technologies capable of connecting phones directly to satellites. Under its proposed architecture, mobile and satellite connectivity could become complementary components of the same service. The company has also indicated that it does not intend to rebuild Movistar Mexico around a large physical infrastructure footprint.

Asked by TeleSemana whether future investment would prioritize OXIO-owned infrastructure or third-party networks, Girard described a combination, with greater emphasis on using infrastructure owned by other companies. The distinction is central to OXIO’s strategy. Rather than concentrating primarily on towers and other physical assets, the company intends to manage the software and commercial layer built on top of those networks.

A Different Commercial Model for Mobile Services

The proposed transformation also extends to how Movistar could package connectivity. Mexico has a strong prepaid mobile market, but Girard says the distinction between prepaid and postpaid becomes less relevant when the objective is to create recurring customer value. The company wants to use information about consumption, devices, mobility, and preferences to develop more specific products rather than applying the same packages across the entire customer base.

OXIO says that approach would require consent, security, privacy, and anonymization to be incorporated into the underlying architecture. The company is also considering how the same model could address rural connectivity. Girard identifies two separate challenges: reaching remote communities with suitable infrastructure and establishing an economic model that can sustain connectivity for users with lower purchasing power.

OXIO’s proposed answer combines terrestrial mobile infrastructure with satellite connectivity. On the commercial side, Girard has discussed models in which part of the cost could be supported by economic value generated elsewhere in the ecosystem. He has cited aggregated information related to logistics, deliveries and mobility patterns as potential sources of value that could contribute to connectivity models. The concept remains a business-model proposal rather than an announced commercial product for Mexico.