Logo of China Telecom Corporation Ltd. (Photo : Reuters)
The news of China Telecom Corporation Ltd.'s bid regarding a $10-billion national broadband project in Mexico was first reported on Friday by the Reuters news outlet.
The next day, a company spokesman sent an emailed statement to the media to publicize China Telecom's preliminary exploration of an investment opportunity in Mexico.
Reuters' Friday piece, which also cited sources, stated that China Telecom is engaged in a search for Mexican partners to form a consortium for the mobile broadband project. At the time the report was published, billions of dollars of financing had allegedly been secured from Chinese state-controlled banks, including the China Development Bank. However, Saturday's email statement did not make mention of any of the information publicized on Friday.
A number of media sources have stated that the proposed network is part of an overall challenge of the dominance of telecommunications mogul Carlos Slim, who controls a major portion of Mexico's telecom sector.
As Mexican regulators have maintained Slim's share of the market under the 50-percent mark, opportunities now exist for other telecom businesses, including those based internationally.
However, anonymous Mexican officials have said that involvement from a Chinese entity could lead to significant issues, including problems raised by the U.S. The U.S. is relevant, as Mexico's government has been attempting to partially reduce its economic dependence on America by using the boost provided by Chinese investment. Accordingly, a Chinese-led consortium is a forerunner in the tender process for a $3.75-billion high-speed rail contract.
As of Wednesday, comments could not be obtained from either China Telecom or the China Development Bank. Additionally, a representative of Mexico's Communications and Transport Ministry (SCT) refused to speak with the media.
