China Telecom plans bid to build Mexico broadband network – sources | Reuters

China’s third-largest carrier China Telecom is preparing a possible bid for a contract to build and run a new mobile broadband network in Mexico and is seeking local partners to join it in a consortium, three people with knowledge of the matter said.

It has already secured up to several billion dollars of financing from Chinese state-controlled banks, including the China Development Bank, for the project, which Mexico estimates will cost $10 billion over 10 years, one of the people said.

The proposed network is part of a sweeping reform designed to break billionaire Carlos Slim‘s hold on the Mexican telecoms business, but the Chinese involvement could prove controversial and trigger concerns from the U.S., some Mexican officials say.

Mexico’s government is trying to ease its economic dependence on the United States and ramp up Chinese investment. A Chinese-led consortium looks poised to win a $3.75 billion contract to build a high-speed train system, sources with knowledge of the plan say. This is despite the group’s previous winning bid being revoked late last year amid a political scandal.

via Exclusive: China Telecom plans bid to build Mexico broadband network – sources | Reuters.

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