Axtel, Telefonica swap fiber

Mexican fixed line operator Axtel and Spain's Telefonica (NYSE: TEF) have signed an agreement to exchange fiber optic capacity in several areas of Mexico, according to an Axtel statement issued on Thursday. The agreement is part of Axtel's strategy to offer carrier of carriers services to other telecoms providers. Under the terms of the deal Axtel will provide capacity over 280km of its fiber optic rings in Mexico City, Monterrey, Guadalajara and Puebla, while Telefonica will provide Axtel with connectivity between Mexico City and Monterrey, Mexico City and Guadalajara, Monterrey and Reynosa, Queretaro and Guadalajara, as well as Monterrey and McAllen, Texas. The capacity involved ranges from STM-1 (155Mbps) to several Lamdas (over 2.4Gbps). Axtel operates in the cities of Guadalajara, Leon, Mexico City, Monterrey, Puebla and Toluca, and is 65% owned by local investors.