Mexico’s Axtel boosts investments, ups revenues in Q3

Mexican ICT and data services company Axtel accelerated its investments in the third quarter while reporting modest growth in revenues.

Overall, the B2B services-focused company invested 346mn pesos (US$20mn) in the quarter, representing 12% of its revenues for the period, up from 285mn pesos and 10% a year earlier.

Year-to-date, Axtel’s investments surpassed 1bn pesos, compared to 930mn pesos in January-September 2022.

Revenues stood at 2.78bn pesos in Q3, up 2% year-on-year, due to increases of 6% and 17% in the enterprise and government segments, respectively, partially offset by a 19% drop in wholesale, the company said in a results release. 

Axtel widened its losses in the period to 258mn pesos, from 116mn pesos in 3Q22.

INVESTMENTS

Axtel does not provide a breakdown of investments.

Nonetheless, the company completed the certification testing of next-generation coherent optical technology and “is now capable of achieving speeds of up to 400Gbps on its data network,” it said.

The company also said that it strengthened its optical network platforms and capabilities to meet current demand driven by e-commerce, cloud connection, datacenters and supply chains, among others, achieving optical transmission channels of up to 1.2Tbps in its transport network.

Furthermore, Axtel obtained ISO 27001 recertification, making the transition to version 2022 of the standard regarding its information security management systems.

Axtel’s fiber network spanned approximately 48,800km as of 2022-end, of which 13,400km related to capacity use agreements. 

The company's access options to customers include last mile fiber, point-to point and copper, all connected through 23,500km of metropolitan fiber optic rings. 

Meanwhile, Axtel’s wireless network uses microwave radios, TDM switches and next generation switches (Softswitch), as well as other types of related infrastructure.

These are supplied by companies such as Motorola, Nokia, Siemens Networks, Ericsson and Ribbon. 

Axtel’s internet platform is based on Cisco, Nokia and Huawei routers with HPE servers and software applications developed by Microsoft. 

Local fiber networks or metropolitan fiber optic rings come from Furukawa, Samsung, Huawei and AFL while optical transmission equipment is provided by Alcatel-Lucent (Nokia), Nokia-Siemens Networks, Infinera, Huawei and PacketLight.