Looks like it was a busy weekend for te boys:
Telscape International, Inc. Selects Nortel Networks and Subsidiary of MasTec, Inc. to Supply and Construct a Fiber Optic Network in Mexico
HOUSTON--(BUSINESS WIRE)--Feb. 22, 1999--Telscape International, Inc. (NASDAQ: TSCP) (the "Company") today announced that it has signed a letter of understanding with Nortel Networks (NYSE: NT/TSE: NTL), a leading provider of Unified Networks, for the construction of a 650 kilometer fiber optic network in Mexico. The parties are currently finalizing the terms and conditions for the project. The network, which will initially serve the Gulf Region of Mexico, is expected to be completed by the end of 1999, and will be operated by Telereunion, S.A. de C.V., Telscape's Mexican subsidiary. The outside plant of the network will be constructed by Acietel Mexicana, S.A. de C.V., a wholly-owned subsidiary of MasTec, Inc. (NYSE: MTZ).
Manuel Landa, Chairman of Telscape, commented: "The selection of Nortel Networks and Acietel to supply and construct the Mexican Network marks a significant milestone in our evolution. The Gulf Region is strategically attractive due to a meaningful concentration of under served corporate and retail customers, lack of regional competitive fiber infrastructure, and a high percentage of intra-regional calling which will result in more efficient on-net terminations. The Company plans to leverage this investment in infrastructure by "swapping" and leasing capacity from other carriers in Mexico, as well as utilizing satellite services from Interlink, a Telscape subsidiary, to complete a national network. Ultimately, we expect to be in a favorable position, with a fraction of our originally anticipated investment, to offer service to 90% of the Mexican domestic market. Furthermore, the buildout of this network will position Telscape with a very advantageous cost structure and technological platform in the largest and fastest growing international telecommunications corridor in the world: U.S./Mexico. A significant presence in Mexico represents a vital competitive advantage in Telscape's strategy of providing value-added telecommunications services to the Hispanic and Latin American markets."
Scott Crist, Chief Executive Officer, commented: "Telscape and Nortel Networks have collaborated over the last 10 years in providing sophisticated telecommunications solutions in Mexico to Telscape's 2,500 commercial and institutional customers. This project is an example of the significant commitment that our two companies have to each other and to Mexico. Moreover, we are also pleased to have access to Acietel's and MasTec's extensive experience in building telecommunications infrastructure projects in Mexico and Latin America. In supporting our efforts, Nortel Networks and Mastec have recognized the unique approach that we are taking toward the Mexican marketplace."
"Telscape has devised a solid business plan to capitalize on the immense opportunities in Mexico's telecommunications sector. This fiber optic network is just the latest project in the long, successful relationship between Telscape and Nortel Networks. We look forward to continuing to supply them with leading edge technology for all their endeavors in Latin America," said Dan Hunt, president, Nortel Networks CALA (Caribbean and Latin America).
"We look forward to the challenge of participating in the construction of a state of the art fiber optic network for Telscape. Acietel and Nortel Networks have worked closely on fiber optic projects in Mexico, and we are confident that we will provide Telscape with a cost effective and efficient project implementation," said Placido Valdes, president of Acietel.
Mr. Crist, further commented: "For any U.S.-based international telecommunications company it is crucial to have a strong presence in Mexico. The market opportunity is too great to ignore considering that more than 10% of the international long distance traffic originating in the U.S. terminates to Mexico. Our Mexican network is the driver, which brings together many of the synergies Telscape has been building upon over the past few years. As an early market participant in Mexico, we are well positioned to build on our success in the region."
Telscape International, Inc. is an emerging, fully integrated telecommunications company. The Company, based in the U.S., supplies international voice, video and data services, via switched and dedicated networks, principally to and from Latin America. In addition, the Company provides a full range of systems integration and value-added telecommunications services in Mexico to major public and private sector customers. Telereunion, a Telscape subsidiary, is one of only thirteen companies that has been granted a facilities-based long distance concession by the Mexican government.
MasTec, Inc. is one of the preeminent builders of the information superhighway in North America. MasTec builds, installs and maintains internal and external networks and other communications facilities for leading telecommunications, cable television, Fortune 500 corporations and energy companies.
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