Telefonica Signs Agreement to Use AT&T's Infrastructure in Mexico

   By Giulia Petroni

Telefonica SA (TEF.MC) said Thursday that its subsidiary Pegaso PCS SA de CV signed an agreement with AT&T Comunicaciones Digitales, S de RL de CV to be provided with "last mile" wireless access services.

The Spanish telecommunications company said Telefonica Mexico will access AT&T Mexico's wireless "last mile" equipment--the final leg of telecom networks that delivers service to consumers through towers, antennas and fiber-optic cables--but will remain an independent operator.

The agreement is set to be in place for eight years, Telefonica said. After a three-year period, Telefonica Mexico is expected to generate approximately 230 million euros ($254.67 million) in cash flow and achieve a reduction in net debt of EUR500 million.

The financial terms of the deal were not disclosed.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

November 22, 2019 01:38 ET (06:38 GMT)

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