MEXICO CITY (WiMAX Day). At its annual shareholders meeting this month, the long-distance telecommunications provider Alestra announced that it would like to offer WiMAX services to broaden the mix of services provided to its customers.

The company, which is a subsidiary of AT&T, does not presently own WiMAX spectrum in Mexico. Alestra said it intends to participate in the up-coming auction of 3.5 GHz spectrum by the Comisión Federal de Telecomunicaciones (Cofetel). Sources say that the auction, which previously had been postponed, might begin in Q2 this year.

Rolando Zubirán, general director of Alestra, told reporters that the company is awaiting notification from Cofetel. Owning its own WiMAX spectrum would allow Alestra to “take ownership of the last mile, and combine services such as content and video, with our platform today for voice and data,” said Zubirán.

Last mile connectivity would also allow Alestra greater freedom from Telmex, which presently controls the majority of such connectivity in Mexico.

However, Zubirán also indicated that Alestra may consider extending its partnership with the Mexican telecommunications service provider MVS Comunicaciones to provide WiMAX services. MVS operates a wireless broadband network in Mexico using 2.5 GHz spectrum, with the potential to reach 95% of the population. The bulk of its network operates using equipment from NextNet and Aperto Networks.

Alestra is in a hurry to add WiMAX services. While its revenue and EBITDA for 2007 were up 11% and 4%, respectively, its revenue from long-distance services in quickly in decline. The company said that it has budgeted USD 70 million for capital expenditures in 2008, a significant amount of which can be targeted at WiMAX.

Competitors are also all turning on triple-play services, and Alestra cannot be left behind.

Yet the company also will face stiff competition for WiMAX services. Axtel has already introduced WiMAX services and plan a fully-deployed network by year-end, and spectrum owners Telmex and Nextel are both planning networks.

Strategy will be key for Alestra. Zubirán said that for now the company must follow what conditions lay ahead for the spectrum auction, and that will “define the business strategy for Alestra to enter the residential market.”