ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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The intangible assets with indefinite life of the Company include only
goodwill, which has been assigned to the Business segment. The rest
of the intangible assets are of definite life.
Of the total amortization expense, $22,508, $11,757 and $2,131 were
charged to cost of sales and $265,423, $344,836 and $443,108 to selling
and administrative expenses in 2021, 2020 and 2019, respectively.
Company concessions
Axtel has 3 (three) single concessions for commercial use, one in favor
of Axtel S.A.B. de C.V., another one given to Alestra Servicios Móviles,
S.A. de C.V., and another one in favor of Alestra Innovación Digital, S
de R.L de CV, under which the Company is duly authorized to provide
any telecommunications and/or broadcasting service, including,
but not limited to the services of local fixed and mobile telephony;
national and international long distance, SMS (short message service),
purchase or rental of network capacity for the generation, transmission
or reception of data, signals, writings, images, voice, sounds and other
information of any nature; rental of digital circuits, etc.
In addition, Axtel S.A.B. de C.V. has concessions to use, take advantage
of, and exploit frequency bands for specific use in the frequencies of 7
GHz. (1 concession), 10 GHz. (15 concessions), 15 GHz. (4 concessions),
23 GHz. (6 concessions) and 38 GHz. (5 concessions).
The concession of Axtel S.A.B de C.V. is currently used to provide fixed
services to the business and government market. Alestra Servicios
Móviles uses its unique concession to provide mobile services in both
the MVNE and MVNO modalities. The Company has plans to use the
unique Alestra Innovación Digital concession to provide services to
the government market.
In 2021, the Federal Telecommunications Institute (IFT for its Spanish
initials) authorized the transition to a Single Concession Contract of a
Public Telecommunications Network Concession of Alestra Innovation
Digital, a situation that terminates the restructuring strategy of Axtel
Concessions as a group that began in 2019.
The Company's main commercial use concessions are as follows:
Service
Period Expiration
Single concession for commercial use of Axtel ( Commercial 30 years 2046
Single concession for commercial use of
Commercial 30 years
2048
Alestra Servicios Moviles (2)
Commercial 30 years
Use
2030
Commercial 20 years
2038
Single concession for commercial use of
Alestra Digital Innovation (3)
Various radio spectrum frequencies for the
provision of point-to-point and point-to-
multipoint microwave links(4)
(1) Concession valid for 30 years and renewable for up to equal
terms, provided that the Company is in compliance with all of its
obligations under the concession, as well as those contained in the
legal, regulatory and administrative provisions.
(2) Concession valid for 30 years and renewable up to equal terms,
provided that the Company is in compliance with all its obligations
of the concession, as well as those contained in the legal, regulatory
and administrative provisions.
(3) Single concession that was transitioned from the Public
Telecommunications Network Concession regime, valid for 30 years
from the term initially granted, may be renewable for up to equal
terms, as long as it is requested in the year prior to the last fifth
of the term of the concession and is also in compliance with all its
obligations under the concession, as well as those contained in the
legal, regulatory and administrative provisions.
(4) The radio spectrum concessions are to operate services in the following
Radio Frequency Bands: 7 GHz, 10 GHz, 15 GHz, 23 GHz and 38 GHz.
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