Mexican mobile network, Iusacell and Telefonica’s local subsidiary have jointly announced an agreement to share their network infrastructure in the country.

The combined network will also start LTE trials later this year in anticipation of a commercial launch in 2013.

Under the terms of the agreement, which is slated to last for at least five years, Iusacell will gain access to Telefonica’s rural network, while Telefonica should be able to improve coverage in the cities, where Iusacell is stronger.

The network sharing deal is limited to their towers and fibre-optic networks. Where one network has coverage that the other lacks, roaming between the networks will be possible.

The companies declined to detail any commercial aspects of the deal, which still needs clearance from the regulator.

The move may help the two companies cut costs and compete with America Movil, which dominates the Mexican market with a market share of around 70%..

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