America Movil argued it received a concession extension for its Mexico-based subsidiary Telmex, dismissing comments by the nation’s president who reportedly suggested operations of the unit might be revoked if the operator fails to meet certain conditions.
In a statement, America Movil explained a decision by the Federal Telecommunications Institute (IFT) in Mexico issued in December 2016 has already granted it an extension until 2056, and in Q1 2023 the regulator will notify the operator of the concession agreement, including any new terms and conditions.
America Movil’s comments regarding its right to provide telecoms services in the country come after local media reports cited President Andres Manuel Lopez Obrador as saying a renewal of the concession for Telmex depended on commitments around favourable rates and network coverage in rural areas.
On 21 October, Mexico Daily Post reported a decision for the renewal or cancellation of the concession will be made in due course and the president was in favour of the former but social commitments were needed for this to be secured.
The IFT issued a separate statement confirming America Movil’s arguments. It added the commentary made by the president “does not correspond to the facts or the applicable legal framework, since the request for an extension it has already been resolved and there is no possibility of denying it”, with the delivery of the concession now pending after the IFT establishes its conditions.Subscribe to our daily newsletter Back