America Movil fights fixed-line unit, MVNO commands - Mobile World Live

America Movil fights fixed-line unit, MVNO commands

09 MAR 2017

Mexican regulator IFT ramped up the pressure on America Movil, demanding the operator separate part of its fixed-line infrastructure and make modifications to its mobile operation.

The move comes after a review of reforms implemented in the country in 2014, which were designed to reduce the dominance of America Movil and increase competition in the market.

America Movil said in a statement IFT had now ordered a “functional separation” of its fixed-line unit, which would require the operator to create a new separate entity from its Telmex operation.

This entity would “exclusively provide wholesale services” and offer competitors access to infrastructure.

On mobile services, the regulator said America Movil must ease the path for MVNOs operating in the country.

The operator already vowed to challenge the rulings, arguing the “asymmetric regulations” are becoming redundant as there are now more mobile users in the country, and indeed more competition.

“America Movil believes that IFT resolution is not based on an integral evaluation in terms of competition, nor does it consider the profound changes in the Mexican telecoms sector within three years from the imposition of the asymmetric regulations and the effective competition that exists in mobile and fixed services, which is clearly shown, among others, by the significant growth in the consumption of telecommunication services, mainly data.”

Notably, US operator AT&T entered the Mexican market as a result of IFT’s first round of sweeping reforms. Increased competition and lower prices have also squeezed America Movil’s profit margins.

However, the operator still holds more than a 65 per cent market share in both the fixed and mobile sectors of the country, according to recent regulatory statistics.

 

Author

Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

Read more

Related

Tags