America Movil studies structural shakeup, other measures in wake of Mexican reform

America Movil studies structural shakeup, other measures in wake of Mexican reform

26 JUN 2014

America Movil is assessing the “various structural, commercial, technological and other options” open to it in response to the imposition of a tough regulatory regime in Mexico.

In a statement, Mexico’s largest operator said it has set up a committee to study options having been identified as dominant by regulator IFT earlier this year.

The eight-member committee will include CEO Daniel Hajj, as well as Hector Slim who heads fixed-line operator Telmex, the company said.

The committee will come back with recommendations to the board which might be shared with its shareholders’ meeting. However, no timeline was given for the process.

America Movil is mounting a legal challenge to IFT’s ruling, and is awaiting a court ruling.

The regulator found the operator and its subsidiaries accounted for 61.8 per cent of the aggregate number of subscribers in the telecommunications sector, America Movil said in its filing.

Secondary laws to pass the details of the telecoms reform were due for approval by December 2013 but passage has been delayed.

Earlier this year, a judge told Telmex to stop a plan to restructure its business by spinning off network assets – a means for the operator to shift key infrastructure away from regulatory reach, said analysts.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

Read more

Related

Tags