Mexican regulator puts America Movil on notice

Mexican regulator puts America Movil on notice

06 DEC 2013

America Movil has confirmed it has been told by Mexico’s new comms regulator, the Federal Telecommunications Institute (IFT), that it will face an investigation into market dominance, as part of the government’s plans to reform the country’s telecoms sector.

Given the operator’s fierce grip on the country’s mobile market (it has approximately 70 per cent market share), the news is an unsurprising step by the regulator.

America Movil has previously said it expects to be declared dominant by the regulator.

The investigation will cover both its mobile unit (Radiomovil Dipsa) as well as the fixed business (Teléfonos de México).

Televisa, the country’s largest broadcaster, also confirmed it was being investigated to establish its market power in Mexico’s TV market.

American Movil said it had received a notice from the regulator “regarding the initiation of a proceeding for the alleged determination of ‘preponderant economic actor’, in the telecommunications market in Mexico, and the possible imposition of regulatory measures”.

In the first stage of the process, the regulator has requested market information from America Movil.

The IFT has until 9 March to determine which players are dominant in the telecoms and TV markets and apply measures to make them more competitive.

Possible remedies might include regulating America Movil more heavily than its rivals, for instance by charging it higher termination rates. Or it could be forced to unbundle its network. Even a forced sale of assets is a possible remedy if others are not judged sufficient.

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