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Latin America: New president for Mexico continues wireless market crackdown, bad news for world’s richest man

By  |  December 4, 2012
Latin America: New president for Mexico continues wireless market crackdown, bad news for world’s richest man

Mexico’s new President Enrique Peña Nieto, who was inaugurated last Saturday, made campaign promises to triple the nation’s GDP growth, a promise which experts say can only be accomplished by combating monopolies. It is a goal some say will be difficult considering Mexico’s history of monopolistic culture. Perpetuating that culture, say experts, are giants like Telmex, Televisa, Cemex, and Wal-Mart’s Mexico branch Walmex. Mexico’s Organisation for Economic Co-operation and Development has stated that $129.2 billion was spent between 2005 and 2009 – 1.8 percent of the nation’s GDP per year – due to these monopolies.

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    Telmex is owned by Carlos Slim, the world’s wealthiest person with an estimated worth of $69 billion. With the inauguration of President Nieto, Slim is now facing backlash over his growing telecommunications empire. The past four months have brought new telecom regulations throughout Latin America, and Mexico’s pledges to combat anticompetitive behavior is just the latest in efforts also made by nations like Argentina and Colombia. Slim’s largest company, America Movil SAB, has lost some profitability since the regulations have hit the mobile phone sector, mainly due to Brazil’s recent ruling against the company’s efforts to sell wireless plans in certain states to prevent any dominance practices.

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