Mexico: America Movil rival says telco reform ‘came up short’

As Mexico’s top wireless operator America Movil said it will challenge recent government action to reduce the company’s dominance over the industry, one America Movil rival said the new telco watchdog “came up short” in its efforts.

Reports say joint-owner of wireless operator Iusacell and owner of TV Azteca, Ricardo Salinas, spoke in Colombia at an investment event to criticize the Federal Telecommunications Institute’s recent declaration that America Movil and broadcaster Televisa are dominance players in their perspective markets.

”The IFT came up short in its measures surrounding dominant companies,” Salinas said, “particularly in terms of everything to do with interconnection.”

The new regulator now has the power to require America Movil, Televisa and other dominance telcos to request annual approval every year of rates charged to rivals for use of their infrastructures. Interconnection fees, and disputes over those fees, will also be determined by the IFT.

Salinas is the co-owner of Iusacell with Televisa, forming a joint venture that competes against America Movil. Neither Iusacell nor TV Azteca were declared dominant.

Full Content: Reuters

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