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Mexico: IFT approves Telmex separation, America Movil to appeal

By  |  March 6, 2018
Mexico: IFT approves Telmex separation, America Movil to appeal

Mexico’s telecom regulator IFT has approved a plan to separate America Movil’s fixed-line Telmex and Telnor units as part of antitrust measures against the company. Creating a separate wholesale unit will allow Telmex to reinvest proceeds from line rentals in infrastructure upgrades, said the IFT. The company now has two years to carry out the functional separation of its retail and wholesale fixed-line businesses and will have to present an asset and debt transfer plan during that time, added the regulator in a statement.

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    In addition, the new fixed-line businesses will have to separate out local network services and have boards of directors independent of America Movil as well as brands that no longer use the names Telmex, Telnor or even Telcel, the company’s mobile brand.

    American Movil replied that it would begin the separation process while challenging it in accordance with applicable laws. “The legal and functional separation plan ordered by the IFT today differs substantially with the plan presented by Telmex and Telnor,” said the company in a statement to the Mexican stock exchange.

    Full Content: Reuters

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