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Mexico: Telco crackdown to slow Slim’s profits by $1B

By  |  March 13, 2014

New regulations to reign-in the anticompetitive telco market in Mexico are set to slow the profits of the nation’s top wireless operator America Movil, owned by Carlos Slim, by about $1 billion, according to reports.

The news follows the long-awaited declaration of America Movil’s market dominance, part of new legislation in the nation aimed at cracking down on telcos with too much market share. The company will now be required to share landline and mobile networks with rivals, and the nation’s telecommunications watchdog will have the power to regulate America Movil’s prices.

According to reports, these reforms will force the company to lose out on $1 billion in profits and decline by 15 percent over the next three years.

Former antitrust head Miguel Flores Bernes described the announcements “a historic day.”

Full Content: Businessweek

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