A PYMNTS Company

Mexico: Telco watchdog takes on quasi-monopolies

 |  March 9, 2014

Mexico’s new Federal Telecommunications Institute is cracking down on major market plays as it ruled Carlos Slim’s America Movil as the dominant wireless operator, say reports.

The nation’s top cable company, Grupo Televisa, was also declared dominant. Both companies were expected to receive such news.

The announcement is part of regulators’ efforts to crack down on so-called quasi-monopolies and boost competition in the telco industry. The powers of the new telco authority to declare a company dominant mean those companies are now required to follow certain guidelines.

Televisa, for example, will now be required to use its infrastructure for a set fee, and can not acquire exclusive broadcasting rights to content, say reports, among other concessions.

Similarly, America Movil will be required to let rivals use its network at a low cost. Slim’s telephone companies Telmex and Telcel, which collectively control about 80 percent of the fixed line industry and 70 percent of the wireless industry, were also declared dominant.

Full Content: Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.