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Mexico: Tycoon Carlos Slim may have found legal loophole

By  |  January 19, 2014

Telco tycoon Carlos Slim, who heads Mexico’s wireless giant America Movil, is accused of circumventing the nation’s competition law to benefit his fixed-line monopoly, say reports.

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    Local financial reports say that Slim developed a new method for fixed-line monopoly Telmex, an America Movil subsidiary, to divest assets as a way to find a loophole of Mexico’s new competition legislation. The Federal Communications Institute is set to declare America Movil and cable giant Televisa dominant next March.

    According to reports, a civil judge had ordered Telmex to halt all divestitures last January at the request of rival Bestphone, which expressed concern that the Telmex divestitures were part of a plan to avoid telco reform including the required interconnection between phone companies. Under the reforms Telmex would be required to share its network with rival operators. The divestitures are reportedly a way to not longer have those sold assets be considered a part of America Movil, therefore forced out of the required regulations.

    No charges or formal complaints have been brought against Slim or America Movil regarding the alleged plans.

    Full Content: Forbes

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