Following a review of the Mexican telecoms and media sectors, the country’s watchdog has identified the major players, without naming them, and is taking measures to preserve competition.
Telecoms regulator IFT said more details will be announced once…
Following a review of the Mexican telecoms and media sectors, the country’s watchdog has identified the major players, without naming them, and is taking measures to preserve competition.
Telecoms regulator IFT said more details will be announced once the concerned companies have been officially notified.
It is widely expected that those antitrust measures will mainly affect Carlos Slim’s America Movil (AMX), which controls about 80% of the fixed-line and 70% of the mobile market.
AMX has yet to be notified whereas Televisa, which has roughly 60% of the pay-TV market and is Mexico’s largest satellite-TV and cable operator, has received the notification.
In a statement today, the TV company said measures imposed by IFT include sharing its broadcasting infrastructure with third-parties in an attempt to allow new broadcasters in the industry. Televisa is also banned from having a stake in a dominant telco and cannot buy certain exclusive content.
Since last year, the new beefed-up regulator has the power to enforce asymmetrical regulations on dominant operators and can go as far as revoking licences and forcing asset sales if companies do not comply with its pro-competition measures.
Reports suggested in February the IFT would aim to use an ‘airtight’ formula to assert a company’s dominance in the telecoms or media industries. Rather than relying solely on numbers of subscribers, elements such infrastructure and investments would also be taken into account.
By having a number of indicators as opposed to just one, the government reportedly hopes to make it impossible for the historically litigious market leaders to find technicalities to circumvent the regulations.
Axtel open to consolidation
Separately, Mexican fixed-line operator Axtel is open to the idea of a merger with another telco, head of IR Adrian de los Santos told El Economista.
Santos cited tough competition from its major rival, AMX’s Telmex, as the driver for potential consolidation plans.
Meanwhile, Axtel’s head of regulatory affairs Ermilo Vazquez welcomed efforts from the regulator to address competition issues. But he expressed concerns about harsher measures being imposed on telecoms operators than on TV companies.
