As expected, Mexican telecoms regulator IFT has confirmed that it deems America Movil (AMX) to be a “preponderant economic agent” in the country and that it will be subject to asymmetric regulation.
The decision follows the introduction of new…
As expected, Mexican telecoms regulator IFT has confirmed that it deems America Movil (AMX) to be a “preponderant economic agent” in the country and that it will be subject to asymmetric regulation.
The decision follows the introduction of new legislation designed to level the playing field in the sector.
AMX, which has around 70% of the wireless market and 80% of fixed-line, has been ordered to share its networks with smaller rivals and will also be subjected to a number of other measures.
In a stock exchange announcement AMX said it was analysing the “economic, technical, regulatory, operating and business perspective in order to be able to evaluate its effects”.
The IFT’s other conditions cover interconnection rates, local loop unbundling, line leasing, roaming, rates, content, quality of service and provisions for MVNOs.
If AMX cannot agree terms with its competitors, the IFT will step in and impose a methodology to determine the conditions of a contract.
The beefed-up regulator can go as far as revoking licences and forcing asset sales if companies do not comply with its pro-competition measures.
It has introduced multi-faceted legislation in a bid to create airtight regulations which the notoriously litigious operators cannot get overturned in court.
