Mexico’s government has presented the details of its telecoms bill designed to curb the influence of Carlos Slim’s America Movil (AMX) and introduce more competition in the industry.
Since the secondary legislation was unveiled yesterday, more than…
Mexico’s government has presented the details of its telecoms bill designed to curb the influence of Carlos Slim’s America Movil (AMX) and introduce more competition in the industry.
Since the secondary legislation was unveiled yesterday, more than US$1.7bn has been knocked off of AMX’s market capitalisation.
The latest proposed laws, which need to be approved by Congress, will allow the regulator to interfere with the operator’s prices and discounts.
America Movil currently has around 70% of Mexico’s mobile market and 80% of the fixed line market – the company will be subject to asymmetric regulations until these numbers fall below 50%.
Mexico had previously passed a bill leading to the creation of beefed-up telecoms regulator IFT, which is empowered to go as far as stripping assets from non-compliant telcos in its bid to level the playing field.
At time of publication, AMX’s share price had fallen 4.4% from its previous closing price of US$20.26. The Carlos Slim-controlled telco’s stock has fallen more than 12% since the start of the year.
