Mexico’s president Enrique Pena Nieto has signed telecoms reforms into law designed to rein in the dominance of incumbent operator America Movil to create a more competitive market.
The decree creates a new regulator, The Federal Institute of…
Mexico’s president Enrique Pena Nieto has signed telecoms reforms into law designed to rein in the dominance of incumbent operator America Movil to create a more competitive market.
The decree creates a new regulator, The Federal Institute of Telecommunications (FIT), which will have the power to revoke licences and demand asset sales if telcos do not comply with the new rules.
It will be able to declare operators with a market share of more than 50% dominant and impose asymmetrical regulation.
It also liberalises direct foreign investment restrictions in the sector meaning non-Mexicans will be allowed to own 100% of telecommunications and satellite communications companies.
The bipartisan bill was presented in March and previously approved by Mexico’s congress and state senators. Congress now has six months to amend other legislation to implement the bill.
America Movil – which controls 70% of Mexico’s wireless market and 80% of fixed-line – has previously said it expects the bill to materially affect its operations in Mexico.
