LatAm giant America Movil (AMX) has denounced the details of secondary legislation, which is part of Mexico’s telecoms reforms presented to the senate earlier this week.
The bill will allow the regulator to interfere with prices the “dominant” operator…
LatAm giant America Movil (AMX) has denounced the details of secondary legislation, which is part of Mexico’s telecoms reforms presented to the senate earlier this week.
The bill will allow the regulator to interfere with prices the “dominant” operator sets and force it to share its networks.
The market leader, headed by billionaire Carlos Slim, distributed a statement today detailing its criticisms of the proposals. The operator – which has 70% of Mexico’s mobile market and 80% of fixed – was particularly disappointed that it had to provide interconnection services to its smaller rivals for free.
“That confiscatory proposal rewards the chronic lack of investment on the part of our competitors to the detriment of consumers,” AMX said.
It also attacked part of the legislation relating to pay-TV and accused regulator the IFT of protecting market leader Televisa; which is also being subjected to asymmetrical legislation. AMX is currently barred from offering pay-TV but will eventually be allowed to under the new reforms.
However, the telco said that because it has to comply with the IFT’s new measures for two years before it can apply for a pay-TV licence, the bill was effectively prolonging the lack of competition in broadcasting.
AMX has been trying to get into television for years in a bid to expand its offering; it has acquired the rights to broadcast the 2016 summer Olympics in all of Latin America apart from Brazil.
