America Movil (AMX) is reported to have mandated Bank of America to enact its plan to dispose of certain telecoms assets in Mexico to comply with regulatory reforms.
In July the incumbent operator announced that it would offload subscribers and…
America Movil (AMX) is reported to have mandated Bank of America to enact its plan to dispose of certain telecoms assets in Mexico to comply with regulatory reforms.
In July the incumbent operator announced that it would offload subscribers and infrastructure following the recommendations of a strategic committee it established in light of changes to Mexico’s telecoms laws.
America Movil is expected to divest 20 million mobile customers and four million fixed-line subscribers, and would prefer to sell to one single buyer – ideally a well-capitalised foreign player.
AT&T and Softbank are both potential buyers, according to a Bloomberg report citing people familiar with the matter.
America Movil was branded a “preponderant economic agent” by telecoms watchdog IFT and has been ordered to cut its share of the fixed and mobile markets below 50% or face asymmetric regulation. Telmex has around 80% of Mexico’s fixed-line market and Telcel boasts roughly 70% of the mobile sector.
The regulator has been given more powers by Mexico’s legislature and can go as far as revoking licences and forcing asset sales if companies do not comply with its pro-competition measures.
In addition to selling subscribers, AMX is also hiving off its estimated 28,000 towers in Mexico and related passive infrastructure into a separate entity. It has not said whether it plans to list the spun-off infrastructure unit.