The Mexican government is reported to be planning comprehensive regulations to prevent companies such as Carlos Slim’s America Movil (AMX) and pay-TV business Televisa from dodging its new anti-monopoly measures.
An airtight formula is being designed…
The Mexican government is reported to be planning comprehensive regulations to prevent companies such as Carlos Slim’s America Movil (AMX) and pay-TV business Televisa from dodging its new anti-monopoly measures.
An airtight formula is being designed so that dominant players will not be measured purely on their subscribers. Elements such as infrastructure and investments will also be taken into account, a person with knowledge of the plan told Bloomberg.
By having a number of measures as opposed to just one, the government reportedly hopes to make it impossible for the historically litigious market leaders to find technicalities to circumvent the regulations.
Mexico’s new telecoms regulator, Ifetel, has already found America Movil and Televisa to be “dominant” players in their respective markets.
AMX is said to have 80% of the fixed-line and 70% of the mobile market, while Televisa has roughly 60% of the pay-TV market and is Mexico’s largest satellite-TV and cable operator.
The regulator has the power to enforce asymmetrical regulations on “dominant” operators and can go as far as revoking licences and forcing asset sales if companies do not comply with its pro-competition measures.
Ifetel was created last year on the back of bipartisan reforms, signed into law by Mexico’s president Enrique Pena Nieto in June.
