Mexico to Slim Down America Movil's Competitive Edge

Mexico is trying to take control of its telecommunication sector, making it more difficult for Mexico’s richest man, Carlos Slim.  Mexico passed a bill on Sunday, July 5^th, that will try to create more competition for America Movil and other dominant telecom companies by assisting new companies to grow. It will also try to prevent Carlos Slim from joining new markets, especially the TV market. The bill has yet to be passed by the Lower House of Congress. Carlos Slims is estimated to be worth $74 Billion, and his company America Movil controls 70% of Mexico’s mobile subscriptions. This new bill would allow regulators to set the phone rates for the dominant companies.  It would also require Slim’s mobile unit, Telcel, to allow free calls from competitor networks. Additionally, the bill would require Slim’s Telcel to wait 18 months before joining the television market. Although the bill holds restrictions on pricing and sharing infrastructure, America Movil and other dominant companies are given the ability to propose their own breakups to reduce their market share. The bill can regulate the power of large television companies, such as Grupo Televisa. This dominant company owns 70% of the TV market share. According to the bill, Televisa must also share its infrastructure with new and growing companies. Manlio Fabio Beltrones, head of the ruling Institutional Revolutionary Party in the lower house, said in a statement "With more investment we will have more competition, more quality and options of service and accessible prices for users." "It’s urgent that we approve this reform." Launch 3 Telecom is a global distributor of equipment utilized by mobile operators to produce the best quality networks. If you are interesting in buy and selling equipment, contact us at  877-878-9134 or email us at sales@launch3.net.
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