The regulation of its local subsidiaries Telmex (fixed) and Telcel (mobile) will include asymmetric interconnection rates, regulated access to passive infrastructure, local loop unbundling, retail-minus and LRIC pricing of wholesale dedicated links, the elimination of national roaming charges and mandatory roaming access for other operators and virtual providers. The operator must also provide reference offers for all the above services and will be subject to quality and reporting obligations.
America Movil will also face limits on its retail activities. These include an end to Sim locks, limited exclusivity on handsets and broadcast content, an obligation to offer all services in a bundle separately and review of certain retail prices.
The IFT said the regulatory measures will also prevent evasion of regulation through a subsidiary, a possible move raised by America Movil's rivals that would see the incumbent separate its more profitable activities from its fixed infrastructure. The regulator added that no break-ups were planned "at this time", and that these would only be ordered as a last resort. The IFT said its anti-trust measures would be reviewed after two years, whereupon it could opt to take stronger action against dominant players, or ease the regulatory burden. America Movil said it was still assessing the full impact of the proposed regulation.
Data from Mexico's Federal Competition Commission (Cofece) indicates that the telecommunications market has the third highest rate of concentration in the country, with a score 6,382 points on the Herfindahl-Hirschman Index. Petroleum and electricity took the top two places, while the media market was in fourth place, with 5,994 points. According to the IFT, a score of more than 2,000 points can affect competition. The mobile market in Mexico recorded 5,334 points, fixed telephony 4,761, fixed broadband 4,721, mobile broadband 4,470 points and pay-TV 3,151 points.
