America Movil faces restrictions in Mexico – regulator

News General Mexico 4 JUN 2011
America Movil faces restrictions in Mexico – regulator
Mexico's Federal Telecommunications Commission plans to apply restrictions to America Movil's fixed-line unit in the market for leasing lines to rivals. These restrictions will be introduced around 15 June, Cofetel president Mony de Swaan said in an interview with Bloomberg. The government also plans to introduce new regulations for America Movil's mobile unit Telcel, which could affect consumer prices, de Swaan added. "They're decisions that can greatly impact the market, so we want to tread carefully," said de Swaan. "It will be a mix of different measures having to do with fees, information and quality", he added. The new rules will be based on 2009 and 2010 findings by Mexico's antitrust agency that the company is dominant in different market segments, allowing Cofetel to single out the operator with specific regulations. America Movil is challenging those antitrust rulings. De Swaan plans to introduce actions he says will level the playing field between America Movil and its rivals. That includes reducing fees that operators charge each other to connect calls and establishing rules for leasing lines from rivals. According to de Swaan, Cofetel's technical staff is currently reviewing the options for regulations that could be applied to America Movil in the wireless market. The rules could be interpreted to include prices for consumers or for fees charged to rivals, among other options, he said.

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