Mexico's lower house of Congress gave broad approval a major telecommunications reform bill recently introduced by president Enrique Pena Nieto. 414 lawmakers voted in favor of the reform and only 50 opposed, Reuters reports. Lawmakers must still vote on amendments to the bill. The bill is expected to pass Congress before the current session ends at end-April.
The bill aims to boost competition in the telecoms sector by increasing foreign investment and giving regulators the power to force companies with a market share above 50 percent to sell assets. The reform has been hailed as the biggest planned shake-up in decades of the telecoms industry, which critics of Mexico's economy view as a microcosm of the excessive control wielded by a small group of people over key sectors.
Though Pena Nieto thrashed out the proposal with the leaders of the main opposition parties, a number of disputed points must still be resolved before the bill can pass Congress.
In the lower house, PRI lawmakers seek to amend the bill to ensure that Mexico follows a reciprocal approach to opening up its market to foreign investment. That approach would ensure that the size of holdings foreign firms can take in Mexico will not be allowed to exceed the share Mexican firms can hold in that country's market.
The bill eliminates restrictions on foreign ownership in telecommunications, eliminating current limits on fixed-line assets. The bill also allows foreign investors to take up to 49 percent ownership of TV or radio broadcasters, pending a review by a foreign investment commission.
Some opposition lawmakers have also voiced strong opposition to elements of the bill such as a provision that the president be consulted on telecommunications concessions. A separate provision of the bill pledges to create a new independent regulator for the industry.
