Mexican competition watchdog, the Federal Competition Commission (CFC), has confirmed its preliminary decision designating Telcel dominant on the domestic mobile market. After analysing the arguments presented by Telcel to sustain that it does not apply any anti-competitive practices, the CFC has now ratified its preliminary ruling of 28 October, establishing the market dominance position. The aspects taken into account by the CFC during the dominance investigation included Telcel's large market share in terms of subscribers and revenue and high levels of profit gained steadily in recent years. CFC also added the operator's capacity to achieve net subscriber additions over its competitors as a result of its high level of coverage and extensive distribution network spread across the country, as well as the existence of significant barriers to the entry of new operators. According to CFC, Telcel's participation on the market is four times that of its nearest competitor in terms of number of subscribers and five times in terms of revenue. Cofetel is now expected to establish asymmetrical regulation, meant to reduce Telcel's power on the national mobile market.
