America Movil hit with USD 70 million Telnor fine

News Broadband Mexico 28 JAN 2020
America Movil hit with USD 70 million Telnor fine

Mexican telecommunications regulator IFT has fined America Movil's fixed-line unit Telefonos del Noroeste (Telnor) a total of MXN 1.31 billion (around USD 70 million) for breaching the requirement to share information about the availability of its passive infrastructure, such as posts and ducts, with rivals via the electronic management system SEG. In a statement, the watchdog said Telnor had failed to share the information as of September 2017 and it was therefore imposing a fine amounting to 6 percent of the operator’s revenues.

America Movil immediately issued a statement slamming the fine, describing it as “arbitrary, illegal and disproportionate”, as well as detrimental to “legal certainty in a sector that requires important investments.” It pledged to exercise “all legal remedies” to challenge it.

America Movil’s fixed-line Telmex and Telnor units are required to share their infrastructure with a view to “promoting the development of competition in the telecommunications sector” in accordance with a 2014 ruling by the watchdog declaring the company a "dominant agent" in the sector. Last week the IFT approved America Movil’s proposal for the functional separation of the units ahead of a 31 January deadline.

 


 

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