America Movil and Telefonica enter Mexican roaming agreement

Mexican rivals Telcel and Movistar – respectively owned by America Movil and Telefonica – have signed a national roaming agreement.

The deal will likely provide a significant boost to Movistar’s 4G coverage, with Telcel confirming that customers of its second-placed rival will be able to access its network in areas where Movistar’s coverage is lacking.

America Movil’s dominance in the Mexican market was targeted two years ago by new regulation from IFT. The Mexican regulator aimed to encourage more competition and reduce national roaming charges.

Thus far the new regulations seem to have had an impact, with US firm AT&T moving into the market with the acquisition of two smaller operators, Iusacell and Nextel. While it has been establishing itself as a major player, Telcel still holds a market share of around two thirds.

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