America Movil has unveiled plans to spin off its tower mast business as a means of reducing its dominance in the Mexican telecoms market.
The new company, currently known as Telesites, would be a listed firm with the same shareholder structure as America Movil. The proposal will be voted on by America Movil’s shareholders later this month.
If regulatory approval is granted, Telesites will then be listed on the Mexican stock exchange, with stock put to a public offering. The firm would also take on around MXN21 billion ($1.39 billion) of America Movil debt.
Controlled by billionaire Carlos Slim, America Movil dominates the Mexican market to the extent that new regulator IFT has been granted powers specifically to reduce monopolistic behaviour by any one operator. America Movil is currently selling off assets in order to comply with new regulation aimed at curbing its dominance.
If the creation of Telesites goes ahead, America Movil’s competitors would be able to access around 90% of its towers, according to the operator – roughly double the amount that they can currently use.