The Mexican regulator Ifetel has named the players that it considers to be most dominant in the telecoms and broadcast sectors.
These players – widely expected to be Carlos Slim’s America Movil and Telemex, along with broadcaster Televisa – will be the target of new regulation aimed at breaking the market dominance of overly monopolistic companies. America Movil has a market share of around 70%, while fixed-line operator Telmex has around 80% of the country’s subscribers
Market dominance is an issue that President Enrique Pena Nieto has been keen to address, and his administration is introducing new legislation to foster competition. The new regulator Ifetel can greater enforce anti-trust legislation, to the point that it can force companies deemed overly dominant to sell assets.
However, this is an extreme measure and is unlikely to be the first resort for Ifetel, particularly as there are more obvious and less harsh options. For example, America Movil could be forced to let smaller operators use its infrastructure.