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America Movil must Continue Fixed Separation despite Appeal

America Movil must Continue Fixed Separation despite Appeal

America Movil must continue splitting its mobile and fixed businesses in Mexico despite its legal challenge against the order.

In an effort to reduce the operator’s dominance in the market, Mexican regulator IFT earlier this year ordered America Movil to spin off its fixed business Telnor from its mobile unit Telmex. The decision was taken after a progress review of Mexico’s 2014 telecom industry reforms, which were aimed at improving competition.

America Movil has taken legal action in an attempt to gain more influence over the separation process, with the challenge currently under review by a federal judge. However, the IFT has stated that the process cannot be held up by the legal dispute, and therefore must be completed within the two-year timeframe that has been allocated for it.

During the process, America Movil will have to outline its proposals for the transfer of Telnor’s debt and assets. The IFT has already green lit the constitutional bylaws covering the wholesale units that the separation will create, UTM and Umnor.

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