Mexican
telecoms reforms are forcing the break-up of billionaire Carlos Slim's America
Movil empire, Latin America's biggest telecoms company.
Mr
Slim, one of the world's richest men, says he will bring America Movil's market
share below 50%.
Its
Telmex fixed line subsidiary has 80% of the Mexican market and its mobile
Telcel operation 70%.
The
reforms would make America Movil in its present form a
dominant player, subject
to strict new rules.
They
would include being forced to share infrastructure with rivals such as Spain's
Telefonica.
In a
move aimed at avoiding this, it will present its restructuring to the country's
new telecoms watchdog, the Federal Institute of Telecommunications (IFT).
Reforms
The
much-delayed legislation reforming telecoms and broadcasting is expected to get
final approval from Congress this week.
It
was introduced by President Enrique Pena Nieto, who took office 20 months ago
promising to boost competition in the Mexican economy.
The
new rules will also affect Televisa, the world's biggest provider of
Spanish-language content, which has more than 60% of the free-to-air TV market.
Although
America Movil has not yet said what it would sell off in order to reduce its
market share, it has said it will split its infrastructure business and
cellphone towers away from Telcel into a separate business.
Mexico's
Transport and Communications Ministry said in a statement: "This decision
could transform competition in the telecommunications sector, with improved
quality and better prices for services to end users."
If
America Movil does cut its market share below 50%, it will be allowed into
other markets, such as the pay-TV sector, which it is barred from at the
moment.
BBC
Business
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