Market Insight

America Movil to challenge Mexican demand for structural separation

March 10, 2017  | Subscribers Only

Seth Wallis-Jones Seth Wallis-Jones Principal Research Analyst, Service Providers & Platforms
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Following the bi-annual review of asymmetric regulations passed in March 2014 by Mexico’s Federal Telecommunications Institute (IFT) to reduce the impact of America Móvils’ significant market power (as an ‘agente económico preponderante’), América Móvil has been ordered to functionally separate and create an entity that is legally independent from Telmex and Telnor for the provision of regulated wholesale fixed services.  

  • The new legally independent unit would exclusively provide wholesale services related to the local loop, shared access and use of passive infrastructure.
  • All other wholesale services would remain provided by a business unit within Telmex-Telnor, but that wholesale unit would be separate from those providing services to end users.
  • The mobile unit would also be subject to enhanced  regulations which would facilitate MVNO operation and wholesale roaming on the América Móvils network
  • The IFT would gain oversight of rate regulation with the aim of achieving ‘economic replicability’ of both mobile and fixed line services, alongside ensuring access to information about infrastructure and regulated services

Organization
America Movil
Research by Market
Mobile & Telecom
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