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Tuesday, 03/03/2015 7:37:56 AM

Tuesday, March 03, 2015 7:37:56 AM

Post# of 72584
Mexico’s Telecom Reform

Increasing Competition
To encourage competition, this is the first time the Mexican telecom regulator has had the power to regulate the
sector asymmetrically. It can now declare firms either preponderant in a particular sector or “with substantial market power” in the provision of a particular service and then issue regulations that apply only to those firms. This authority has two objectives: First, to prevent dominant firms from using their market power to implement anticompetitive policies,such as preventing competitors from entering the market or overcharging consumers (above the price a competitive market would establish or providing poor customer service. And second, to encourage preponderant firms to divest – to sell enough assets to reduce their market share. In other words, the Mexican government is not going to be a “trust buster” in the telecom sector,
but it can and does create a regulatory environment that encourages dominant players to take this action on their own. And as noted below, the core target is América Móvil.
Other measures to increase competition promote investment in the telecom sector. This begins with a change in the nature of
telecommunications concessions in Mexico. Mexico will no longer issue concessions for individual telecom services. Instead, the IFT will issue single concessions that allow operators to provide any and all telecom services and thus compete in every sector of the industry – open TV/radio, pay TV, Internet, and cellular and fixed-line telephone. In addition, the IFT will not grant concessions solely on the basis of price and the applicant’s capacity to provide telecom services, but also on the prevention of renewed concentration . To further promote investment, the government will auction the spectrum for two additional TV networks, and the rights to construct a new broadband network; the reform also requires Televisa and América Móvil (Telmex and Telcel) to allow all telecom firms operating in Mexico to use their infrastructure


http://www.manatt.com/uploadedFiles/Content/3_Practices/Manatt_Jones_Global_Strategies/MJGS-Mexico-Telecom-Reform.pdf


O2 Secure Wireless profits on the revival of the breakup of Mexico's Leading Telecommunications Firm

“The breakup of Mexico’s leading telecommunications firm, América Móvil, could not have come at a better time for 'OTOW'. We are excited that billionaire Carlos Slim is reviving the stalled plans of such a vast break up. With so many new opportunities opening up in LAC, 'OTOW' poised to surpass revenue forecast,” said Val Kazia, CEO of 02 Secure Wireless Inc. After more than two decades since the acquisition in Mexico's state phone monopoly, Carlos Slim announced the breakup of part of his company in July of 2014 as Mexico's Congress put the finishing touches on new telecommunications laws to guide the implementation of last year's constitutional overhaul to increase competition in the telecoms market

http://www.otcmarkets.com/stock/OTOW/news/O2-Secure-Wireless-profits-on-the-revival-of-the-breakup-of-Mexico-s-Leading-Telecommunications-Firm?id=97043&b=y