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America Movil to sell assets to avoid Mexican regulation

2014-07-09 08:53:00| Telecompaper Headlines

(Telecompaper) America Movil announced plans to divest some of its assets in Mexico in order to avoid further regulation as a dominant operator. The company's Mexican subsidiaries Telmex and Telcel were designated "preponderant economic agents" earlier this year under reforms of Mexican telecom law. They are set to face further asymmetric regulation under another round of reforms going through congress. America Movil said it would sell certain assets in Mexico to a "new and solid carrier" independent from America Movil that has the experience and resources to develop the activities and "overcome the obstacle of the insufficient investment made by our  Mexican competitors". The company did not say which assets are concerned or who the potential buyer could be, but said it expects to receive a commercial price for the activities. In addition, Telcel will spin off all its base station sites, including towers and related passive infrastructure, into a new company and open these up for use by competitors. In the fixed market, Telmex is waiving its option to acquire 51 percent of pay-TV provider Dish Mexico. However it will continue to work with Dish on distributing and supporting its services. Telmex noted the same support services, such as billing and equipment rental, are available to other carriers, including cable and satellite providers. The proposals remain subject to a number of approvals, including government and regulatory bodies and the company's own board and shareholders. 

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Category:Telecommunications

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