Increased competition in Mexico may help economy
March 12, 2013
President Enrique Peña Nieto and Mexico's major political parties have sent a bill to Congress that would heavily change telecommunications within Mexico. The law would deem any company with a market share over 50 percent to be a dominant player that may be subject to sanctions.
The goal of the bill is to create more competition in the Mexican communications industry and boost the economy. Currently, the industry is dominated by monopolies such as America Movil, which owns approximately 80 percent of Mexico's land lines and approximately 70 percent of the mobile market, according to the New York Times.
"We support the opening of foreign investment in telecommunications services," America Movil said in an e-mailed statement. "We compete in 18 countries where we benefit from this type of policy of openness to investment, and we've always supported such openness."
Regulators hope the changes will result in lower prices for consumers. The bill is another effort by President Nieto to reduce the significant wealth divide in Mexico and also would auction rights to two new TV channels to companies other than Mexico's largest, Televisa and TV Azteca.