SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Mexico Breaks Up Telecom Monopoly, Plans State-Owned Mobile Network

Master Agent Featured Articles

Mexico Breaks Up Telecom Monopoly, Plans State-Owned Mobile Network

 
October 23, 2014

Share
Tweet
  By Clayton Hamshar, Contributing Writer
 


The Mexican government has recently confirmed plans to launch its own national mobile network in order to promote competition among telecommunications operators in the country.

Currently the telecom industry is dominated by America Movil, owned by business tycoon Carlos Slim, as identified by Mexico’s Federal Telecommunications Institute (IFT) and reported by Nearshore Americas.


Telmex, America Movil’s wireline division, controls about 80 percent of the market in Mexico, whereas its wireless division Telcel (News - Alert) controls about 70 percent. New regulations from the IFT will limit telecom companies to a maximum market share of 50 percent and impose a few other stringent measures, such as prohibiting America Movil from charging national roaming fees. Additionally, the company will be required to share its infrastructure with other operators, particularly in the local loop segment, and the IFT will closely monitor interconnection fees.

Those working on the project hope it will significantly help smaller vendors gain a foothold, who can then use the state-owned network to provide wireless coverage and avoid the immense capital necessary for developing a new infrastructure. The resultant competitive market will greatly reduce the prices of telecom and broadcasting services for the public.

The government hopes to have the network up and running by 2018, with the vendor selection process to be completed by mid-2015. Several telecom vendors, including Ericsson (News - Alert) and Alcatel Lucent, have already submitted bids for the project which is valued at over $10 billion.

America Movil has formed a committee to assess the impact of the upcoming regulations and search for opportunities to divest parts of its assets and maintain compliance. The company is reportedly negotiating with several foreign telecom giants including AT&T, Bell Canada (News - Alert), China Mobile Ltd. and SoftBank Corp.

The Mexican government and the country’s telecommunications and transport ministry have reportedly agreed on terms and conditions for development of the project, and are taking the first steps toward launching it.

 
Master Agent Homepage ›





Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy