Telmex to face first long-distance resellers

17 Aug 2005

The Mexican government has published its new regulations on reselling domestic and international long-distance telephony services. The rules, which have come into effect immediately, will allow companies without their own infrastructure to buy capacity from network owners such as Telmex and resell that capacity to end users. The new regulations bring Mexico’s USD4 billion long-distance market into compliance with World Trade Organisation requirements. US trade bodies had been pushing for the sector to be opened to greater competition. Although former monopoly Telmex has faced competition in the long-distance market since 1997 it still controls almost 80% of traffic. The new regulations should benefit both alternative operators and consumers, who are likely to see price reductions.

Mexico, Telefonos de Mexico (Telmex)