BNamericas is reporting that Mexican telecoms regulator Cofetel has been asked to act on an interconnection dispute between Mexican incumbent Telmex and Telefonica. Telefonica has been trying to enter the Mexican fixed line market through indirectly owned subsidiary Grupo de Telecomuniciones Mexicanas (GTM). In December 2007, after Telmex had refused to interconnect the company, GTM demanded that Cofetel revoke Telmex’s concession licence for failing to meet its interconnection obligations. Telmex answered the accusation by saying that it would not provide the interconnection to GTM because it is more than 49% owned by Telefonica, higher than the government imposed foreign investment cap in GTM. Cofetel has said that the restriction, currently under review in the Mexican Congress, is a matter for the government and has nothing to do with Telmex’s obligations to provide interconnection.