Watchdog labels Telmex ‘dominant’; price controls may follow

28 Jul 2008

Reuters is reporting that the Mexican government’s watchdog, the Federal Competition Commission (FCC), has announced preliminary rulings that state fixed line operator Telmex holds ‘substantial market power’. If the rulings are ratified, the Carlos Slim-controlled operator could see regulators impose pricing restrictions and quality of service obligations, although financial sanctions have been ruled out. Rival fixed line operators Axtel and Alestra are also accused of having substantial power over the termination of calls on their networks. The rulings can be appealed.