Vote on removal of foreign ownership cap for fixed line telcos expected by year-end

6 Oct 2008

By the end of 2008 Mexico’s lower house of Congress may vote to allow foreign companies to own majority stakes in fixed line telephone carriers, Bloomberg is reporting. Citing Mauricio Ortiz Poal, a member of the house’s economic committee and the co-author of the bill, the legislation would allow foreign companies to own 100% of fixed line operators, with the intention of lower the cost and improving the quality of phone services in Mexico by boosting competition. ‘We want the industry to evolve faster, for services to be better, for costs to fall… all this happens through competition,’ said Ortiz. Similar proposals were introduced in June 2007, but failed after resistance from some legislators. According to TeleGeography’s GlobalComms database, Mexico’s fixed line market is dominated by Telmex, which claimed more than 90% of all connections at the end of 2007.

Mexico, Telefonos de Mexico (Telmex)