Telmex to face increased regulation?

2 Jul 2009

According to Bloomberg, Mexico’s dominant fixed line and broadband operator Telefonos de Mexico (Telmex) is set to face increased scrutiny from the government following a review of the country’s telecoms sector by the antitrust watchdog. Citing comments from a commissioner at regulator Comision Federal de Telecomunicaciones (Cofetel), it is understood that the competition agency Comision Federal de Competencia (Cofeco) will issue a declaration that Telmex dominates in carrying local calls and in leasing capacity. Such declarations will grant Cofetel increased powers to oversee the price charged by the incumbent for its services. The study of the fixed line sector began in February 2008, when Cofeco announced it would act on complaints that some companies had adopted ‘monopolistic’ practices. The study is also expected to investigate whether Telmex, or any other operator, dominates in origination and completion of local calls.