Cofeco confirms Telmex dominant status

7 Jul 2009

Less than a week after rumours that Mexican incumbent Telefonos de Mexico (Telmex) could face increased regulation on the back of an investigation into the fixed line sector by the country’s competition agency, Comision Federal de Competencia (Cofeco), the watchdog has formally announced its findings. Cofeco has ruled that Telmex is dominant in the local transit and leased line markets, opening the way for regulator Comision Federal de Telecomunicaciones (Cofetel) to introduce more restrictive legislation directed at the operator. Commenting on the ruling Eduardo Perez Motta, Cofeco’s chairman, said: ‘The resolutions…in these two markets are an important element of the strategy that Cofeco has continued to promote greater competition in telecommunications for the benefit of consumers.’ Decisions on four other areas of Telmex’s business, including the origination and completion of local calls, have yet to be made.