Mexican cablecos oppose Telcel and Telmex tie-up proposals

19 Jan 2010

Mexican cable television operators have requested that the country’s antitrust watchdog, the Comision Federal de Competencia (Cofeco), reject plans by billionaire businessman Carlos Slim to merge his wireless and fixed line operators, Telcel and Telmex, Reuters reports. The Camara Nacional de la Industria de Telecomunicaciones por Cable (CANITEC), a trade body representing cablecos including Megacable, has claimed that, should the merger be approved the tie-up could effectively cripple competition in the Mexican telecommunication sectors. ‘It would be abhorrent for Cofeco to permit … Telmex and Telcel to formalise and increase what in practice are abuses of their status as dominant carriers in telecommunications,’ CANITEC said in a statement.

The plea comes after it was revealed last week that mobile group America Movil (AM) plans to consolidate both Slim’s other telecoms companies – Carso Global Telecom and Telmex Internacional (Telint) – with a view to creating a regional telecoms giant offering fixed line, wireless and broadband services, to more than 250 million subscribers.