Telefonica takes issue with Cofeco’s lack of action

24 Feb 2010

Spanish telecom giant Telefonica has lodged a formal complaint with the Mexican antitrust body Comision Federal de Competencia (Cofeco), criticising the watchdog for discontinuing an investigation into potential anti-competitive practices by fixed line incumbent Telefonos de Mexico, BNamericas reports. Telefonica prompted a two-year investigation by Cofeco after alleging that Telmex’s bundling strategy was hindering competition. However, in August 2009 the regulator announced the findings of its probe, stating that there was insufficient evidence of any wrongdoing by Telmex, and it subsequently closed the case. In confirming its views on the matter Cofeco contended that other fixed line operators including Alestra, Avantel and Maxcom also operated a policy requiring customers wishing to take their respective internet services to also take their fixed line voice connections. As a result the supervisory body ruled that bundling services is simply a response to consumer demand.

In a new complaint raised to Cofeco, Telefonica has objected to Telmex’s decision not to pass on to the consumer a new 3% telecoms tax introduced earlier this year as long the customer is signed up to one or more of the incumbent’s high speed internet services.