Cofetel calls for further price reductions from Telmex

19 Jan 2011

The Mexican telecoms regulator, Comision Federal de Telecomunicaciones (Cofetel), has reportedly called on fixed line incumbent Telefonos de Mexico (Telmex) to reduce the price it charges for basic services, according to Bloomberg, citing reports from Reforma. It is understood that Cofetel’s president, Mony de Swaan, has said that if no agreement is reached between the regulator and the telco then the former will determine final prices in April 2011. The move comes after Telmex’s rate proposals for the next four years were rejected by the watchdog.

As previously reported by CommsUpdate, last week Telmex announced that it had reduced its fixed-to-mobile voice call charge by 10.6% to MXN1.35 (USD0.11) per minute, effective 1 January 2011. Furthermore, the telco pledged not to pass on the cost of a 1% rise in VAT and IEPS (special tax on production and services) to its customers, and said it would freeze most prices across its range, whilst dropping the tariff for its ‘Infinitum’ internet access packages.