Mexico’s Supreme Court calls for review of AM units’ dominant status

22 Aug 2011

Latin American telecoms giant America Movil (AM) has reportedly won a Supreme Court ruling which will force Mexico’s Comision Federal de Competencia (Cofeco) to review findings that its local fixed line and wireless units – Telefonos de Mexico (Telmex) and Telcel – are dominant in their respective sectors. According to Bloomberg, the Supreme Court’s decision has called for a reconsideration of a number of findings made in 2009 by the antitrust watchdog regarding Telmex’s position in the fixed line sector; as noted in TeleGeography’s GlobalComms Database, in July 2009 Cofeco issued a declaration that the incumbent was dominant in carrying local calls and in leasing capacity, following which in October 2009 it named Telmex as a dominant force in the provision of wholesale services in the long-distance sector and in the market for the completion of fixed line voice calls. With regards to the wireless market, the Supreme Court’s latest ruling means that a January 2010 finding that Telcel was the dominant player in the mobile sector will also be re-examined. As a result of the requirement for Cofeco to reopen its assessment of the two operators’ standings in their respective sectors, it is understood that telecoms regulator Comision Federal de Telecomunicaciones (Cofetel) will now have to wait for the review to be completed before it can move forward with the creation of new regulations which will aim to reduce the market power of both Telmex and Telcel.