Cofeco upholds ruling on Telmex dominance in fixed calls sector

1 Sep 2011

Following on from reports earlier this month that Latin American telecoms giant America Movil (AM) had won a Supreme Court ruling forcing Mexico’s Comision Federal de Competencia (Cofeco) to review findings that its local fixed line and wireless units – Telefonos de Mexico (Telmex) and Telcel – were dominant in their respective sectors, the antitrust watchdog has confirmed an earlier finding of dominance with regards to the fixed line incumbent. According to the Wall Street Journal, Cofeco has reiterated a previous ruling that Telmex is dominant in the market for the completion of calls to fixed lines, with the watchdog revealing that commissioners had voted unanimously to uphold the decision. The regulator noted that the ruling only establishes that Telmex has substantial market power however, stressing that it did not imply the existence of monopolistic practices, but it did note that the confirmation of its position meant that the telecoms regulator, Comision Federal de Telecomunicaciones (Cofetel), is now in a position to apply asymmetrical tariffs and other regulations to Telmex.