AM seeking withdrawal of OECD report on Mexican telecoms sector

22 May 2012

Latin American telecoms giant America Movil (AM) has reportedly called on the Organisation of Economic Cooperation and Development (OECD) to withdraw a report on the Mexican telecoms market, with the former claiming it contains a number of false conclusions. Dow Jones Newswires cites AM chief financial officer Carlos Garcia Moreno as saying: ‘We are asking them to withdraw it, and we would expect them to withdraw it.’

The development comes after the publication of the OECD’s report in January 2012, in which it was argued that the ‘dysfunctional Mexican telecommunication sector’ had cost consumers some USD129 billion between 2005 and 2009 as a result of high prices. Further, the report cited high prices and a lack of competition as two of the main reasons for low penetration rates in the country, with the OECD recommending that asymmetric regulations be introduced for some of the major operators.

In response, AM commissioned two studies to rebut the OECD’s findings, and in a letter to the OECD Secretary-General Angel Gurria, AM CEO Daniel Hajj is understood to have argued that the alleged USD129 billion loss in consumer welfare was ‘entirely the result of the OECD’s improper manipulation of facts and flawed economic analysis’. AM executives, meanwhile, have also argued that the company was in effect excluded from the report process, with complaints that the OECD refused to provide the data used for its analysis.