America Movil forms committee to consider strategic options in wake of telecoms reforms

26 Jun 2014

In the wake of wide-ranging reforms in the Mexican telecoms market, Latin American telecoms giant America Movil (AM) has announced the creation of a strategic committee which it says will ‘assess the various structural, commercial, technological and other options available to [the company], as well as the opportunities offered by the new Mexican regulatory framework’.

As previously reported by CommsUpdate, in March 2014 new telecoms regulator the Instituto Federal de Telecomunicaciones (Ifetel) named Carlos Slim-owned AM as holding significant market power (SMP); at that date the watchdog also took the somewhat unusual step of naming two of Slim’s other companies, bank Inbursa and conglomerate Grupo Carso, as being dominant in the telecoms sector by dint of the fact that they have the same ‘economic interests’ as AM. With the company’s failing to succeed in having an appeal against the dominance ruling accepted by the Supreme Court just a few days ago, AM said it continued to await the discussion and approval of the implementing legislation as with respect to the telecommunications and broadcasting sectors that was submitted to the Mexican Congress in March 2014. It has noted that any recommendations arising from the committee will be made available to the company’s board of directors and, as the case may be, its shareholders’ meeting, for discussion.