Telmex, Telnor ‘functional separation’ edges closer as IFT approves personnel transfer

22 Jan 2020

The ‘functional separation’ agreed by America Movil (AM)-backed fixed line operators Telmex and Telefonos del Noreste (Telnor) is another step closer to completion after the Federal Telecomunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved the transfer of personnel from the two telcos to a new wholesale company. The affected staff will switch roles no later than 31 January, paving the way for the plan’s final implementation in March this year.

According to TeleGeography’s GlobalComms Database, the IFT handed down the separation order in March 2018 – giving the telcos two years (i.e. by March 2020) within which to separate their retail and wholesale businesses. The decision – which relates to Telmex’s Agente Economico Preponderante (AEP, or preponderant economic agent) status – means that AM must create a wholesale business unit to provide other concessionaires with voice and broadband access, intercity and international long-distance dedicated-links and access to certain passive infrastructure services, including the shared use of towers.

AM has previously noted that the new entity will be a direct subsidiary of Telmex and will receive the necessary assets and employees to provide the unbundled services, although its board of directors has resolved not to subsidise or finance the new company.