Mexico News- Mar.23

Posted by the Generals on March 23, 2011, 4:02 pm
187.146.128.251

Subject: Mexico News DAILY March 23, 2011 LatinNews Daily - 23 March 2011 Mexican telecoms row set to continue Development: On 22 March, Mony de Swaan, president of Mexico’s telecoms regulator, Comisión Federal de Telecomunicaciones (Cofetel), told the senate that his organisation’s ‘resolutions’ (effectively recommendations) were not final and could be challenged in the courts. Significance: This means that the current row between Telmex and Telcel, two companies controlled by the world’s richest man, Carlos Slim Helú, and Mexico’s big broadcasters (TV Azteca and Televisa) will continue until Cofetel produces its final report on Telmex’s application for a broadcasting licence. The broadcasters oppose this application, arguing that Telcel and Telmex’s high connection charges for access to their subscribers are keeping them out of Mexico’s booming mobile telecoms business. Key points: • Mexico’s anti-trust watchdog, the Comisión Federal de Competencia, is in favour of the broadcasters and the telecoms companies entering each others’ markets. • De Swaan admitted that Cofetel had no powers to force cheaper connection charges on operators. Slim says that he will only drop his connection charges if the broadcasters’ mobile companies (such as Iusacell, which is controlled by TV Azteca’s dominant shareholder) lower their final prices to users. Currently, however, Telcel has taken out injunctions to prevent Cofetel’s recommended (and lower) connection charges coming into force.

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