Operators, Authorities Call for Restrictions to AMX Entry"

International telcos and Puerto Rico's local telecom regulator JRT are lobbying the US telecoms regulator FCC to ensure Mexico's América Móvil does not dominate the Puerto Rican market once it completes the acquisition of the island's largest operator PRT, local daily El Nuevo Día reported.

Spain's Telefónica as well as US and Caribbean wireless and broadband provider Centennial are among the telcos that believe Latin America's largest mobile group, AMX, would be overly dominant in the market.

Telefónica is present on the island through long distance operator Telefónica Larga Distancia and mobile operator Movistar, while Centennial operates another of Puerto Rico's five mobile operators. The other mobile operators are Cingular, PRT/Verizon Wireless and SunCom Wireless.

AMX has offered Verizon Wireless US$939mn for its 52% stake in PRT and the Puerto Rican government has also agreed to sell its 28% stake for US$500mn. AMX is also buying Verizon's 29% stake in Venezuela's Cantv for US$677mn and 100% of Dominican Republic operator Verizon Dominicana for US$2.06bn.

Even the US justice department and the FBI have expressed concern about AMX's entry into Puerto Rico.

Telefónica Larga Distancia has asked the FCC to ensure there are measures in place to stop AMX and AT&T Wireless colluding against smaller operators, since between them they will have a 56% market share.

AT&T Wireless is in the process of acquiring mobile operator Cingular Puerto Rico, but also has a 7.9% equity stake and a 24.5% voting stake in AMX, according to Telefónica Larga Distancia marketing and strategy VP Rafael Serrano.

"One has to be very careful with [América Móvil]," the paper quoted Serrano as saying.

BNAmericas.com"

Posted to the site on 8th August 2006