Antitrust Body to Probe Alleged TMX, AMX Monopoly

Mexico's antitrust regulator (CFC) will begin in no more than three weeks two separate investigations into the alleged monopoly of the telecoms market by local fixed and mobile incumbents Telmex (TMX) and America Movil (AMX), respectively, local press reported.

CFC head Eduardo Perez Motta told press the watchdog had declared Telmex a monopoly in 2001 but in October this year a court had thrown out any attempts at legal action saying there were insufficient grounds to prove there was a monopoly.

"I think that in a matter of weeks, I hope no more than three [we will start an investigation]," Perez Motta said.

CFC has said Telmex has a stranglehold on fixed line telephony with 90% of the market, interconnection and long distance telephony.

The head of Telmex's workers union Francisco Hernandez told local newspaper Reforma that Telmex was preparing its defense with the argument that the company has a much lower concentration in the most profitable areas of Mexico and greater coverage in low-income areas compared to other operators.

"They [other operators] aren't interested in the country, they're only interested in high-income customers," Hernández said.

Both Telmex and America Movil are controlled by Mexican entrepreneur Carlos Slim.

Posted to the site on 31st October 2007