Mexico Government Issues Final Version of Number-Portability Rules

MEXICO CITY -(Dow Jones)- Mexico's telecommunications regulator Cofetel on Monday issued the final version of rules that will allow consumers to keep their telephone number when they switch service providers as part of the government's plan to boost competition in the sector.

The regulations, published in the official gazette, will take effect in 165 days, Cofetel said in a press release.

Mexico's telecommunications industry is dominated by fixed-line operator Telefonos de Mexico and the Telcel unit of wireless giant America Movil. Both firms are controlled by Mexican billionaire Carlos Slim.

Telcel had about 74% of the country's 64.6 million mobile users at the end of September, while Telmex controls more than 90% of Mexico's fixed lines with about 18.2 million lines.

Telmex faces growing competition from cable TV companies offering "triple-play" or phone, television and high-speed Internet services.

Under local regulations, Telmex is barred from offering television until it provides number portability and interconnection services to competitors.

Telmex officials have said they expect to start offering triple play this year.

At around 1:20 pm EST, Telmex's local L shares were down 2.2% at MXN17.30 ($1.57) on low volume, while shares of America Movil were off 5.7% to MXN27.01.

-By Ken Parks, Dow Jones Newswires, 52-55-5080-3453, ken.parks@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 21st January 2008