America Movil's Mexican Market Share to Fall to Below 50% Within 5 Years
Mexico's America Movil should see its market share cut from 70% to below 50% by 2018 following the passing of a telecoms reform bill, a leading politician has said.
The politicians have wrangled for years over how to reform the monopoly dominated telecoms and media markets, but earlier this year agreed to pass a reform of the laws that should make competition easier for the smaller companies.
A further bill is still needed to implement the changes, and that is due to be debated in the coming weeks, leading to concerns than lobbying the Carlos Slim's companies would weaken the effect.
However, Javier Lozano, head of the Senate's transport and communications committee told the Reuters news agency that he is confident that the bill will be passed largely unscathed and that the reforms would be carried out.
"With these instruments at hand, there have to be very visible changes in the medium term," Lozano, a member of the National Action Party (PAN), said in an interview.
He also confirmed that at least the mobile side of the industry should see rapid changes, with America Movil's market share below the 50% mark by the time President Enrique Pena Nieto leaves office in 2018.
As a consequence of the changes, Telefonica's Mexican subsidiary recently set itself a target of tripling its share of the local market by revenue as it focuses on mobile data services and targeting small business customers.
The company currently has a market share of the industry revenue of 12 percent, although it has a customer base market share of 20 percent.
The smaller networks may also benefit from a radio spectrum auction which is expected to take place once the government reclaims block of expiring 2.5Ghz spectrum next year.