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America Movil Approves Tower Spin-Off Plan

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America Movil has secured approval for a plan to spin off its Mexican towers into a separate company, which will see the creation of the region's second largest tower operator.

America Movil put the proposal to shareholders, who approved the plans to create the new company, Telesites, with around 11,000 towers across Mexico.

It will compete for tower rentals with the market's largest player, American Tower Corp.

The plan was approved "with a favorable vote of 98.2 percent of AMX's total ordinary shares outstanding," the company said in a statement.

America Movil, controlled by billionaire Carlos Slim is facing regulatory pressure to reduce its market dominance in its home market, and is looking at the towers spin-off as an option that would rivals to rent capacity and expand their coverage quicker than otherwise possible.

Under an agreement with the regulator, rental prices to rivals can be arbitrated if the mobile networks are unable to agree a market price for network access.

America Movil is looking to reduce its market share to below 50% so that it can be removed from punitive oversight from the regulator, which has ruled that the company is currently dominant within the market.

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Tags: america movil  Mexico