America Movil is reportedly planning to spin-off its wireless towers throughout Mexico in response to recent legislative overhauls aimed at reigning in the dominance of the wireless company.
According to reports, the company will spin off the assets to reflect the value of the infrastructure, the company said Tuesday. Despite earlier speculation that a spin-off would lead to a divestiture of the assets altogether, America Movil said it has no plans to sell the towers.
The plans are part of America Movil’s response to recent changes in how Mexico regulates media industries. America Movil was recently declared to hold a dominant position in the telco industry, with 70 percent of wireless accounts and 80 percent of landlines.
The company will now have to present a breakup plan of the company to the nation’s telecommunications authority; during the announcement, America Movil said it is still working on that plan, which will reduce the company’s hold on the market to under 50 percent.
Full content: Bloomberg
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