Mexico: América Móvil, still the Dominant player: IFT

Adriana Labardini, member of Mexico’s Telecommunications regulator, IFT, stated this week that América Móvil, Mexico’s telecommunications giant and subject since March 2014 to Dominant Economic Agent status, has not significantly reduced it’s share of the market or increased effective competition, and thus will remain under the constraints of the DEA designation.

“In now way could we say that they have lost their dominance,” said Labardini, while clarifying that this designation is determined through a series of factors, which go beyond a simple matter of customers and market share.

Recent statements by América Móvil, speaking through their Director of Communications, Arturo Elías Ayub, suggested that the arrival of AT&T in Mexico’s telephone market, combined with the ‘borderless’ nature of telecomms, had changed the situation enough to consider that “the dominant player is now someone else.”

Labardini rejected this interpretation. “Combining Nextel and Iusacell’s old networks wouldn’t give AT&T anywhere ear the number of users, subscribers or the market share” needed to upset th ebalance. Besides, AT&T will also struggle with the challenges of integrating the once separate networks, as well as consolidating their platform and public image.

Furthermore, Labardini added that América Móvil has yet to formally present their divestment plan, part of the requirements for lifting the DEA designation.

Source: El Financiero

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