Mexico Lawmakers Approve Telecom Bill Challenging Slim’s Power
Mexico Lawmakers Approve Telecom Bill Challenging Slim’s Power
By Patricia Laya Jul 9, 2014 8:30 AM CT
Mexican lawmakers approved a bill to create more competition in telecommunications, paving the way for regulatory changes that are forcing billionaire Carlos Slim’s America Movil SAB to break up its dominant phone business in the country.
Mexico’s lower house voted 318 to 107, with no abstentions, in favor of the bill, which was passed by the Senate over the weekend after more than six months of delays and legal challenges. The law will need the endorsement of President Enrique Pena Nieto, who has spearheaded the push for the sweeping legislation.
America Movil is already bowing to the pressure of the imminent legislation by announcing last night that it will divest some assets to a newly formed independent company, reducing its market share in Mexican landlines and mobile phones to below 50 percent to appease regulators.
Supporters have said the new rules will help spark competitors to take on America Movil along with billionaire Emilio Azcarraga’s Grupo Televisa SAB (TLEVICPO), which has dominated the broadcast industry for decades.
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http://www.bloomberg.com/news/2014-07-09/mexico-lawmakers-approve-telecom-bill-challenging-slim-s-power.html