UPDATE 3-Mexico telco regulator to slap measures on market dominated by Slim
By Tomas Sarmiento and Elinor Comlay
MEXICO CITY, March 6 (Reuters) - Mexico's telecoms regulator said on Thursday it would take steps to boost competition in a market dominated by billionaire Carlos Slim's phone giant America Movil, exercising far-reaching new powers it was granted by the government last year.
The Federal Telecommunications Institute (IFT) said it had determined who is dominant, or has an oversized market share, in the telecoms and broadcast sectors, even though legislation to implement the sweeping telecoms reform of 2013 is still pending.
Created by the reform with the power to break up dominant players, the IFT did not name the companies in question but said it was it was in the process of notifying the firms concerned.
America Movil has about 80 percent of Mexico's fixed-line business via its Telmex unit and some 70 percent of the mobile sector through its Telcel subsidiary.
A spokesman for America Movil said the company had yet to be notified. Slim's son-in-law Daniel Hajj, the Chief Executive Officer of America Movil, said last year he expected the company to be declared dominant.
A source familiar with the ruling told Reuters broadcaster Televisa, the world's largest Spanish-language content producer, had been notified of its dominant position. Televisa has more than 60 percent of the TV market and has long been accused of wielding too much political power.
The dominance ruling is a key part of the government's telecoms reform, which has lifted expectations that Mexico might finally tackle the extraordinary power enjoyed by a select few companies in Latin America's second largest economy. Continuación...