America Movil may not face tougher regulation without asset sale - regulator

viernes 27 de marzo de 2015 17:08 GYT

MEXICO CITY, March 27 (Reuters) - Mexico's telecom regulator will not necessarily impose tougher rules against Carlos Slim's America Movil if it does not sell off assets, the head of the sector regulator said in an interview on Friday.

Mexico's Congress finalized sweeping telecoms reform last year aimed at curbing America Movil's dominance in the sector, prompting the company in June to say it would sell a chunk of assets to reach below a 50 percent market share.

Federal Telecommunications Institute (IFT) President Gabriel Contreras said on Friday that a lack of a sale would not necessarily prompt tougher regulations against the company in a March 2016 revision.

"The problem of the market is not the size of the operator, this is a market with economies of scale, it's capital intensive, the problem is having that power and abusing it," Contreras said. (Reporting by Christine Murray and Tomas Sarmiento; Editing by Bernard Orr)