América Móvil to challenge IFT on Telmex resolution

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Tuesday, March 6, 2018

América Móvil has said it will appeal a regulatory resolution determining the terms under which its units Telmex and Telnor will separate the provision of wholesale fixed services.

Carlos Slim's telecoms giant says the separation plan ordered by IFT differs significantly from the plan presented by Telmex and Telnos to comply with the regulator's 2017 separation order – part of asymmetric measures imposed on mobile and fixed "preponderant agent" América Móvil under the 2013 telecoms reform.

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"Within Telmex and Telnor a business unit shall be created to provide certain wholesale services to other concessionaires, including interconnection, co-location, intercity and international long-distance dedicated-links, resale of telephone lines, broadband and bundles, as well as certain passive infrastructure services, including shared use of towers," said América Móvil in a statement in response to the IFT resolution.

The new unit will be independent of América Móvil and its subsidiaries, and its cost structure shall be covered through the provision of services to third parties.

However, América Móvil said that the prices determined by the IFT for wholesale services "are substantially lower with respect to international benchmarks" and do not take into account best practices and incentives for promoting investments to boost service coverage and technological upgrades.

"América Móvil proposed a price structure for the new entity which considered such incentives. Unfortunately, such structure was not taken into account by the IFT," the company said.

Telmex and Telnor will have two years to implement the separation ordered by the IFT.