Mexican telephony workers union backs possible Telmex split

Mexico's telephony workers union (STRM) said it would support Telmex creating a separate company in order to elude the asymmetric measures imposed by regulator IFT as long as the company respects workers' rights.

Francisco Hernández, secretary general of the STRM, said after a meeting with Mexico's national workers union (UNT) that Telmex is planning changes in its corporate structure, according to local media.

"Changes in the company are being planned, as since the new telecommunications law was approved, the companies that have more than 50% of the market are called preponderant [agents] and if this is added to the fact that Telmex can no longer charge for the use of its network for long-distance under the calling party pays scheme, revenues have fallen significantly," he was quoted as saying by daily El Economista.

Telmex was declared a preponderant economic agent because it had over 60% of the fixed telephony market. According to Hernández, splitting Telmex into two companies could help the company free itself from this status and thus shed the asymmetric measures and sanctions this entails. He pointed out that sector watchdog IFT's asymmetric rules force Telmex to subsidize other telcos and level the playing field by sharing its infrastructure.

However, the union leader said that "we think it's better to keep the company together."

The STRM has only held one meeting with Telmex's board of directors regarding the possible division, according to local media. However, the details of when and how this could take place remain unknown.

The STRM was unable to comment on the reports when contacted by BNamericas.