Friday, November 1, 2013
New regulation in Mexico is going to open the doors to other companies to increase the competition in the telecom market. It is currently dominated by America Movil SAB. The company was declared “dominant” in April as it currently has more than 50% of the market. In the coming months, the regulators will have to actions such as “unbundling” which would allow smaller rivals to get access to the dominant player’s network. In addition, regulators might also ask dominant players to engage in asset sales. Another major company that has been declared a dominant player is Televisa as it has over 50% of the television broadcast market. In the coming months, the regulators hope to make the market more competitive by allowing smaller players to enter the market.