Saturday, 21 October 2017

Mexico rejects America Movil functional separation plan

By Mary Lennighan, Total Telecom
Friday 06 October 17

Dominant telco given 30 days to submit a modified proposal for the separation of its wholesale operations

Mexico's telecom regulator has told America Movil to try again with its plan for functional separation. The Instituto Federal de Telecomunicaciones (IFT) has rejected a proposal presented by the market's biggest operator and given it a month to come up with a modified version…

Mexico's telecom regulator has told America Movil to try again with its plan for functional separation.

The Instituto Federal de Telecomunicaciones (IFT) has rejected a proposal presented by the market's biggest operator and given it a month to come up with a modified version, it announced this week.

Having assessed the documentation and information supplied by America Movil, which it refers to simply as the 'dominant player', the IFT said "this proposal should be modified in order to ensure the effectiveness of the functional separation and the fulfilment of the objectives laid out in the constitutional reform of the telecommunications market."

Earlier this year the IFT ordered America Movil to separate its wholesale operations as part of a wider review of the asymmetric regulations imposed on the telco three years earlier, when it was ruled to have a dominant position in the market.

America Movil "must set up a new company – which will exclusively provide wholesale services around, as a minimum, the access network, and the passive infrastructure and dedicated local links associated with that network – as well as a wholesale division within Telmex and Telnor, which will provide the remaining wholesale services," the IFT reminded the market.

It has given America Movil 30 working days to present a modified proposal to achieve that wholesale separation.

The effective provision of wholesale services will guarantee access to all operators under non-discriminatory conditions, driving healthy and open competition, the regulator said.

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