Mexico imposes restrictions on Slim

Slim's America Movil controls about 80% of Mexico's fixed-line business via its Telmex unit and some 70% of the mobile sector through its Telcel unit

Mexico's telecommunications watchdog unveiled a slew of regulations on Friday to claw back the massive telephone business of billionaire Carlos Slim, but said it would not order a break-up of his companies for now. Mexico is trying to open up its phone and TV industries to more competition following last year's passage of a major telecoms reform that targets the vast market shares enjoyed by Slim and the country's no. 1 broadcaster, Televisa.

Slim's America Movil controls about 80 per cent of Mexico's fixed-line business via its Telmex unit and some 70 per cent of the mobile sector through its Telcel unit. Customers have long complained about high prices and shoddy service.

As was expected, the Federal Telecommunications Institute (IFT) declared America Movil "dominant", and therefore needs to be subject to tougher regulation. That will include banning the company from charging national roaming fees.

The IFT also declared Slim's bank Inbursa and conglomerate Grupo Carso were dominant in telecommunications because they were part of a group with the same "economic interests" as America Movil."The measures also prevent evasion of regulation through a subsidiary," said Gabriel Contreras, head of the IFT, which has sweeping powers to regulate the market, including the authority to break up companies found to be impeding competition.