Charles in charge

Carlos Slim shoved right where he wants to go

Carlos Slim is redefining the Mexican wave. The billionaire's America Movil agreed to say goodbye to a portion of its $70 billion telecommunications empire to satisfy competition regulators. After years of fighting a breakup, the abrupt concession suggests Slim was ready to accelerate the reallocation of his capital anyway.

To become one of the world's richest men often depends on dominance. So it is with Slim, who controls 80 per centof Mexico's fixed-line telephone business and 70 per centof the wireless market. Though many have tried to shrink him down to size since he bought the Telmex monopoly from the state in 1990, President Enrique Peña Nieto is the first to strike a significant blow.

America Movil will slash its share to below 50 per cen tbut could still shape the telecom market with its choice of a buyer for its assets, perhaps an outsider like AT&T. And cutting back in the slow-growth nation hardly seems onerous. Slim's telecom operations in Brazil, Colombia and the United States are adding customers at a faster rate. He is also turning to Europe, buying Telekom Austria and targeting the Dutch KPN.

There are better ways to bet on Mexico, too. Slim is keen on television, an industry from which authorities have excluded him so far. Scaling back in telephone and the renouncement of an option to buy a majority of satellite operator Dish Mexico may clear the way. Household access to pay-TV is significantly lower than elsewhere in the region, according to trade group LAMAC. In anticipation, Slim has been acquiring programming rights and launched a cheaper competitor to Netflix.

He also has shown renewed interest in the energy sector. The end of state-owned Pemex's monopoly may provide opportunities to complement Slim's investments in such firms as oil and gas software developer WellAware. And Slim, who bought shares in a Mexican bank as a young boy, could set his sights on something altogether bigger if Citigroup opts to unload scandal-embattled Banamex.

Peña Nieto will probably get credit for finally pushing Slim out of control of Mexican telecom. Ultimately, though, the billionaire may end up right where he wanted to go.