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A greater regulatory burden for America Movil in Mexico

The IFT applied new retail and wholesale remedies on AM.

The second review comes six years after the first ex-ante remedies: The Mexican Federal Institute of Telecommunications (IFT) identified America Movil (AM) as a ‘preponderant economic agent’ in 2014. On 8 December 2020, the IFT completed the second review of the remedies imposed on AM.

New wholesale and retail remedies: These include the unlocking of devices, separating the handset contract from the service contract, and terminating promotional services upon expiry in order to avoid unwanted charges. On-net and off-net calls have to be subject to the same tariffs and service quality. At the wholesale level, the IFT mandated dark fibre access where passive infrastructure is unavailable, and disclosure of wholesale contracts to verify compliance with the equivalence-of-inputs requirement.

AM pushes back: AM argued that the review does not reflect the increase in competition in the last six years. However, AM still holds a share of subscribers higher than 50% in fixed broadband, and higher than 62% in mobile. AM is also still challenging the functional separation of its fixed retail and wholesale divisions, imposed by the IFT in 2017.