(Telecompaper) Mexican operator America Movil said it has been declared dominant in the telecoms market by the Federal Telecommunications Institute (IFT). The (IFT) said America Movil therefore needs to be subject to tougher regulation. The regulator also declared that 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 regulation of its local subsidiaries Telmex (fixed) and Telcel (mobile) will include asymmetric interconnection rates, regulated access to passive infrastructure, local loop unbundling, retail-minus and LRIC pricing of wholesale dedicated links, the elimination of national roaming charges and mandatory roaming access for other operators and virtual providers. The operator must also provide reference offers for all the above services and will be subject to quality and reporting obligations. America Movil will also face limits on its retail activities. These include an end to Sim locks, limited exclusivity on handsets and broadcast content, an obligation to offer all services in a bundle separately and review of certain retail prices. The IFT said its anti-trust measures would be reviewed after two years, whereupon it could opt to take stronger action against dominant players, or ease the regulatory burden. America Movil said it was still assessing the full impact of the proposed regulation.