Mexican watchdog forces Telmex to share network

MEXICO CITY, Nov 16 (Reuters) - Mexico's telecom watchdog Cofetel has ordered the country's dominant fixed-line telephone company, Telmex (TELMEXL.MX: Quote, Profile, Research, Stock Buzz)(TMX.N: Quote, Profile, Research, Stock Buzz), to allow other operators access to its network, throwing out Telmex's challenge to the plan.

Telmex, which is controlled by billionaire Carlos Slim and controls 90 percent of all fixed lines in Mexico, must allow smaller competitors to connect to its network of 18.2 million lines and cannot set any preconditions for connection.

The move is part of a drive by regulators to increase competition in the Mexican telecom sector and bring down costs for businesses and households in Mexico, which analysts say are some of the highest among industrialized nations.

"Any telecommunications company ... must interconnect its network with another company that requests a connection," Cofetel said in a statement.

Cofetel did not say what sanctions it could implement against Telmex if the company refused to open up its network. Telmex was not immediately available for comment.

Mexico's monopoly watchdog said in late October it will start two new investigations into Telmex's dominance, the second time in a decade that the Federal Competition Commission will probe the company.

Mexican telephone and cable television companies are gearing up to offer so-called "triple play" services, offering telephone, television and Internet access via the same connection. (Reporting by Tomas Sarmiento; Editing by Gary Hill)