Mexico widens power probe of Slim's America Movil

By Chris Aspin

MEXICO CITY, April 30 (Reuters) - Mexico's antitrust watchdog on Wednesday widened once more a probe into monopolistic practices by telecommunications companies controlled by billionaire tycoon Carlos Slim.

The Federal Competition Commission said it is starting an investigation to determine whether any company wields "substantial power" in Mexico's local cell phone market, a thinly-veiled reference to Slim's America Movil(AMXL.MX: Quote, Profile, Research, Stock Buzz)(AMX.N: Quote, Profile, Research, Stock Buzz).

America Movil, the largest cell phone operator in Latin America, provides service to seven out of every 10 mobile users in Mexico, well ahead of the No. 2 operator, Movistar, the brand of Spain's Telefonica (TEF.MC: Quote, Profile, Research, Stock Buzz).

It is the eighth probe against Slim's companies in the last five months. Six are looking into dominance issues involving Telefonos de Mexico, or Telmex, the largest fixed-line phone company in Mexico.

The seventh is an investigation into the interconnection fees of America Movil.

America Movil was not immediately available for comment, but in the past it has defended its market share by saying it invests more and provides better service across the entire country and not just in profitable cities.

Telmex (TELMEXL.MX: Quote, Profile, Research, Stock Buzz) (TMX.N: Quote, Profile, Research, Stock Buzz) was declared "dominant" several years ago in a similar probe by antitrust regulators, but Slim got that ruling overturned in Mexican courts.

Mexico's Communications and Transport Ministry can set rates for calls between dominant companies and their smaller rivals.