* Bill to increase competition could take effect in 2014
* Asymmetric rates would be imposed on dominant players
* Spending on share buyback nearly tripled so far this year
MEXICO CITY, April 30 New legislation in Mexico
could materially affect the business of America Movil, Latin
America's largest telecommunications company, the company
controlled by billionaire Carlos Slim said in a U.S. regulatory
filing on Tuesday.
Mexico's Senate on Tuesday was expected to approve a bill
designed to increase competition in the country's phone and
television markets, dominated by America Movil
and Emilio Azcarraga Televisa.
The legislation would impose certain measures including
asymmetric rates on dominant players including America Movil,
which has around 70 percent of the mobile market and 80 percent
of the fixed-line market in Mexico.
Once the bill is approved by the Senate, it must be approved
by legislatures in the majority of Mexico's states. Mexico's
Congress will also need to draw up secondary legislation to
implement the new rules.
"We expect that the bill will become effective in
substantially its current form," said America Movil in the
filing. "If it is approved rapidly, we would expect specific
rules and regulations to begin taking effect in 2014."
America Movil shares have tumbled more than 14 percent since
the start of the year, hurt by the threat of increased
regulation as a result of the reform, as well as weak results.
On a call with analysts earlier this month, executives said
the company would not make any strategic changes until it knows
the details of the secondary laws to follow.
The company has been buying back shares to try and support
its share price.
America Movil has spent 22.8 billion pesos ($1.88
billion)buying back more than 1.8 billion shares in the year
through Monday, almost three times the 8.4 billion pesos it
spent buying back just under 550 million shares in the first
four months of 2012, the filing showed.