(Updates with comments from America Movil)
MEXICO CITY, March 27 Carlos Slim Domit, son of Mexican billionaire Carlos Slim and chairman of family-controlled America Movil, has criticized a reform bill seeking to increase competition in the sector dominated by the phone company, according to newspaper reports.
"We don't understand why a company has to give for free, without any revenue, services to its competitors," Carlos Slim Domit told a conference in Mexico City on Wednesday, according to local newspaper reports.
America Movil said in a statement on Thursday evening that some of the new rules were confiscatory and rewarded a chronic lack of investment by competitors to the detriment of consumers.
Aspects of the bill would also affect legal certainty, investment and innovation in the sector, the company said.
The bill includes provisions for so-called asymmetric regulation of America Movil, Latin America's biggest phone company, which was declared a dominant company by the new telecom regulator earlier this month.
Under the rules, America Movil will have to allow rival phone operators to connect to its networks for free.
America Movil has about 70 percent of Mexico's mobile lines and about 80 percent of the country's fixed lines through its subsidiary, Telmex.
The company is also looking closely at rules in the bill that would force it to wait two years before offering television services, Slim Domit said.
America Movil said on Thursday that this would prolong the lack of competition in Mexico's broadcasting and pay-TV markets.
Shares in America Movil closed 1.48 percent lower on Thursday at 12.7 pesos.
The bill provides the fine print detailing how a wide constitutional reform approved last year will shake up Mexico's broadcast, Internet and phone businesses. (Reporting By Alexandra Alper, Elinor Comlay and Christine Murray; Editing by Sophie Hares and Ryan Woo)