(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
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)