(Adds background, details on proposed asset sales)
MEXICO CITY, July 8 Billionaire Carlos Slim's
America Movil said on Tuesday its board voted to sell
off assets to cut its Mexico telecommunications market share
below 50 percent in order to avoid tough new regulations
designed to curb its long-held dominance of the sector.
America Movil, which runs mobile, Internet and fixed-line
businesses, said in a statement that its board of directors had
decided to sell certain assets to a new company independent of
America Movil. It did not specify the assets.
Slim's companies are being forced to slash costs they charge
other companies to complete calls on their network and share
infrastructure after a new market regulator declared it dominant
in the fixed-line and mobile phone markets.
President Enrique Pena Nieto pushed a telecommunications
reform through Congress last year that was designed to rein in
Slim's companies as well as top broadcaster Televisa
Any divestitures would be "conditional" on America Movil's
mobile and fixed-line units no longer being declared dominant
players, the company said. It also said it expected to be
allowed to offer all telecommunications services, which include
Slim's companies are barred from offering TV services since
they are so dominant in other markets.
Separately, the company said it would sell cellphone towers
and other infrastructure.
America Movil's announcement came as Mexico's lower house of
Congress voted on legislation needed to flesh out the powers of
the new market regulator.
(Reporting by Dave Graham and Michael O'Boyle; Editing by