By Cassandra Garrison

MEXICO CITY (Reuters – Mexico has expressed concern about competition if the country’s telecom regulator approves behemoths. America Movil People familiar with the subject told Reuters that NYSE was looking to enter the market for pay-TV.

Jayme White, Deputy U.S. trade representative (USTR), and Jayme White (Mexico’s Economy Ministry) told Mexico’s Federal Telecommunications Institutes (IFT) on Jan. 12 that they were concerned about America Movil’s Claro TV entering their sector. A source familiar with the conversation stated this.

An internal document seen to Reuters shows that Mexico’s IFT may decide Wednesday whether America Movil will be granted the concession to pay television.

America Movil is controlled by Carlos Slim and his family. This makes it the dominant telecommunications company in Mexico. The rise of America Movil on Mexico’s Pay TV market could be a major threat to rivals including U.S.-based companies.

America Movil and AT&T in Mexico declined to comment. Mexico’s Economy Ministry and the IFT also declined to comment.

An American government readingout of a conversation indicated White spoke to Mexico about competition in the telecommunications industry on January 12.

IFT officials stated late last year that they are looking into whether America Movil can enter Mexico’s TV market. However, no decision has been made.

If approved, America Movil’s entry would have major implications for competitors, including U.S. company AT&T Inc (NYSE:), which operates in Mexico, and dominant broadcaster Grupo Televisa.

According to IFT data, America Movil has already captured a 70% share of the Mexican market for mobile internet services and 62% of all mobile phone services.

Ernesto Piedras is the head of Latin American market consulting The CIU. He said that a company’s opening to pay television could encourage other companies not to invest, in particular if they offer bundles for mobile, internet and TV.

Sources with knowledge said that the competition concerns were addressed during a bilateral meeting. This was to discuss issues related to the United States-Mexico Canada Agreement trade pact.

Source said that there was concern about America Movil’s dominant position in certain markets. “It is an understandable concern and it is important to address it due to the potential effect on competition it might have,” the source explained.

“In the case of the USTR … the concerns could come from U.S. companies in Mexico, like AT&T.”

Asked whether there were concerns over America Movil, USTR spokesman Adam Hodge said: “USTR officials have raised concerns about fair competition in Mexico’s telecommunications sector and are monitoring Mexico’s implementation of their USMCA commitments.”

America Movil, the Mexican state-owned telecom provider Telmex was privatized in the 1990s. This led to America Movil being barred from the provision of this service.

America Movil was deemed a dominant or preponderant agent by IFT because of its high market share. The license has been withheld.

It is the most prominent Latin American pay-TV provider, with operations in Brazil, Colombia and Colombia. The company has also been pushing for entry into Mexico.