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AT&T Mexico says govt should limit America Movil’s market concentration


© Reuters. FILEPHOTO: America Movil’s logo is displayed on a wall in a reception area at the corporate offices of the company in Mexico City. This was taken in January 25th, 2022. REUTERS/Gustavo Graf/File photo

MEXICO CITY (Reuters) – AT&T (NYSE:)’s top executive in Mexico has urged the government to place limits on its telecom rival America Movil (NYSE:), and to prevent it from entering new markets, Mexican newspaper Reforma said Friday.

The warning by Monica Aspe, chief executive of AT&T Mexico, comes days after Mexican regulators withheld a pay TV permit from America Movil amid complaints from rivals the move would further enhance its dominance.

Aspe said Mexican regulators needed to maintain an even playing field to keep companies such as AT&T in the country.

We want to see the country grow over the next few years. However, like the future of any global company, the presence in a particular market is periodically analysed,” Aspe said in a statement, which an AT&T spokesperson sent to Reuters in full.

America Movil controls 70% of Mexican mobile internet services. More than 62% of Mexican mobile services are controlled by America Movil, data from Mexico’s regulator, Federal Telecommunications Institute.

America Movil, owned by Carlos Slim, is prohibited from accessing the Mexican TV market since 1990s.

“We don’t ask for special privileges. We request that America Movil be required to follow all regulatory and legal requirements. Aspe stated, “If that occurs, we will continue to compete here.”

The United States also raised competition concerns with Mexico about America Movil before the regulators convened to decide on whether to allow the firm into the pay-TV market.

The entry of America Movil into the market for pay TV could cause a negative cross-effect in the mobile market. Aspe indicated that it is concerning for the consumer.

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