Mexican regulator fines America Movil $63m for failing to disclose network availability

Published: 28 January 2020 - 6:56 a.m.

Latin American mobile network operator, America Movil, has been fined $69.5 million (1.3 billion pesos) by Mexico’s telecoms regulator.

Mexico’s Federal Telecommunications Institute (IFT) said that it had levied the fine as punishment for America Movil failing to disclose information about the availability of its networks.

America Movil strenuously denied the charges.

“This arbitrary, illegal and disproportionate fine affects the legal certainty in a sector that requires important investments,” the company said in a statement seen by Reuters.

Under anti-monopoly regulation in Mexico, America Movil is required to make its network infrastructure available to its competitors, to promote competition. However, rival mobile network operators have stated that they do not always receive the access they require.

The fine was issued against one of America Movil’s subsidiaries, Telefonos del Noroeste, and represents 6 per cent of the subsidiaries annual revenues.

America Movil has over 75 million mobile subscribers in Mexico and is the country’s biggest mobile network operator. Its nearest competitor, Telefonica’s Movistar, has 25.8 million subscribers, while AT&T Mexico has 12.5 million.

Last year, Telefonica and AT&T signed reciprocal network sharing agreements, to help them compete more effectively with America Movil and expedite the rollout of their next generation networks.

Globally, America Movil has more than 275 million subscribers, spread across 25 countries. Mexico remains its biggest market.

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