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Latino Daily News

Friday February 4, 2011

U.S. Telecom Industry Condemns Mexico’s Inaction Toward Telmex Monopoly

As part of its yearly tasks, COMPTEL, the association representing the telecommunications industry in the U.S., collects information supplied by the Trade Representative (USTR) office, about the development and opportunities in the telecommunications industry worldwide, especially in Mexico.

Mexico is known to offer one of the most active markets for telecom operators and consumers in the U.S.; however, according to COMPTEL, it is also plagued by setbacks and barriers.

COMPTEL states that even after constant requests and complaints from competitors, the Mexican government has not taken precise measures to restrain both subsidiaries of America Movil: Telmex, currently supplying 80% of fixed telephony services, and Telcel, currently supplying 70% of mobile telephony in Mexico; these two companies earned their huge market share not necessarily because of the authentic consumer choice, but more by using business practices considered to be monopolistic.

Furthermore, COMPTEL highlights the following main anti-competitive activities that Telmex, have been perpetuating since 1991, the year that telephony was privatized in Mexico:
1. Blocking the majority of competitive traffic into the rural half of Mexico.

2. Illegally inserting lengthy recorded messages into calls carried into Mexico by certain competitive carriers, telling U.S. and Mexican customers that future calls may be not completed if they use that carrier.

3. Refusing to allow competitors to install local or long haul facilities that would provide competitive termination for U.S. carriers.

These practices and abuses are already well known by competitors and users, but continue to go unpunished for lack of authority and real regulation by the Mexican government.