Mexico Looking to Break America Movil Monopoly in Telecom Sector
Published By : 15 Oct 2014 |Published By : QYRESEARCH
Hoping to end the monopoly of America Movil, Mexico has decided to launch its very own mobile network. The Mexico federal government plans to set up and launch the new telecom network by 2018 at least. Currently Carlos Slim’s America Movil dominates the telecom scene in Mexico and the government hopes to encourage more operators to join the market in order to equalize the playing field.
The news of Mexico’s plans has gone viral, with many vendors already showing interest in the project. Telecommunication gear manufacturers and vendors from Europe such as Alcatel Lucent and Ericsson have reportedly begun chalking out negotiations and bids for the new telecom plans in Mexico.
Mexico’s federal government has numerous agendas behind introducing domestic and local players into the telecom sector. The main aim of the new telecommunication network is to bring down prices. Monopolizing the market, America Movil has had the upper hand in devising price strategies and charging whatever they deemed appropriate. By launching its own networks, Mexico hopes to reduce America Movil’s industry share to 50%. Another reason is that Mexico hopes to create and develop a digital economy in Mexico and as a result of that, generate more number of jobs in the ICT sector.
The word has spread far and wide and there are rumors that U.S.-based multinational telecommunications corporation AT & T has already planned to expand its reach to Mexico and buy out a small portion of Carlos Slim’s telecom assets. AT & T has already created a mark for itself in Latin America by expanding to Argentina and Brazil.