Mexico Telecom Costs Declined after Reconstruction Focused on Curbing Slim
Published By : 09 Mar 2015 | Published By : QYRESEARCH
Cell phone service costs in Mexico have declined for almost 17% in 2 years, the telecoms regulator of Mexico stated on Sunday, Mar. 08, 2015, after a reconstruction focused on controlling the power of the billionaire Mr. Carlos Slim in the industry slashed call rates.
In the previous year, America Movil of Mr. Slim, which controls 70% of mobile market in Mexico, was barred from charging the national roaming fees and a recent law stated that it could not charge the rivals for the interconnection to its network. The measures are part of an industry renovation led by the President, Mr. Enrique Pena Nieto in January, who stated that it was already carrying in the advantages to the Mexicans.
Cell phone service prices fell around 16.7% during the period of February 2013 to January 2015, the regulator of the Federal Telecommunications Institute (IFT) stated. However, the main evaluation of the reconstruction will be if it generates real competition in the industry and enhances service quality as well as costs. Private industry investment in communications declined to 30% in 2013, according to the government figures. The government is yet to release the numbers for 2014.
Earlier in 2015, the U.S. service provider AT&T finished its procurement of 3rd ranked mobile industry participant in Mexico, Iusacell and stated that it would purchase Nextel, which is ranked 4th. It has not announced any details of the plans for the investment in the Mexican industry.