Carlos Slim Needs More Competition

[Commentary] Last month brought mixed news for Carlos Slim, the world's richest man. Mexico's Federal Competition Commission disapproved an investment by Televisa, the country's largest television broadcaster, in Iusacell, a cellular phone company. That was good news for Slim because it hampered a rival to his telecommunications empire. The bad news: The nation's Federal Communications Commission failed to reach an agreement to clear the way for a third and fourth broadcast television network. Slim badly wants to get into the television business.

Both decisions lock in the status quo, are bad for consumers, bad for Mexico, and bad for Televisa, the company I chair, manage and in which I am the largest shareholder. Mexico's antitrust agency, Cofeco, blocked our transaction with Iusacell on concerns that two broadcasters joining in a common venture in the telecommunications industry could collude in the mass media market. This has never happened and is not Televisa's intention. We are prepared to establish firewalls in order to address the agency's concerns. The antitrust agency should understand that not only is it good business for us to enter the telecommunications market, it is also good news for Mexico. That's because Mexico's telecommunications market sorely lacks competition. Companies owned by Carlos Slim control 70% of Mexico's mobile phone market, 74% of fixed broadband service, and 80% of the country's landline market. Mexico is changing for the better. Televisa is too. So should someone with the vision, the talent and the clout of Carlos Slim.