Puerto Rico Telephone & América Móvil To Pay $1.1 Million For Repeatedly Exceeding Foreign Ownership Limits

The Federal Communications Commission announced that Puerto Rico Telephone Company and its parent company, América Móvil of Mexico, will pay $1.1 million to resolve an investigation by the FCC’s Enforcement Bureau. Stock purchases of América Móvil by its owner Carlos Slim Helú and his family repeatedly exceeded the foreign ownership levels approved by the Commission.

Puerto Rico Telephone Company (PRTC), a telecommunications carrier operating in the United States territory of Puerto Rico, and América Móvil, S.A.B. de C.V. (América Móvil) of Mexico, have exceeded their approved foreign ownership three times in five years. Most recently, in June 2014, the Slim family increased its ownership in and control of América Móvil through a purchase of stock from AT&T International. This also increased the family’s ownership in FCC licensee PRTC beyond the voting and equity interests then approved by the agency’s International Bureau in accordance with the FCC’s foreign ownership rules and policies. As part of the settlement, PRTC and América Móvil have each agreed to adopt compliance plans to prevent future stock purchases by the Slim family that would exceed foreign ownership limits without first receiving the International Bureau’s review and approval.