Mexico Agency Said to Find America Movil, Televisa Dominant

Mexico’s telecommunications regulator has identified America Movil and Grupo Televisa as dominant companies in a preliminary finding, singling them out for closer scrutiny, a person with direct knowledge of the matter said. The two telecommunications giants are the only companies that have received notifications of a dominance finding, said the person, who asked not to be identified because the information is confidential.

Under a law passed earlier this year, the companies will have an opportunity to challenge the finding, which must be made final by March 9. The decision is the first legal step the Federal Telecommunications Institute must take to develop tighter regulations to make the market more competitive. America Movil, controlled by billionaire Carlos Slim, has about 70 percent of Mexico’s mobile-phone customers and about 80 percent of its landlines. Televisa gets about 70 percent of Mexico’s broadcast-television audience. This year’s telecommunications law allows the agency, known as IFT, to regulate prices, force network-sharing or even require a breakup of companies that are declared “preponderant” in their industries. Televisa has received documents from the IFT and is analyzing them so it can respond and participate in the process of identifying preponderant companies in telecommunications and broadcasting, a company official said. A press official with Mexico City-based America Movil declined to comment.