A Telecom Monopoly Cripples Mexico

[SOURCE: Wall Street Journal, AUTHOR: Mary Anastasia O'Grady]
[Commentary] A decade after supposed deregulation, Mexico's Telmex has 95% of the country's fixed-line market, resulting in relatively high telephony prices and a sub-optimal ratio of telephones to Mexican homes, particularly in rural areas. Telmex controls almost all data traffic and consumer choice in broadband, Internet and voice over Internet services is practically non-existent. It's still not clear whether the wireless market can develop competitively. National Action Party presidential candidate Felipe Calderon is promising that he will tackle the monopoly problem but some doubt whether he will be able to summon up the political muscle even if elected. Telmex has been masterful in protecting its turf. In crushing competition, the company has had help from the government of PAN President Vicente Fox and from the Institutional Revolutionary Party (PRI) President Ernesto Zedillo before him.
http://online.wsj.com/article/SB113954042025370380.html?mod=todays_us_op...
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