Economist Intelligence Unit
Telecommunications in Mexico In Mexico, telephone and television industries are almost monopolies. 80% of fixed lines are connected to Telmex, one of many companies controlled by Carlos Slim, the richest man in the world. Another of his companies, Telcel, has 70% of mobile market.
A billionaire's second division, Emilio Azcarraga, maintains a tight control of almost the same in the television business, which his company, Televisa, claims to have 70% of the television audience of the country. Most other viewers are picked up by TV Azteca, run by Ricardo Salinas Pliego, whose fortune is the fourth in the country.
For a long time, the Mexican billionaire club has been a welcoming place. But for some sporting rivalry between the two consortia television, there was little reason for partners to interfere in the captive markets of each other.
That was before the 9th of March, a group of 25 companies led by Televisa and TV Azteca filed a complaint with the competition authority on trade with the empire Slim phone. Made full-page newspaper denounced the "monopoly expensive and bad" of the industry. Slim
filed the same day your own lawsuit, which accused the TV czars of conspiring to block the TV business. Back in February withdrew $ 70 million advertising a year from Televisa, the same month also canceled its ads on TV Azteca.
What caused the breakdown of the three "friends" was the convergence of their fiefdoms. Technology has become the business of television and telephony in a single market, Televisa now sells phone and Internet package with their cable television services, and want to add mobile telephony. Salinas, who also controls a cellular telephone company, Iusacell, launched a similar package last year. Slim longs to use their telephone lines to distribute pay TV (which has become the leading supplier in the rest of Latin America), but the government allows it.
billionaires now advocate precisely the reforms that their industries have needed for a long time. TV moguls want Slim reduce the rate that applies when a company calls a rival company Telcel. The current rate is 43.5% interconnection higher than the average for OECD countries, mostly rich. The other companies say that makes them unable to offer competitive rates.
The Federal Competition Commission (CFC) argues that consumers would get a profit of 6 billion per year if rates were to match the OECD average, and should allow Slim to compete on television once you have loosened the control of the telephone business. According to the CFC, whether Telmex entered the market for pay television, increased competition would cause prices of the service made it available to other 3.8 million households.
The government has shelved the proposals for years, for fear of upsetting powerful interests at stake. As next year's election, remains shy, but now that companies are being required mutual concessions, it is possible to negotiate a settlement. According to an official of the CFC, is the best opportunity reform that has been presented in years. The danger is that billionaires think twice and realize that they do better in their comfortable competing monopolies.
Source:
Day
Telecommunications in Mexico In Mexico, telephone and television industries are almost monopolies. 80% of fixed lines are connected to Telmex, one of many companies controlled by Carlos Slim, the richest man in the world. Another of his companies, Telcel, has 70% of mobile market.
A billionaire's second division, Emilio Azcarraga, maintains a tight control of almost the same in the television business, which his company, Televisa, claims to have 70% of the television audience of the country. Most other viewers are picked up by TV Azteca, run by Ricardo Salinas Pliego, whose fortune is the fourth in the country.
For a long time, the Mexican billionaire club has been a welcoming place. But for some sporting rivalry between the two consortia television, there was little reason for partners to interfere in the captive markets of each other.
That was before the 9th of March, a group of 25 companies led by Televisa and TV Azteca filed a complaint with the competition authority on trade with the empire Slim phone. Made full-page newspaper denounced the "monopoly expensive and bad" of the industry. Slim
filed the same day your own lawsuit, which accused the TV czars of conspiring to block the TV business. Back in February withdrew $ 70 million advertising a year from Televisa, the same month also canceled its ads on TV Azteca.
What caused the breakdown of the three "friends" was the convergence of their fiefdoms. Technology has become the business of television and telephony in a single market, Televisa now sells phone and Internet package with their cable television services, and want to add mobile telephony. Salinas, who also controls a cellular telephone company, Iusacell, launched a similar package last year. Slim longs to use their telephone lines to distribute pay TV (which has become the leading supplier in the rest of Latin America), but the government allows it.
billionaires now advocate precisely the reforms that their industries have needed for a long time. TV moguls want Slim reduce the rate that applies when a company calls a rival company Telcel. The current rate is 43.5% interconnection higher than the average for OECD countries, mostly rich. The other companies say that makes them unable to offer competitive rates.
The Federal Competition Commission (CFC) argues that consumers would get a profit of 6 billion per year if rates were to match the OECD average, and should allow Slim to compete on television once you have loosened the control of the telephone business. According to the CFC, whether Telmex entered the market for pay television, increased competition would cause prices of the service made it available to other 3.8 million households.
The government has shelved the proposals for years, for fear of upsetting powerful interests at stake. As next year's election, remains shy, but now that companies are being required mutual concessions, it is possible to negotiate a settlement. According to an official of the CFC, is the best opportunity reform that has been presented in years. The danger is that billionaires think twice and realize that they do better in their comfortable competing monopolies.
Source:
Day
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