June 26, 2014 / 1:18 AM / 4 years ago

America Movil to consider structural changes after Mexican reform

MEXICO CITY (Reuters) - Carlos Slim’s America Movil said on Wednesday it had created a committee to evaluate options in response to an overhaul of Mexico’s telecommunications sector which aims to curb its dominance.

The committee will study “structural, commercial, technological and other options ... as well as the opportunities offered by the new Mexican regulatory framework,” the company said in a statement.

Eight members, including America Movil CEO Daniel Hajj, and Telmex CEO Hector Slim, will make up the committee, a spokeswoman for the telecoms giant said.

America Movil said the new committee will report findings and recommendations to the board and possibly to shareholders.

A spokeswoman for America Movil did not immediately specify who would be on the committee or when it would report.

The constitutional reform, which was approved last year, is aimed at curbing the power of America Movil, which controls around 80 percent of Mexico’s fixed-line business and about 70 percent of the mobile sector.

So-called secondary laws hashing out the fine print of the reform were due to be approved by December 2013, but political bickering and a heavy legislative agenda have delayed passage.

A newly created regulator, the Federal Communications Institute (IFT), in March declared America Movil as dominant and imposed tougher regulations against it.

A Mexican court is studying an injunction request filed by America Movil to fight the IFT’s ruling.

Earlier this year, a judge ordered Slim’s fixed-line business, Telmex, to halt a planned spin-off of assets, a practice some rivals and analysts said could have been a means of placing key network infrastructure beyond reach of regulators.

Telmex said at the time it was not undertaking action to avoid regulation.

Reporting by Christine Murray; Editing by Matthew Lewis and Eric Walsh

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