Carlos Slim’s America Movil will be forced to sell off assets to comply with new competition laws

MEXICAN telco billionaire Carlos Slim has seemingly just faced a crushing defeat which could see him lose significant control of his empire.

Carlos Slim will have to divest significant portions of his America Movil empire.

THE Mexican government has moved to break Carlos Silm’s monopoly on the country’s telecommunications industry.

Slim, who is the world’s second richest man with a personal fortune of $83.96 billion, owns America Movil, which currently has an 80 per cent share of the traditional telephone market, and holds 70 per cent of the mobile phone market.

President Enrique Pena Nieto enacted a law Monday that aims to open up Mexico’s telecommunications industry to competition. America Movil’s market share must drop below 50 per cent to meet the requirements of the new law. At a ceremony at the national palace, Pena Nieto said the new law “fosters competition, productivity and innovation.”

America Movil pre-empted the government’s plans by hours when it announced plans to shed its dominant share of the country’s telephone phone market.

To comply, Slim said he will break up his empire and sell assets to a “new operator”. The legislation will also now allow Slim to invest in the television industry, thus potentially opening a new revenue source for the company, as well as bundling it together with telephony services in a ‘triple play’ offer for consumers.

Televisa, the other major telecom affected by the law, has a 70 per cent share of the broadcast TV market and 60 per cent of the cable TV market in Mexico.

Originally published as Carlos Slim’s America Movil will be forced to sell off assets to comply with new competition laws