Telecom operator America Movil decided to sell assets to cut its Mexico mobile market share below 50 percent to avoid new regulations.

America Movil is facing the music from Mexico government due to its dominance in the market.

To avoid regulatory issues, billionaire Carlos Slim’s America Movil said its board of directors decided to sell certain assets to a new company independent of America Movil.

The decision is subject to regulatory approval.

In addition, all cellular cites, including towers and related passive infrastructure, will be separated from Telcel for their corresponding operation and commercialization to all interested parties.

The board noted the company’s contribution in Mexico. America Movil says prices for mobile services, national long-distance, and Internet services per kilobit, have decreased in more than 90 percent since the privatization of Telmex, and are currently among the lowest in Latin America and OECD member countries.

Telmex ratifies and strengthens the commercial agreement with Dish Mexico, consisting of billing and collection services, distribution and equipment leases. The services provided to Dish México have been – and will continue to be – available to telecommunications carriers, including those providing cable and/or satellite television services.

Telmex will waive its rights arising from the option agreement related to the purchase of 51 percent of the shares representing the capital stock of Dish Mexico.

Slim’s companies are being forced to slash costs they charge other companies to complete calls on their network and share infrastructure after a new market regulator declared it dominant in the fixed-line and mobile phone markets, Reuters reported.

Any divestitures would be conditional on America Movil’s mobile and fixed-line units no longer being declared dominant players, the company said. It is expecting that the company will be allowed to offer all telecommunications services, which include pay TV.

Slim’s companies are barred from offering TV services since they are so dominant in other markets.

America Movil’s announcement came as Mexico’s lower house of Congress voted on legislation needed to flesh out the powers of the new market regulator.