America Movil biz unit fined $3.7 mn for trying to displace rival Axtel

Mexico telecom regulator has fined Telmex, the fixed line business of America Movil, $3.67 million or 49.3 million pesos for monopolistic behavior to try to displace competitor Axtel.

The Federal Telecommunications Institute (IFT), the telecom regulator created under a new law last year, said that Telmex ignored several requests from Axtel to interconnect with its network and did not provide information about its infrastructure when asked.

Reuters reported that Telmex also played recorded messages on long-distance calls made by Axtel customers using Telmex’s network saying that their service could be cut off, a strategy designed to reduce demand for Axtel services.

Recently, Reuters reported that Telefonica, the Spanish telecom major, which has a strong presence in Mexico, is considering a business agreement with Grupo Televisa, a leader in the broadcast TV industry in Mexico.