# Monopolies in Mexico



## Guategringo (Nov 9, 2012)

Just wondering what everyone feels about the new telecommunications reform the government is putting into place to break up the monopolies of American Movil, Televisa and others. Will it help the system to be more competitive and lower prices? 

Mexico moves to end telecom monopolies


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## ABCinATL (Jun 19, 2010)

I would be surprised if this happens, given Carlos Slim's influence over politics. Guess we can wait and see.


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## Longford (May 25, 2012)

Unsuccessful in its attempts, the federal government has tried this for about the last 15 years. More competition in the cellular and land line telephone services would be a good thing. But Slim/Telcel does own that infrastructure and, smartly, will demand just compensation for sharing it. He just may be too big to challenge, given his enormous wealth.


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## jlms (May 15, 2008)

In Mexico, if you don't cooperate, you end like La Quina o La Maestra.

The government is more careful with private citizens of note, but if there is a will not even Mr Slim could stand on the way of a government with a purpose (whatever their true intentions).


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## RPBHaas (Dec 21, 2011)

The new proposed law has made it pass the chamber of deputies (US House of Rep equivalent). It appears the government has tied telecommunication deregulation with the same concerning television. The theory is Slim will lose share with telephones but gain with television, a sector he has been trying to enter for many years.
I am happy this looks likely to pass. I am tired of poor service reception and pricing from Telcel. (I live in a small town with little alternative) And I just can't accept that calling my cell from the home phone costs money.


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## Guategringo (Nov 9, 2012)

RPBHaas said:


> The new proposed law has made it pass the chamber of deputies (US House of Rep equivalent). It appears the government has tied telecommunication deregulation with the same concerning television. The theory is Slim will lose share with telephones but gain with television, a sector he has been trying to enter for many years.
> I am happy this looks likely to pass. I am tired of poor service reception and pricing from Telcel. (I live in a small town with little alternative) And I just can't accept that calling my cell from the home phone costs money.


Mexican Senate approved the bill on Tuesday and now it has to win a majority in the state legislatures before President Peña Nieto can sign it into law. This would certainly help prices for consumers...


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## PanamaJack (Apr 1, 2013)

Guategringo said:


> Mexican Senate approved the bill on Tuesday and now it has to win a majority in the state legislatures before President Peña Nieto can sign it into law. This would certainly help prices for consumers...


I hope this becomes law and Mexico finally starts to dismantle some monopolies and makes Mr. Slim spread the wealth.


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## thinkering (Apr 24, 2013)

I was surprised the bill even appeared. Thought the richest man in the world, in Mexico, could prevent that from happening.

President is going after the teachers union and telecoms and no mention of war on drugs. Interesting.


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## mes1952 (Dec 11, 2012)

The poor service with almost every utility including TV is certainly not limited to small towns. Here is Baja the telephone reception is questionable once you live the Tijuana area. CableMas (the TV monopoly) has bought out MultiCable here in Rosarito and now there are limited programs unless you pay extra $$$. So the whole monopoly sector needs to be changed and hopefully this new legislation will commence that change.


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## pappabee (Jun 22, 2010)

Everyone look back to the US and see what happened when the government ordered Ma Bell to breakup. History does repeat itself.


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## michmex (Jul 15, 2012)

One needs to be careful for what they wish for! 

Back in the days not so long ago when Telmex was a government entity, rates were higher and service was horrible. When you purchased or rented a residence the first thing you asked was "Do you have a WORKING" telephone line?. Installation took 1 to 2 years at best. We needed to install a line when we relocated to our home in Edomex in 2008. The line was installed in 5 days. This was for a home that had never had a line installed. Service back in 1996 was obtained by cruising the streets looking for a Telmex truck and paying the worker 200 pesos to fix your problem. Today, a recent service request was fixed the next day on a DSL issue.

Rates? Today, I am paying 100 peso less per month for DSL+Phone than I did for just phone service and a dialup Internet connection back in 1996.

A properly regulated oligopoly can serve its customers well in many areas where the cost of entry into that industry is very high such as telephone. Competition does exist for Telmex with VOIP Internet phone service from cable companies and Axtel. Most areas have a choice of at least 2 wireless phone providers. When I compare costs of Telcel service to ATT and Verizon, the main difference is in the initial cost for the phone. ATT and Verizon heavily subsidize the initial purchase price of the phone. The monthly phone service are often more from the 2 big USA providers. The solution, but an unlocked cell phone in the USA.

Could the costs for service be lowered? Yes, the addition of MVNO's that resell unused cell phone capacity would provide some competition as they have in the USA. At issue, America Movil is becoming a dominant MVNO in the USA.

Allowing Telmex to provide television service ala Uverse in the USA would provide some much needed competition to the present cable operators. In our fraccionamiento, our choices for TV service are Sky and Dish satellite service. Telmex has an unused fiber optic cable running in front of house that is waiting for approval for Telmex to offer TV service. Would rates go down? Maybe not but channel offerings would go up. At issue, its Carlos Slim Helu again!


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## mickisue1 (Mar 10, 2012)

Mich, it wasn't that much better in the US back then, either.

When TLofML moved in with me and the kids in 1998, the local phone company told us that we'd have at least a month's wait for his phone to be hooked up. The number of lines in our neighborhood was maxed out, so we had to wait for someone to move or drop a line before he could port his phone and number. From, BTW, an apartment a whopping 2 miles from the house.

I was ecstatic, in 2004, when I found that I could get standalone long distance for much less than I had been paying the local company. My business requires a lot of long distance, and, instead of $150-200/month for my part time business, I was then paying "only" $50-75.

Now I have a Magic Jack+ for the landline, and paid $80 nearly a year and a half ago for the hardware and two years service. I buy long distance, for calling our daughter, at $10 per 500 minutes.

It's better in MX, AND it's better in the US. Now when they start to make real changes in the cost of data for smartphones, we'll all be happier!


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