11 March 2013

MEXICO : 12 Mar UPDATE: Congress Finally Moves To Break-up Phone, TV Monopolies; Slim's Stock Nears 2009 Low.


     Mexico's ruling party has introduced a bill to break-up companies that control more than 50% of phone or TV services.  
      It aims to improve competition in the $30 billion annual communications sector...and lower consumer prices.
     The bill also creates a new...and possibly...better regulator.
     Mexico has long been dominated by monopolies...that prefer to delay and weaken enforcement...with court challenges.
     The question is...will the bill pass...be fully implemented and effective?
     President Pena Nieto must also sell it to a Congress where his PRI party lacks a majority.
     The world's richest man worth $73 billion...Carlos Slim Helu...runs America Movil... which thru Telmex controls 80% of Mexico's land lines...and 70% of the cellphone business as well.
    The WSJ reports that Slim's family owns 40% of America Movil.
    America Movil's stock recently touched its lowest price since 2009...because of the proposed bill...and weak results from its Europe telecoms.
    But...seasoned bargain-hunter Slim has been buying-up America Movil stock during its decline.