America Movil (NYSE: AMX) may have to pony up $1 billion due to pay for overcharging competitors access to its network.
A four-year investigation by Mexico's Federal Competition Commission revealed that America Movil's Mexican wireless brand Telcel had "been abusing its dominant position" to keep competition at bay.
"America Movil and its subsidiary Telcel are analyzing the decision ... and plan to appeal," the company said in a statement.
Smaller mobile operators have argued America Movil charges excessive interconnection fees. In response, Carlos Slim, the owner of America Movil, argues that competitors should just invest more in their own networks.
Being the dominant carrier in Mexico, this is not the only time America Movil has faced overage issues.
In January, Mexican telecom regulator Cofetel ordered its wireline unit Telmex to reduce wireline voice calling rates for consumers in addition to striking a deal to cut wireline and wireless network interconnection rates it charges Telefonica's (NYSE: TEF) Mexico wireline/wireless unit Telefonica Moviles Mexico (Movistar).
- Reuters has this article
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