Telmex (NYSE: TMX) is once again facing regulatory ire of Cofetel, which is now asking the Mexican incumbent operator to reduce the feeds it charges competitors like Telefonica (NYSE: TEF) to connect wireline calls to its network in rural areas.
Under the newly proposed rates, Cofetel has mandated that Telmex reduce its interconnection rates by 60 percent from USD 0.80 to USD 0.32 cents per minute. In addition, Cofetel is requiring Telmex to reduce long-distance rates it charges to competitors to the same USD 0.32 per minute.
Cofetel said in a Reuters' article that the lower rates would "generate conditions needed for healthy competition in the sector."
Not surprisingly, Telmex argued that it would not only make new investments in rural areas if Cofetel altered its new rules with plans to challenge them in court.
- TeleGeography has this article
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