Telmex forced to reduce rural wireline interconnection fees

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.

For more:
- TeleGeography has this article

Related articles:
Telmex charged with another $7.8M network interconnection fine
Telmex to fight government's rejection of its video service proposal
Telmex to bring Fiber to the Home to 40 cities in Mexico
Carlos Slim to increase Mexican wireless and wireline network spending in 2011

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