Mexico modifies calendar for Telmex wholesale split

Regulator IFT modified two dates regarding a mandated split of América Móvil's Mexican fixed line wholesale units, which the company's union opposes. The dates are related to the transfer of assets and personnel to the new companies.

The telecoms regulator said in a statement that the new date for presenting plans for migrating assets, resources and network infrastructure to the two companies to be created under the mandate is September 30, while jobs transfers to the companies should be completed no later than January 31, 2020.

Telmex was ordered to split its wholesale fixed-line business a year ago to improve competition in the telecommunications market, where América Móvil still operates over 50% of both fixed and mobile lines.

Although the new companies will remain part of América Móvil's group, they will have to offer wholesale services such as interconnection and transport services at equal, non-discriminatory rates to all market participants.

Telmex's STRM workers union has criticized the measure, saying it will endanger the jobs and benefits of over 16,000 active and 12,000 retired company workers. The union has requested the government to reverse the decision.

The calendar modifications, the IFT said, "do not alter the deadline of two years originally granted to (América Móvil) to make the functional split happen."

Telmex has protested the measure, which some analysts see as excessive, but is complying with the regulator's mandate.