Cofeco withdraws Telcel fine in return for competition commitments

Mexico’s Comision Federal de Competencia (Cofeco) has reportedly reversed its decision on the record USD1 billion fine it had levied against the country’s largest cellco by subscribers, Telcel. As previously reported by CommsUpdate, the mobile operator, a subsidiary of Latin American telecoms giant America Movil (AM), was handed the financial penalty in April 2011 after the watchdog found that it had engaged in ‘relative monopolistic practices’ by overcharging its competitors to connect calls to Telcel subscribers; Cofeco at that date claimed that Telcel charged its rivals higher interconnection rates than those applied to connecting calls between its own clients. In the latest development the Wall Street Journal reports that, in exchange for the fine being withdrawn, Telcel has agreed to a number of commitments aimed at ensuring that it does hinder competition in the wireless sector in the future.

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OVETEL Cofeco withdraws Telcel fine in return for competition commitments