The United States has raised concerns to Mexico about the implications for competition if that country's telecom regulator allows América Móvil to enter the pay TV market, people familiar with the matter told Reuters. In detail, on January 12, US officials told Mexico's Economy Ministry and the Federal Telecommunications Institute that they were worried about América Móvil’s Claro TV entering the sector, a source with knowledge of the conversation said.
Mexico's Federal Telecommunications Institute is expected to decide whether to grant América Móvil the concession for pay television on Wednesday, according to an internal document seen by Reuters.
Controlled by the family of billionaire Carlos Slim, América Móvil dominates the telecommunications market in Mexico, and its emergence on the pay TV scene could put rivals, including some companies from the United States operating in Mexico, under significant pressure. América Móvil already has a 70% market share for mobile internet services in Mexico and more than 62% of mobile phone services, according to data from the Federal Telecommunications Institute.