Mexico’s Federal Telecommunications Institute (IFT) approved, with four votes in favor and three against, the functional separation plan of Telmex, according to information published on IFT’s website. América Móvil said it will challenge the resolution because it “substantially differs from the plan presented by Telmex and Telnor in compliance with IFT’s separation order of 2017”.
However, the company said in a statement that “its compliance is mandatory, and therefore Telmex and Telnor will start the separation process pursuant to the terms and conditions determined by the IFT”.
América Móvil also indicated that board of directors resolved not to subsidize or finance the operations of the New Entity. IFT’s resolution establishes that “within Telmex and Telnor a business unit shall be created to provide certain wholesale services to other concessionaires”.
The provision of unbundled services will be in charge of the New Entity, which will be a direct subsidiary of Telmex and will receive the necessary assets and employees. It “will be independent, including financially, from AMX and AMX’s subsidiaries and its cost structure shall be covered through the provision of services to current and new telecommunication services providers, under the prices and terms determined by the IFT”, the company explained. Telmex and Telnor will have 2 years to implement the separation ordered by the IFT.