Monday, October 05, 2015

Fusion Axtel-Alestra: When law came, market already went and came

Two years after the new Telecommunications Act has been enacted in Mexico, the market showed that competition does not prevent concentration and vice versa. The recent announcement of the merger between Axtel and Alestra is another example in this regard, and are...

The results of the implementation of the reform to the Telecommunications Act reveal more an effort to remove some of the power from Carlos Slim holding rather than generating a more competitive environment with favorable conditions for the deployment of new infrastructure and the emergence of new companies. In two years, Satmex was bought by Eutelsat; Televisa acquired Cablecom and Telecable; AT&T landed in Mexico through the purchase of Iusacell and Nextel; and recently Axtel merged with Alestra.

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