After Legal Setback, Rival Telecom Firms Want Rules Put On Telmex
Dow Jones Online News, Friday, June 18, 1999 at 16:38
MEXICO CITY -(Dow Jones)- Telefonos de Mexico SA's rivals Friday
demanded regulations on the former state monopoly despite an injunction
against an antitrust ruling that it was a dominant carrier.
The rivals, including carriers backed by AT&T Corp. (T) and MCI
WorldCom Inc. (WCOM), said First District Administrative Judge Jesus
Rosales Suarez's injunction allows for additional regulations if deemed
in the public interest.
"We believe it is indispensable that the Federal Telecommunications
Commission impose additional regulations as soon as possible, with the
objective of protecting the public interest and promoting healthy
competition," the rivals said in a press release late Thursday.
It was signed by AT&T-backed Alestra SA, MCI WorldCom-backed Avantel
SA, Pegaso PCS and two smaller carriers. Pegaso is a mobile carrier
backed by Leap Wireless International Inc. (LWIN) and Mexican media
giant Grupo Televisa SA (TV).
The joint statement was part of what is shaping up to be a public
relations offensive to pressure Cofetel, as the regulatory agency is
known, to impose additional regulations on Telmex. Both Cofetel and
Telmex have declined comment on the injunction, issued Monday, that
overturned a March 1998 antitrust ruling that Telmex had monopoly
powers.
Cofetel was putting the final touches on the additional regulations
last month, just before its president resigned to take another
government position.
A draft copy of the additional regulations establishes tariff floors
on Telmex's local and long-distance rates and a ceiling on local rates.
The rules would also require Telmex to share more information with
rivals who pay for use of its vast network. The services it provides to
competitors would have to satisfy minimum standards and, in many cases,
fees would have to be based on costs.
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