IFT fines América Móvil $70m

IFT fines América Móvil $70m

28 January 2020 | Natalie Bannerman

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Mexico’s América Móvil confirms that its subsidiary Telnor has been fined 1.3 billion pesos ($69.53 million) by Mexico’s Federal Telecommunications Institute (IFT).

In a filing, the company said that the fines were due to its failure to supply information about its infrastructure such as its posts or ducts used for wholesale services.

In response, América Móvil says that due to “lack of a due process” and its disagreement with the way the proceeding were carried out, it will “exercise all legal remedies to challenge it”. It went on to describe the fine as “arbitrary, illegal and disproportionate” and argued that it would impact the company’s ability to make further telecoms investments in an industry already struggling with market uncertainty.

In related news, at the end of 2019 América Móvil completed its $948.5 million acquisition of Nextel Brazil. Purchased from NII Holdings, The deal saw AI Brazil sell all of its interests in Nextel Holdings to NII Brazil Holdings (NIIBH), and NIIH sold all of the issued and outstanding shares of NIIBH to América Móvil, resulting in América Móvil acquiring direct ownership of NIIBH and indirect ownership of all of the issued and outstanding shares of Nextel Brazil.

Additionally, in June América Móvil entered into a partnership with Telxius to build a new high-capacity subsea cable in the Pacific coast of Latin America. The cable will have an initial estimated capacity of 108Tbps offering the lowest latency between Guatemala and Chile. As a result, the 7,300km system will serve the entire Pacific coast of South America with the highest levels of service, reliability and security.