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 Tuesday, June 28, 2011

Mexican regulator Comision Federal de Telecomunicaciones (Cofetel) has reduced the interconnection rate charged by Telmex to rival operators to MXN 3.951 from MXN 11.55. Cofetel has also changed the legal nature of long distance service that Telmex provides to other competitors in rural areas with no investment from other fixed telephony competitors.

Cofetel has also cut the interconnection rate for this service by 94 percent to 4.53 peso cents per minute, from 75 peso cents. America Movil believes that such decisions are "arbitrary", "clearly unexplainable and deprive [its subsidiary Telmex] of its corresponding rights and assets. Telmex plans to carry out all the relevant legal defense actions. Additionally, related to the fixed-mobile interconnection rates that have been reduced, Telmex will apply the interconnection rates as established by Cofetel, until the legal proceedings of mobile service companies are not definitely resolved.

Source: TelecomPaper