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Friday, Sep 27
Report: Branson to challenge Slim in Mexico
- Richard Branson's Virgin Mobile, which has already expanded into Chile and Colombia through MVNO deals struck by a Latin American subsidiary, is now planning to launch a Mexican MVNO, and thereby take on Carlos Slim's America Movil (AMX -1.2%).
- Virgin had previously chosen Brazil to be the next Latin American market it would enter, but has shifted its attention to Mexico following this year's passage of a telecom reform bill that creates an independent regulator and limits the market share of individual carriers to 50%.
- The latter provision raises the possibility America Movil, which claims over 2/3 of all Mexican mobile subs via its Telcel unit, will have to conduct asset sales.
- NII Holdings (NIHD -0.8%) also offers mobile services in Mexico.