Two Mexico telecoms may be fined for poor service

MEXICO CITY, Dec 22 (BestGrowthStock) – A company controlled by
billionaire Carlos Slim as well as an affiliate of broadcaster
Televisa (TV.N: ) (TLVACPO.MX: ) could be lightly fined for
providing poor service, a Mexican regulator said on Wednesday.

In a report, telecommunications watchdog Cofetel also said
it will ask lawmakers to change the law to boost such
sanctions.

Cofetel said it found that more than half of all the calls
handled by Telcel, the commercial brand under which Slim’s
America Movil (AMX.N: ) (AMXL.MX: ) operates in Mexico, failed to
connect.

Telcel’s cell phone network, which is by far the largest in
Mexico, “suffered a glitch that hurt customer service” in
November and did not report it promptly, Cofetel said.

The regulator also said Televisa’s cable affiliate
Cablevision (CABLECPO.MX: ) did not get permission to carry out a
network overhaul that left thousands of customers with no cable
television or Internet services across Mexico City between
October and November.

Cofetel will hand the communications ministry a report on
the problems. The ministry will ultimately decide whether to
apply fines that could range between $93,000 and $187,000.

America Movil had $1.85 billion in third-quarter earnings
and Televisa posted a profit of $174 million in the same
period.

The companies did not immediately respond to requests for
comment.

Service from several key telecom providers in Mexico is
notoriously prone to glitches.

In the case of pay television services, light rain or wind
can leave many residential zones with no programming for hours
or freeze Internet services. A mild earthquake earlier this
year left many Cablevision clients in the capital with no web
access for nearly a week.

Cofetel said it will ask “Congress to analyze the
possibility of reforming the telecommunications law to
strengthen the equilibrium between service deserved by
customers and sanctions that can be imposed in case such
service is not provided.”
($1 = 12.3 pesos)
(Reporting by Cyntia Barrera Diaz, editing by Gerald E.
McCormick)

Two Mexico telecoms may be fined for poor service