Mexico's new telecoms law takes effect

Mexico's new telecommunications law took effect, capping President Enrique Pena Nieto's bid to end monopolies in an industry worth more than 32 billion dollars a year. The legislation aims to increase foreign investment, allowing non-Mexican companies to own 100 percent of the capital of a telephone firm -- compared to 49 percent today -- and 49 percent of radio and television broadcasters -- compared to zero now. Currently billionaire Carlos Slim's fixed-line phone company, Telmex, controls 80 percent of the industry while his cellphone service, Telcel, holds 70 percent of the mobile market. The legislation also aims to break the dominance of the country's two powerful television broadcasters, Televisa and TV Azteca. Televisa holds 70 percent of broadcast television and 60 percent of the cable market. "Everybody is a winner ... the people win because, aside from enjoying benefits of the digital era, they will have access to better quality and cheaper products and services," Pena Nieto said as he on Monday signed the bill into law, calling it a "bold step." Two new autonomous regulators will also be created under the reform. A telecoms regulator, Ifetel, will have the power to approve or revoke concessions while a federal competition commission will fight monopolies.