America Movil Approves Tower Spin-Off Plan
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America Movil has secured approval for a plan to
spin off its Mexican towers into a separate company, which will see the
creation of the region's second largest tower operator.
America Movil put the proposal to shareholders, who approved the plans to
create the new company, Telesites, with around 11,000 towers across Mexico.
It will compete for tower rentals with the market's largest player, American
Tower Corp.
The plan was approved "with a favorable vote of 98.2 percent of AMX's
total ordinary shares outstanding," the company said in a statement.
America Movil, controlled by billionaire Carlos Slim is facing regulatory
pressure to reduce its market dominance in its home market, and is looking at
the towers spin-off as an option that would rivals to rent capacity and expand
their coverage quicker than otherwise possible.
Under an agreement with the regulator, rental prices to rivals can be
arbitrated if the mobile networks are unable to agree a market price for network
access.
America Movil is looking to reduce its market share to below 50% so that it
can be removed from punitive oversight from the regulator, which has ruled that
the company is currently dominant within the market.
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