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MTV and all related titles and logos are trademarks of Viacom International Inc. Enter the characters you see below Sorry, we just need to make sure you’re not a robot. 4 5 1 4 1 2 1 . Carlos Slim, center, arriving for a meeting in Nicaragua last year. More than half of his cellphone company’s sales now come from outside Mexico.
MEXICO CITY — All is not well in the kingdom of Carlos Slim. For more than 25 years, he has dictated the terms of Mexico’s telecommunications industry and built an empire, making him one of the world’s richest men. Slim and his family are billionaires 50 times over. He has stood at the very top of the Forbes World’s Billionaires list — more than once. But at home in Mexico, the game is changing. And there is not much he can do about it, analysts say. Determined to bring his dominance to an end, leaders from Mexico’s three biggest political parties have put aside their own animosities in recent years, meeting in secret sessions to chip away at Mr.
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Now, the plan they concocted to increase competition in the telecommunications industry, signed into law two years ago, is starting to bite. Slim’s flagship company, América Móvil, are in steep decline, falling 24 percent in 2015 and almost 44 percent in the first six months of this year, compared with the year-earlier periods. A closely watched metric of profitability on Wall Street has also fallen, and the company’s stock has dropped by 39 percent in the past year. In its quarterly report last month, the company acknowledged that increased competition was crimping profits in Mexico.
Under the new law, it must submit to special rules as the dominant phone company. Ernesto Piedras, the director general of the Competitive Intelligence Unit, a consulting and research firm. This is the first time Slim does not have a copy of all the keys. Regulators in Mexico, sometimes against their government’s wishes, had tried for decades to rein in Mr. Slim’s dominance, finding themselves thwarted at every turn. 13 billion a year between 2005 and 2009, according to the Organization for Economic Cooperation and Development.
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But when the Institutional Revolutionary Party took back the presidency in 2012, it looked to reassert its power in a country where the state — not big businesses — has traditionally been king. Slim offered a way to score political points at the same time: Mexicans were already openly scornful of what they called his expensive and often unreliable service. Overhauling telecom was a crucial part of President Enrique Peña Nieto’s push to recast the image of Mexico and his party, which had governed the nation for seven decades before losing an election for the first time in 2000. He vowed a new Institutional Revolutionary Party, dedicated to recharging the economy. The headquarters of the telecom company Telmex, which Mr. Slim purchased from the Mexican government.
The celebration was short-lived, with corruption and security scandals sinking Mr. Peña Nieto’s approval ratings to the lowest of any president in a quarter-century. For Mexico, the telecom law offers a stark contrast to the state’s many failed promises — to end corruption, enact the rule of law and bridge inequality. That the government has managed to take on Mr. Slim, arguably the country’s most powerful citizen, is proof that where there is political will in Mexico, there is a way.
Enrique Krauze, a prominent Mexican historian who knows Mr. Still, the changes have done little to dent Mr. He retains nearly 70 percent of the cellphone market and about 65 percent of fixed lines. Slim said the new law established a certainty that all businessmen appreciate. But he bristled at the notion that his company required special regulation, or that it had stalled or impeded regulation in the past.
Look at all the regulation they have imposed on us. Every time they complain about something, they lobby to impose a regulation. Slim acknowledged that profits were down. Currency woes in Latin America have taken a heavy toll.
North America,’ and on the other, they say that because they are small here we should subsidize them. This year, Mexican regulators will determine if the new measures are enough to curb Mr. Regulators can crack down further if they decide América Móvil is not opening up to competition — by imposing large fines or even ordering its breakup. Slim appeared sanguine about his prospects.