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Carlos Slim
Country of residence : Mexico
Birthday : 01/28/1940
Linked companies : GRUPO CARSO

Mexican Billionaire Carlos Slims Blasts OECD Report

01/31/2012 | 05:58pm US/Eastern

Mexican telecom magnate Carlos Slim lambasted the Organization for Economic Cooperation and Development on Tuesday for saying that a lack of competition in the telecommunication industry costs the Mexican economy $25 billion a year.

"We don't know where they got that figure," Slim said, calling it a "fantasy." The billionaire also questioned the model that the OECD used to reach the estimate.

The OECD singled out Carlos Slim's operators in a report late Monday, noting that America Movil SAB (AMX) claims about 70% of the Mexican wireless market while its fixed-line unit, Telmex, has about 80% of land lines. The OECD said that the average market share of the mobile incumbent in OECD countries is roughly 40%.

The OECD argued that a lack of competition in Mexico's telecommunications market has led to "extremely high prices" for consumers and businesses, and slowed the take-up of new services. The OECD estimates the cost of muted competition to the Mexican economy to be around $25 billion each year, equivalent to nearly 2% of Mexico's gross domestic product.

Slim took issue with the assertion that Mexicans pay a high price for phone service, citing a December Bank of America Merrill Lynch report that shows Mexico's revenue per minute from mobile users almost on par with that of the U.S, at $0.04 versus $0.03.

Over the years, Slim said, America Movil's Mexican mobile brand, Telcel, has been reducing prices to consumers while increasing minutes-of-use. Fixed-line operator Telmex hasn't raised rates in years.

-By Amy Guthrie, Dow Jones Newswires; amy.guthrie@dowjones.com

Latest news about Carlos Slim 
Carlos Slim's Claro committed to expansion in Brazil
3 days ago - Sao Paulo, Oct 28 .- The chief of the Brazilian unit of Mexican telecommunications magnate Carlos Slim's America Movil said Tuesday that the re-e
Fundación Carlos Slim lanza portal de internet gratuito para la comunidad Latina en los Estados Unidos de América/Carlos Slim Foundation Launches Free Online Site for U.S. Latino Community
08/25 - Acceso Latino ofrece educación, capacitación para el empleo e información sobre salud y cultura, en el idioma español Fundación Carlos Slim presenta Acceso Latino, un portal gratuito creado para la comunida...
Slim
07/11 - NEW YORK/MEXICO CITY (Reuters) - America Movil, Latin America's biggest telecoms company, will move quickly to put an "attractive" cross-section of the company up for sale it sheds assets to escape tougher regulation of the phone and broadcas...
Reforms force Carlos Slim to split up empire
07/10 - AMERICA Movil, the huge Mexican telecommunications firm founded by billionaire Carlos Slim, is to break up its empire. The firm announced asset sales yesterday following regulatory reforms that could spell
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