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Portrait de Carlos Slim
Carlos Slim
Birthday : 01/28/1940
Place of birth : Mexico - Mexico
Country of residence : Mexico
Public asset : 4,828,625,506 USD
Linked companies : Philip Morris International Inc. - Minera Frisco, S.A.B. de C.V. - Grupo Sanborns SAB de CV - Inmuebles Carso SAB de CV

Mexican Billionaire Carlos Slims Blasts OECD Report

01/31/2012 | 04:58pm 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

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Carlos Slim : Connections 
Equipos Mecanicos SA
Grupo Telvista SA de CV
Grupo Hotelero Brisas SA
Hoteles Las Brisas SA de CV
Sears Operadora Mexico SA de CV
Ferrosur SA de CV
Mercado Masivo Teléfonos de México, S.A. de C.V
Inmobiliaria del Cabo


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