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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 | 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

Latest news about Carlos Slim 
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
Carlos Slim bows to Mexico telecoms reform
07/08 - MEXICO CITY (Reuters) - Billionaire Carlos Slim's America Movil AMXL.MX said on Tuesday it is ready to divest assets in an unprecedented step to cut its market share in Mexican telecoms below 50 percent and escape the burden of tougher regula...
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