Mexico. The Plenary of the Federal Institute of Telecommunications, IFT, resolved to authorize two concentrations, subject to the fulfillment of conditions, which will imply the definitive structural separation of Grupo Salinas and Grupo Televisa in the provision of telecommunications services, and the incursion of AT&T as a competitor in the provision of mobile telecommunications services in Mexico, respectively.
On December 12 of this year, the Plenary approved that Grupo Salinas, holder of 50% of the shares of GSF Telecom Holdings (GSF), buy from Grupo Televisa the remaining 50% of the shares of this company that, through its subsidiaries, participates in the provision of fixed and mobile telecommunications services. Such approval is subject to compliance with conditions imposed by the Institute.
With this transaction, Grupo Televisa will no longer participate in decision-making on the fixed and mobile telecommunications businesses that Grupo Salinas operates through GSF and its subsidiaries.
On the other hand, on December 15, 2014, the Plenary authorized, subject to conditions, the purchase by AT&T of the mobile telecommunications business of Grupo Salinas, which is made up of the assets and subsidiaries that participate in the provision of mobile telephony, messaging and internet access services, among which are Iusacell and Unefon.
The concentrations, which will be carried out consecutively, are subject to compliance with commitments and verification mechanisms to avoid that as a result of the concentration the process of competition and free competition is reduced, damaged or impeded.
In the event that companies do not accept the conditions imposed by this authority, or accept them but fail to comply with them, they will be considered unauthorized for all legal purposes.
Once Grupo Salinas owns 100% of GSF's shares, it will divide this company into two businesses:
• Fixed telecommunications, including Total Play; and
• Mobile telecommunications, which includes Iusacell and Unefon
Grupo Salinas will retain control over the fixed business and sell the wireless business to AT&T. In this way, AT&T will venture into the Mexican markets as a provider of mobile telecommunications services.
