To comply with competition rules that impose dominant carrier regulation on any company that holds a 50% or greater share of the Mexican telecommunications market, America Movil (AM) confirmed on Tuesday that it will sell off various wireline and mobile assets in Mexico to reduce AM’s share of the local market to below the 50% threshold. Through its holdings in Telmex and Telcel, AM controls respective shares of 80% and 70% in the Mexican landline and wireless telephony markets. AM’s decision to divest assets corresponds with a March decree, issued by Mexican telecommunications regulator Ifetel, through which AM and national television broadcaster Televisa were informed they would be subject to newly-enacted rules and conditions that apply to dominant players in the national market. Under these rules, dominant fixed and wireless phone carriers are required, among other things, to (1) share infrastructure, (2) open their networks to virtual mobile network operators, (3) adopt asymmetric interconnection rates, (4) adhere to certain rules and conditions that govern local loop unbundling, and (5) eliminate national roaming charges. Dominant broadcasters such as Televisa, meanwhile, are barred from entering into exclusive content deals and are also required to share tower space with competitors. While declining to identify potential buyers or the properties to be sold, a spokesman for AM announced that his company would divest “certain assets . . . to a new and solid carrier independent from [AM] with experience in the telecom sector, with sound economic and technical resources.” As part of that plan, AM will also spin off its cellular base stations, towers, and relate infrastructure to an entity that is separate from Telcel. The spokesman also noted that AM would pursue these divestitures “to overcome the obstacle of insufficient investment by our competitors in Mexico” as he emphasized that AM’s Mexican and Latin American investments “have resulted in important and continuous productivity increases which we have passed on to our clients.” No timeline was given for the asset sale, which requires the approval of Ifetel. Declaring, “we’re living a new historic phase in the Mexican telecommunications sector, which began with last year’s constitutional reforms,” a former Mexican telecom official remarked: “we’re seeing the beginning of the end of a period of almost complete dominance.”