Could Regulatory Changes in Mexico Signal the End for Carlos Slim's Empire? Nathaniel Parish Flannery - Forbes
go to original April 12, 2014

Slim controls almost all of Mexico’s telephone communication infrastructure. (Susana Gonzalez/ Bloomberg)

Carlos Slim, Latin America’s wealthiest businessman, has long enjoyed a dominant position in Mexico’s telecom sector. New rules spearheaded by the administration of Mexican President Enrique Peña Nieto, however, could threaten Slim’s position in the market.

Right now Slim and his company, America Movil, have a behemoth presence in Mexico. According to The Economist, “América Móvil controls 80% of fixed-line and 70% of mobile subscriptions, giving it a massive advantage when it comes to selling internet access. Although his businesses are exceptionally profitable by global standards, the services are slow and expensive, and their uptake low, even by Latin American standards.”

Slim’s net worth is estimated at $71 billion, more than double the annual revenues generated by Mexico’s entire telecom sector. According to some estimates Slim’s companies cost Mexico $129 billion over the course of four years, an amount that is equal to 2% of Mexico’s GDP.

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