Britain’s flamboyant entrepreneur, Richard Branson, and founder of the Virgin
Group, is going to take on the world’s second richest man, Carlos Slim, in his
own backyard.
Branson said next year he is going enter the cell phone market in México, which is currently controlled by Carlos Slim’s América Móvil. “I think there’s room for both of us. I don’t think [Carlos Slim] will suffer much from our presence,” Branson told Expansión magazine.
Arturo Elías Ayub, spokesperson for Carlos Slim and his son-in law, said, “Competition is always welcomed.”
Branson is taking advantage of México’s new telecommunication law aimed at increasing competition in the phone and television industries. América Móvil currently controls 80% of México’s landline phone and 70% of the country’s wireless market.
The new telecommunications law imposes a 50% market share limit and created a new regulatory body with power to revoke operating licenses for monopolistic practices.
Branson started Virgin Mobile Latin America (VMLA), in 2011. The company buys airtime minutes wholesale and resells them under its brand. VMLA operates in Chile and Colombia. According to Expansión, 2011 was also the year that Branson received his licenses to operate in México, which he now plans to do in 2014.
(from Forbes)
Branson said next year he is going enter the cell phone market in México, which is currently controlled by Carlos Slim’s América Móvil. “I think there’s room for both of us. I don’t think [Carlos Slim] will suffer much from our presence,” Branson told Expansión magazine.
Arturo Elías Ayub, spokesperson for Carlos Slim and his son-in law, said, “Competition is always welcomed.”
Branson is taking advantage of México’s new telecommunication law aimed at increasing competition in the phone and television industries. América Móvil currently controls 80% of México’s landline phone and 70% of the country’s wireless market.
The new telecommunications law imposes a 50% market share limit and created a new regulatory body with power to revoke operating licenses for monopolistic practices.
Branson started Virgin Mobile Latin America (VMLA), in 2011. The company buys airtime minutes wholesale and resells them under its brand. VMLA operates in Chile and Colombia. According to Expansión, 2011 was also the year that Branson received his licenses to operate in México, which he now plans to do in 2014.
(from Forbes)
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