Stocks Drop after Telecommunication Reform Announced in Mexico

"Welcome Competition."

Yesterday morning, the initiative to create a constitutional reform in telecommunications was presented to Congress in Mexico.

"The democratic spirit of this reform is clear: to serve the country although it may have some challenges. But, it also opens up new opportunities that will allow for companies in this industry to grow, invest and innovate, improve their rates and raise the quality of their services," said Mexican President, Enrique Peña Nieto.

After a ceremony where Peña Nieto presented the motives behind this initiative, lawmakers from the various parties that make up the political sphere of the country signed a pact to transform this initiative into reality.

With the exception of two television broadcaster who will not be allowed to take part in this bill. This initiative raises the bid for all different types of media sources which include television, radio, telephone and data.

In another section of this initiative, it discusses the creation of the Federal Institute for Telecommunications which would replace Cofetel.

For Telecommunication Giants like Televisa and America Movil, this change could mean a lot. After the announcement of this reform, stocks for both of these groups reduced their value and yet, Emilio Azcarraga, President of Grupo Televisa said "Welcome Competition."


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