The article primarily concerns the aspirations of Mexico to offer affordable prices regarding both internet, as well as, mobile services. This is because the telecom industry of the country has been considered to be highly inefficient and also overpriced. As a result, the Congress approved a plan by the president i.e. Enrique Pena to overhaul the regulations of industry. The new regulations as proposed by the president will compel the providers of the services to sell their assets if they exude control of over fifty percent of the market share. Carlos Slim, a billionaire from Mexico, who is the owner of Telcel is an obvious target of the plan.
The article mentions that the reforms will culminate to increase in foreign investments in the industry thus allowing the foreign entities to become large shareholders of domestic companies. Some of the foreign entities include Nokia, Alcatel-Lucent SA, Motorola Mobility and also Huawei Technologies. (Montes 2) Telcel often prefers not giving these operators access to its network for purposes of maintaining higher prices. The project will essentially eliminate problems such as higher costs, concentrated networks together with low investments per capita in regards of the member states of OECD.
The Pena Nieto government has made a decisive move regarding the telecoms sector. Also, the measures to be undertaken by the government does not any way depict extremism that would damage the personal fortunes of established entrepreneurs such as Carlos Slim. As a result, no course for alarm exists. Therefore, increasing the investments in the telecommunications networks, as well as, encouraging competition is a positive step towards streamlining of the telecommunications industry in Mexico.
("Demand And Supply - Economics Tuition")
An increase in competition in the telecommunication's industry of the Mexico will culminate to the shifting of the supply curve from S1 to S2 consequently reducing the price from P1 to P3.
Work Cited
"Demand and Supply - Economics Tuition". Economics Tuition Singapore. N.P., 2014. Web. 26 Apr. 2016.
Montes, Juan. Mexico Plans Broadband Overhaul To Boost Wireless Competition. 1st ed. Mexico City: WSJ. 2014.
