Telecoms in Mexico: Slim?s pickings Thu, 10 Jul 2008 13:30:55 -0000 More competition should help to drive down exorbitant phone chargesIT HAS become quaint, in the era of Skype and unlimited calling plans, to worry too much about the cost of phone calls. But it is a textbook case of the old saying: "Them as has, gets". The well-connected executive can use any number of voice-over-internet services to make free calls; but the rural poor, if they have phones at all, must pay high rates. Perhaps nowhere is this more true than in Mexico, where Carlos Slim, by some estimates the world's richest man, dominates the telecoms industry. He controls Telmex, which has 81% of the fixed-line market, and Telcel, which has 72% of the mobile market. In the first quarter of 2008 Telmex had a profit margin before interest, taxes, depreciation and amortisation of 48.7%; for Telcel the figure was 52.1%.This is well above the global average for telecoms firms of 35%, says Martin Lara, an analyst at Vector Casa de Bolsa, a research firm. Base tariffs have fallen in Mexico in recent years, but they do not include things like international calls or calls to mobile phones. Competition has not helped much, because smaller firms have been reluctant to undercut Mr Slim's companies by very much--and high prices boost their profits, too. "No one wants to destroy these profits overnight," says Mr Lara. ...
BBC News | Business | World Edition
Oil slides lower from record high Wed, 23 Jul 2008 13:58:24 -0000 The price of oil keeps on sliding as US demand wanes and a hurricane in the Gulf of Mexico takes a favourable course. Indian stocks up after key vote Wed, 23 Jul 2008 10:32:43 -0000 Indian stocks rise more than 5% after the government wins a vote of confidence that could enable key reforms. Bush drops veto to housing bill Wed, 23 Jul 2008 16:48:21 -0000 The White House says President George W Bush has dropped opposition to a housing bill that could boost the US economy.
NYT > World Business
Toyota Moves Ahead of G.M. in Sales Wed, 23 Jul 2008 14:53:54 -0000 Toyota sold nearly 300,000 more vehicles than G.M. in the first half of 2008 and appears on its way to ending G.M.’s 77-year reign as the world’s largest automaker.
Prices of Food and Gas Take a Toll in Asia Wed, 23 Jul 2008 04:25:29 -0000 With large price increases for commonly used commodities, countries like India and Vietnam are already having to deal with double-digit inflation.
BP Will Withdraw Its Engineers in Russia Wed, 23 Jul 2008 04:27:37 -0000 BP is fending off a corporate raid by its Russian partners backed by Russian regulatory authorities, part of the strategy of which is to expel expatriate staff members from their joint venture.
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