Mexico's ambitious bid to overhaul its telephone and television markets threaten the income of the main players, telecoms tycoon carlos slim and television giants emilio Azcarraga, and could force the two, to seek new business on each other's turf.
New law aims to provoke competition in the telecommunications industry and make more foreign ownership of the media and the telephone company, and to give regulators the power to force players to control more than 50% of the market, to sell some assets.
Has been described as the richest man in the world, because of the slim, have shaken the market the most bold attempt, the first time before the acquisition of Telmex fixed-line monopoly company reform programme in 1990.
Now, telmex's slim's telecoms giant company America Movil, its shares have since reform, on the part of the proposed on Monday. Investors are also selling Azcarraga broadcasting giant, visa, though less.
Reform will be how to carry out the uncertainty, the shares of the two companies bring greater pressure.
"We believe that the proposal put forward by the net risky company America Movil, visa, but all are negative, wrote:" in Brazil's itau, a bank analyst at massey gregorio soup.
Requirements, visa at a reduced public television channels provided by the opponent can wipe out 3%, the company's core profit, Marcy soups.
The grandiose element such as strong, forced superior enterprises to sell assets, as well as the opening of the market, more foreign investment will mean lower company America Movil, visa and for the future income, analysts agree.
Rogelio, goss said, "I think the government is positive," management of 8 billion pesos ($640 million), in Mexico City Actinver of rights and interests, and added that he expected, visa and America Movil company's share price fell further, still.
Zip code: 353440 details, such as, how to regulators could force the dominant company restructuring, in order to meet the market share of 50% ceiling, remains to be established.
But it is unclear what the bill situation, despite US President enrique pena, he introduced in congress to develop a plan with Mexico's two main opposition leaders.
Pena, Mr Pri members said that they have the confidence in May will be in congressional approval.
Company America Movil (AMXL. MX) (AMX. N) shares have lost almost $50 billion of market value, fell 5.8% year on year, and announced on Monday since the reform and opening, and the terai visa (TLVACPO. MX) (TV. N) shares have fallen by 1.1%.
Dominant player
Telmex control about 80% of the fixed-line market, Mr Slim's cellphone division of Mexico Telcel is about 70% of the market. In 2012, Mr Slim's mobile phone business in Mexico revenues for 277 billion pesos ($2.2 billion).
Azcarraga,, visa is estimated at around 60% of Mexico's radio market, but due to the nature of the business is more dispersed, it is difficult to regulators to calculate the company's market share.
, an analyst at moody's investors service in Mexico City, Nymia almeida said, if, visa and America Movil company was forced to reduce the assets, this will reduce the cash flow, this could mean that companies will have to reduce their debt burdens.
, visa and America Movil company in a statement released on Monday welcomed the reform. Two company officials declined to comment for this article.
This is not all bad news, Slim and Azcarraga. This two big tycoons have fought for years to enter each other's territory. Pena, he launched the reform could open the door, they will be able to do this.
Slim, a 72 - year - old still has maintained the Mexican TV market, but the bill seems to let him in, if he can satisfy certain requirements.
TV need to be provided to make ultrathin selling so-called triple play bundle tied up the phone, Internet and television, have been looking for something, his years in Mexico.
At the same time, Televisa handset joint venture with rival of broadcasting and TV azteca Iusacell, benefit if the government forced ultra-thin cutting his share of the market in Mexico. Iusacell is currently about 6% of Mexico's mobile market.
restructuring
Both thin and selection of Azcarraga restructuring their business or find foreign curb the influence of the reform.
Hotel Sentido Comun Mexican financial website editor, editor-in-chief, eduardo Garcia said, slim chance to tap into the new, the United States and to reduce his exposure in Mexico.
, "Garcia said:" he must have a "plan B", plan B, in my order, will get rid of the profit is low, in order to reduce the size of him, not his profits.
Slim can reduce his cell phone in the distant poor rural areas, "said Garcia, America Movil company ready to tighter regulation in Mexico expanded to Europe, recently.
However, since this has always been expensive.
In 2012, America Movil Dutch telecom companies spent billions of dollars to purchase the KPN, telekom Austria's big bet, but since then has fallen by two European shares in their company.
, visa did not take the same risks.
Radio station, which is one of the world's largest producer of Spanish language content, will face more fierce competition, with the reform will launch two new public television channels.
But, visa, it have been sold all over the world of soap operas, even can benefit from new sales channels, the chicago-based morningstar analyst Michael points out that Corty.
"Content is king", Corty said. "and,, visa is a leader in video content."
 



Other News:
Mexican telecoms reform opens door to all players
Mexico telecoms reform pits America Movil vs. Televisa
TNK-BP tycoons turn to ex-BP bosses for help in investing billions
Conde Nast launches slate of original programming
Italy's ENI sells Africa gas stake to China
Jobless claims data brightens labor market picture
Commander encouraged by anti-Taliban uprising
Seoul shares edge higher, autos stocks regain some lost ground