Margin Squeeze in Mexican Mobile Telecommunications

Abstract

The debate over the Competition Commission's determination that TELCEL is incurring a margin squeeze has been centered (almost) exclusively on the enormous size of the fine imposed and the polarized nature of the Commissioners’ votesâ€â€but there has not been a proper discussion on the economic reasoning over which this case was constructed. (Víctor Pavón-Villamayor, Federal Telecommunications Commission, Mexico)