MEXICO CITY (Reuters) - Billionaire Carlos Slim has had harsh words for Mexico’s presidential frontrunner, saying recently he is “concerned and afraid” about what leftist Andres Manuel Lopez Obrador might do if elected.
But a victory by Lopez Obrador, who holds a double-digit lead in most polls before the July 1 vote, could provide upside for Slim’s fortunes, particularly with regard to his America Movil (AMXL.MX) telecommunications empire, Reuters interviews with a dozen close friends, partners and other people familiar with their dealings show.
Lopez Obrador’s pick for telecoms minister, Javier Jimenez, told Reuters he favors re-examining some regulations stemming from Mexico’s landmark 2014 telecommunications reform, a law that has clipped America Movil’s profits and inhibited its expansion.
That is because Slim’s company, which possesses the largest network in Mexico, could play a key role in delivering cell coverage to rural areas but complains current regulations hold it back.
Lopez Obrador has championed better connectivity for the nation’s impoverished farmers and indigenous people, who are some of his strongest supporters.
“We have to define a policy so that within six years there is the possibility of 5G across the whole country,” said Jimenez, who went to college with Slim and has known him for some 60 years. He emphasized that all players would be invited to take part.
Jimenez said such a shift could include reviewing criteria for evaluating “preponderance.” That concept in the telecoms law triggers tougher regulation for players with more than 50 percent market share. America Movil still accounts for more than 60
