América Movil, the Mexican-based mobile telecoms company that was spun out of Teléfonos de México, announced that it would buy a majority of the country's fixed link telephone company. It is paying France Telecom US$417m for a 51% stake in the Compañía de Telecomunicaciones de El Salvador (CTES). The CTES has about 623,000 subscribers and dominates the local market, with a 95% share. It also has 152,000 mobile phone subscribers.
France Telecom took control of CTES five years ago when the company was privatised. Ironically, its bid of US$275m then beat Telmex. The government still owns 43% of CTES and employees have a 6% stake.
- The country bowed to pressure from the US and withdrew from the G-21. This is the group of emerging market countries, led by Brazil, India and China, which argued that tariff reform should be a two-way street. They say that they will only lower their tariffs on condition that the industrialised countries open up their markets to agricultural products from emerging market countries and end export subsidies for their farmers. El Salvador felt that its relationship with the US was being compromised by the G21's tough line.
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