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Saturday, 10 April 2010 - Mexico may cut millions of cellphones to fight crime |
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    Read more with google mobile : Mexico may cut millions of cellphones to fight crime |

    Edition: U.S. Article Comments (2) Save Email Print Reprints Most Popular Most Shared Netanyahu ducks U.S. nuclear summit, fearing censure 1:31pm EDT Women tried to smuggle corpse onto plane? 06 Apr 2010 Regulators looking at antibacterial in soap 08 Apr 2010 Special Report: How the U.S. cracked open secret vaults at UBS 6:12am EDT Iran will not beg to avoid sanctions: Ahmadinejad 08 Apr 2010 Women tried to smuggle corpse onto plane? 06 Apr 2010 Workers strike over ban on drinking at work 08 Apr 2010 Regulators looking at antibacterial in soap 08 Apr 2010 Netanyahu ducks U.S. nuclear summit, fearing censure 1:31pm EDT Special Report: How the U.S. cracked open secret vaults at UBS 6:12am EDT Mexico may cut millions of cellphones to fight crime Noel Randewich MEXICO CITY Fri Apr 9, 2010 8:40am EDT A woman stands in front of a mobile phone shop in Mexico City October 20, 2009. Credit: Reuters/Daniel Aguilar MEXICO CITY (Reuters) - Tens of millions of Mexicans could find their cellphones disconnected this weekend if the government goes ahead with a new law meant to fight crime by forcing people to register their identities. World  |  Technology  |  Lifestyle  |  Mexico Advertisements on government radio and television have been urging Mexicans for weeks to register their cellphones by sending their personal details as a text message, but on Thursday 30 million lines remained unregistered as the Saturday deadline neared. Analysts said that any related losses for Mexico's largest wireless operator, America Movil, would be tiny relative to the company's overall sales. Still, America Movil, controlled by billionaire Carlos Slim, is urging senators to extend the deadline for implementing the law, passed a year ago to try to stop criminals from using cellphones for extortion and to negotiate ransoms in kidnappings. "Close to 30 million people will be affected ... many of whom depend on mobile phones as their only means of communication," America Movil's head of institutional relations, Guillermo Ferrer, said in emailed comments. Most of Mexico's 84 million mobile phones are prepaid handsets with a limited number of minutes of use that can be easily bought in stores. The phones can be topped up with more minutes through street corner vendors. America Movil has 71 percent of Mexico's wireless market, along with operations in Brazil, Chile and other countries in the region. Most of the rest of Mexico's cellphone market is in the hands of Spain's Telefonica. Telefonica said it planned to maintain voice, short text message and data services despite the authority's weekend deadline. "Telecommunications are of public interest, protected by the constitution ... and they can not be denied to the population," the company said in a statement late on Thursday. About 60 percent of its 17 million clients in Mexico have submitted their information. MOBILE EXTORTION Mexico is plagued by organized crime, from drug trafficking to express-kidnappings of taxi passengers to force them to make cash withdrawals from automatic teller machines. Increased media reports of kidnappings in 2008 led to calls for the cellphone registry. Critics have said the law would be ineffective because criminals can easily register phones under other people's identities. But telecommunications watchdog head Hector Osuna said in a radio interview on Thursday authorities planned to check the legitimacy of data people submit. This week, senators refused requests from telephone companies to extend the deadline for a year, but discussions were ongoing and a last-minute vote could not be ruled out. The Reforma newspaper reported that a judge refused to give Telcel an injunction to stop the deadline. Based on average spending habits, America Movil stands to lose around $10 million in revenue per day if the 30 million unregistered lines are cut. "We think that disconnected users would look to register their line in the short term, though there could be an inevitable loss of revenues by the mobile companies," BBVA analyst Andres Coello wrote in a note to clients. Itau Securities analyst Martin Lara estimated that it would take a week, on average, to reactivate lines that were cut or to acquire new lines. That would cost America Movil 0.2 percent of projected sales for 2010. If people who depend heavily on their wireless phones for work have already registered their lines, there could be less of an effect on America Movil's revenue. America Movil's ADRs were down 1.26 percent, or 64 cents, at $50.34 in late trading on the New York Stock Exchange. (Reporting by Noel Randewich; Additional reporting by Cyntia Barrera Diaz; Editing by Toni Reinhold and Valerie Lee) World Technology Lifestyle Mexico Comments See All Comments (2)  |  Post Comment Apr 09, 2010 1:07am EDT Is this a good idea or?…Say I am a major criminal in Mexico and I need a cell phone….oh I can’t buy one any more?…a problem?…..oh over there, in the park…there is a lady using one….hey Ricco, yeah you, go over and shoot her and bring me back the phone..see..what problem? The reality will probably be worse then my scenario…. RayGunsmess Report As Abusive     Apr 09, 2010 2:34pm EDT This is the same stupidity used to outlaw guns in some cities and states in the United States. It only causes problems for people who abide by laws, laws are no problem for people that don’t keep them anyway. There are many poor people in Mexico that would be happy to buy a phone, register it and then give it to a stranger for $20.00.. dlapham Report As Abusive       See All Comments (2)       Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.   More from Reuters How the U.S. cracked open the secret vaults at UBS When executives from UBS were summoned by U.S. regulators over a tax fraud probe, the plan was simple: admit guilt and move on. Reuters investigates the events that pushed Switzerland's largest bank to the brink.  Full Article  U.S. begins new wave of UBS client tax cases UBS Fannie's bad business model It wasn't the pursuit of profits at the expense of home ownership for poorer Americans that caused Fannie Mae's collapse, says the former CEO.  Full Article  Making the case against Citi James Saft: Sold signs aren't enough Banks One step at a time Is it possible to make money by giving away your product? After donating more than 400,000 pairs of shoes, Blake Mycoskie thinks so.  Full Article  Video: TOMS shoes Factbox: A look at TOMS numbers Small Business © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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