April 27, 2024

Leader Taps Mexican Discontent to Press His Agenda

“Their rates are really high, and then there’s no signal sometimes,” said Armando Gómez Fuentes, 42. “The signal goes away really quickly. It’s a mess.”

But there he stood recently at a Telcel store, waiting to buy a new phone, resigned to the dominance of the carrier, which controls 70 percent of the Mexican market, and doubtful that the country’s smaller rivals could do any better.

It is that well of popular frustration — over poor cellphone service, limited programming on television, flagging schools — that President Enrique Peña Nieto has tapped in a series of attention-getting moves that he promises will “transform Mexico” and accelerate growth in an economy that has expanded too slowly to lift the country out of the developing world.

He has promised to bring competition and more government oversight to the telecommunications market, taking aim at the monopoly-like control by one of the richest men in the world, Carlos Slim Helú. Also in the president’s sights is the giant media company Televisa, which dominates broadcasting through four networks and would face renewed competition under a proposal that could lead to the creation of two new channels. And his government has jailed the boss of the teachers’ union, the largest in Latin America, on accusations of embezzlement as part of a sweeping move to wrest full control of the schools from it.

It remains to be seen how any of the changes will turn out; Mexico has a long tradition of bold, finely shaped laws that are ultimately watered down or simply not enforced. The telecommunications proposal passed one chamber of Congress late Thursday and is now headed to the Senate.

But it seems clear that Mr. Peña Nieto has banked substantial political capital and bolstered his popularity, which may add momentum to thornier changes he plans, including opening up the state oil monopoly, long a source of national pride, to private investment.

The teachers’ union, Mr. Slim, Televisa — the targets, in the minds of many Mexicans, are hard to cheer for.

“He is trying to gain credibility and popularity,” said Helena Varela Guinot, a political scientist at the Ibero-American University in Mexico City. “He is saying, ‘I am a president that gets results, this is a government that is efficient, takes risks and goes after the big problems,’ although it is not clear in reality if his reforms will achieve the desired results.”

Those who remember the autocratic ways of Mr. Peña Nieto’s party, which governed Mexico for more than 70 years but was then ousted from power for 12, see a presidential power play that may yet deliver results, but with less space for those who disagree.

“His goal is to reshape the power of the presidency,” said Sergio Aguayo, a political analyst at the Colegio de México. “Not to the level it used to be, because that is impossible. But he is a true believer that Mexico needs a ‘presidentialist’ system.”

Some analysts see in his priorities a clear sign that he does not want his tenure defined by the country’s security problems, with thousands killed or missing in a war against drug and organized crime groups. Mr. Peña Nieto has argued that improving the economy and education in the long run will bring down the violence, and he has said little about the day-to-day mayhem that afflicts many parts of the country.

That may simply reflect the concerns of Mexicans, who rank the economy as a greater concern than crime.

“The same issues identified now are the same issues identified in the previous three presidential elections as top concerns: poverty, underemployment and economic growth,” said Roderic Ai Camp, a Mexico scholar at Claremont McKenna College in California who has written an analysis of Mr. Peña Nieto’s cabinet.

Still, the new president now faces the challenge of turning proposals into laws and, more important, carrying them out.

Mr. Peña Nieto recently persuaded his party, the PRI, or Institutional Revolutionary Party, at its annual gathering to lift its historic opposition to private investment in the oil industry and to consider the idea of tax levies on food and medicine, which the government is considering to raise revenue.

Earlier, he negotiated a “Pact for Mexico” with opposition parties to help speed overhaul efforts and avert the congressional gridlock, often led by his own party, that has thwarted previous administrations.

Mr. Slim, who owns about 8 percent of The New York Times Company, has publicly praised the president’s proposal and has said he welcomes competition. His business has been diversifying anyway, and the proposal would let him keep 50 percent of the market, while giving him something he has long sought: the possibility of entering the television market.

On Thursday, the International Olympic Committee awarded one of Mr. Slim’s companies, América Móvil, the Latin American broadcast rights to the 2014 Winter Games and the 2016 Summer Games “on all media platforms,” the company said in a statement.

Televisa, too, has said it officially welcomes the plan, which could allow it to expand its stake in the cellphone market through its partnership with a Slim rival, Iusacell.

Analysts have also questioned whether any serious competitor will emerge to threaten Televisa’s lock hold on soap operas and other popular programming.

“The reform is not bad, but neither is it a panacea,” Gerardo Esquivel, an economist at the Colegio de México, wrote on his blog in analyzing the plan.

Karla Zabludovsky contributed reporting.

Article source: http://www.nytimes.com/2013/03/23/world/americas/new-leader-taps-mexican-discontent-to-press-reform-agenda.html?partner=rss&emc=rss

Media Decoder: Times Company to Repay Carlos Slim Early

9:54 a.m. | Updated The New York Times Company said Wednesday that it would pay back the $250 million loan from Carlos Slim Helú, a Mexican telecommunications billionaire, on Aug. 15, freeing itself from one of its larger financial obligations.

Officials are beginning to challenge Carlos Slim's telecommunications empire.Peter Foley/Bloomberg NewsThe New York Times Company will settle its debt with Carlos Slim Helú on Aug. 15.

The repayment will come three and a half years before the loan is due and five months sooner than the company initially planned to settle the debt.

Janet L. Robinson, chief executive of the Times Company, and Arthur Sulzberger Jr., chairman and publisher of The New York Times, said in a message to employees that the company’s strengthened financial position enabled the early payback.

“Our ability to pay down this debt at this time is directly linked to the decisive steps we have taken to improve our financial flexibility over the past two years,” they wrote. “We remain focused as we move to the next phases of our business plans and as the uncertain global economy and the ongoing volatility in our industry continue. But today we take pride in this moment.”

The Times Company ended the first quarter with $352 million in cash and short-term investments on hand. The total cost of the loan, with a 14 percent interest rate, was approximately $279 million.

While the company will incur a $46 million loss on the prepayment in the third quarter, savings on interest over the next three and a half years will exceed $39 million each year.

Mr. Helú and members of his family hold about 7 percent of the Class A shares in the Times Company.

The Times Company has taken other steps recently to firm up its financial position, including a deal last month to sell most of its stake in the Fenway Sports Group, owners of the Boston Red Sox. It sold 390 of its 700 Class B units of the Fenway Sports Group to three separate buyers in a deal for $117 million. It now holds a 7 percent stake in the company.

Article source: http://feeds.nytimes.com/click.phdo?i=e11feb8189d462ee12ce7822e7d56d53