Hong Kong competition law unlikely to be as far-reaching as Mexico's, official says

Stricter competition laws in Mexico have forced the man who was once the world's richest to break up his telecoms empire. But Hong Kong is not likely to see the dramatic splitting of tycoons' companies once similar regulations kick in next year, according to the former head of Mexico's competition watchdog.

In Hong Kong, there is Li Ka-shing, whose business empire reaches every facet of life. Mexico has Carlos Slim - once the top and now the world's third-richest man on the Forbes list.

His interests extend from telecommunications to financial and retail services.

After two decades of dominance in the telecoms market, this year Slim proposed breaking up America Movil, which dominates 70 per cent of Mexico's mobile-phone market and 80 per cent of its landlines. Unless the Latin American giant reduces its market share, it will be subjected to stricter rules under the country's pro-competition reforms.

Drastic changes in the market did not happen in one day - it took years of advocacy by the Mexican Federal Competition Commission after competition laws were implemented in the country two decades ago.

"The first recommendation we made in telecoms was in 2005," said Eduardo Perez Motta, former chairman of the commission, during a visit to Hong Kong this month.

This year, America Movil was forced to cut interconnection rates it charges competitors when consumers make calls to numbers operated by other telecoms firms. The move would lower phone charges, generating US$6 billion of savings for consumers, Perez Motta estimated.