Mexico drugs shoot-out kills 13

 10 May 2011 Last updated at 07:05 ET  The drugs cartel camp was on an island in Falcon Lake Mexican marines have killed at least 12 suspected members of the Zeta drugs cartel after stumbling upon a camp at a lake on the Mexico-US border.

A soldier was also killed in the gunbattle on Sunday.

The camp was on an island in Falcon Lake, a dammed section of the Rio Grande, in the north-eastern state of Tamaulipas.

The authorities believe the gang used the base for smuggling marijuana into the United States by speedboat.

Turf war

The Mexican navy said the gunmen opened fire first, when a marine patrol discovered their encampment.

The authorities seized more than 20 guns after the shootout, including several assault rifles.

Falcon Lake is where the American citizen David Hartley is thought to have been chased and gunned down last September. His body has not been found and Mexican investigators have reported no progress in the case.

The Zetas are locked in a fierce turf war with the Gulf cartel that has turned much of Tamaulipas state into a virtual war zone.

Last month security forces discovered more than 40 graves containing 183 bodies. Many of the victims had apparently been pulled off passenger buses by Zetas gunmen trying to recruit them.

Mexico Takes Aim at a Titan in Telecom

But over the last few weeks, a series of developments is threatening to chip away at Mr. Slim’s dominance.

First, Mexico’s antitrust agency imposed a $1 billion fine on the wireless company Telcel, the local unit of Mr. Slim’s pan-Latin company América Móvil. Then, at the end of last month, the Mexican congress approved a tough new antimonopoly law that raises fines for monopolistic practices and permits prison terms for executives who have been found to engage in them.

Last week, a Supreme Court ruling halted a legal maneuver that Mr. Slim’s companies had used to fight lower tariffs. The decision gives new heft to the country’s telecom regulator as it begins to slash the high interconnection fees that América Móvil charges other companies.

The flurry of activity after years of inaction suggests that at last Mexican authorities may be willing to challenge Mr. Slim and make good on their pledge to provide a more competitive environment for the telecommunications industry.

The actions also send a signal to other large companies in Mexico that they too may soon come under closer scrutiny. For years, powerful companies have resisted regulation by tying up rulings in the courts and using their political influence.

It is too early to tell, though, how effective the efforts will be and whether they will stick.

América Móvil’s Mexican units, the mobile carrier Telcel and the fixed-line firm Telmex, will continue their legal challenges, and analysts say the fine may not be paid for years, if ever. Meanwhile, Telmex now claims more than 80 percent of all fixed lines and Telcel more than 70 percent of wireless phones.

Despite the new antitrust law, Mexican lawmakers and regulators have stalled on other measures to haul telecommunications rules into the 21st century.

And as the July 2012 general election approaches, political support for tougher regulation against Mr. Slim — widely reported to be the world’s wealthiest man — and other magnates may wane as parties jockey for support from the business elite. (Mr. Slim is the second-largest shareholder in The New York Times, behind the Sulzberger family, and in 2009 extended a $250 million loan to The Times, which the company says it intends to repay in early 2012.)

“The big companies believe that when the law is applied to them it’s because of personal animosity and that the law only applies to their enemies,” said Eduardo Pérez Motta, the president of the Federal Competition Commission, which imposed the billion-dollar fine. “They think it is a country of favors, friendships and privileges.”

Executives at Mr. Slim’s companies argue that they benefit the Mexican people by reaching the country’s poorer communities, while their competitors want to sell only to the rich. Indeed, in almost half of the country, Telmex is the only company with any infrastructure at all, because its concession requires it to be there.

In public appearances, Mr. Slim responds to questions about monopoly power by arguing that he has taken on powerful international competitors such as AT&T and that there are multiple players in the Mexican market. He often hands out charts showing how Mexico compares favorably to many other developing countries in mobile coverage, and argues that international studies showing that Mexico’s prices are high are skewed by exchange rates. He also says that he faces a barrier because regulators refuse to grant him a pay-TV license, while cable companies now compete with him by offering phone and Internet service.

Business competition is viewed as an important issue for Mexico’s economic future. Studies from the World Bank and the Organization for Economic Cooperation and Development suggest that Mexico’s monopolies stunt its growth. Although the economy expanded an estimated 5 percent in the first quarter, that pace still lags other large Latin American economies.

Big companies control many basic goods and services, including cement, beer, corn flour, and medicine distribution. The resulting high prices, Mr. Pérez Motta argues, harden Mexico’s gap between rich and poor because it forces poor families to spend more of their income on staples.

It is the fight over telecommunications, though, that has grabbed the recent attention.

 

Mexico Takes Aim at a Titan in Telecom

But over the last few weeks, a series of developments is threatening to chip away at Mr. Slim’s dominance.

First, Mexico’s antitrust agency imposed a $1 billion fine on the wireless company Telcel, the local unit of Mr. Slim’s pan-Latin company América Móvil. Then, at the end of last month, the Mexican congress approved a tough new antimonopoly law that raises fines for monopolistic practices and permits prison terms for executives who have been found to engage in them.

Last week, a Supreme Court ruling halted a legal maneuver that Mr. Slim’s companies had used to fight lower tariffs. The decision gives new heft to the country’s telecom regulator as it begins to slash the high interconnection fees that América Móvil charges other companies.

The flurry of activity after years of inaction suggests that at last Mexican authorities may be willing to challenge Mr. Slim and make good on their pledge to provide a more competitive environment for the telecommunications industry.

The actions also send a signal to other large companies in Mexico that they too may soon come under closer scrutiny. For years, powerful companies have resisted regulation by tying up rulings in the courts and using their political influence.

It is too early to tell, though, how effective the efforts will be and whether they will stick.

América Móvil’s Mexican units, the mobile carrier Telcel and the fixed-line firm Telmex, will continue their legal challenges, and analysts say the fine may not be paid for years, if ever. Meanwhile, Telmex now claims more than 80 percent of all fixed lines and Telcel more than 70 percent of wireless phones.

Despite the new antitrust law, Mexican lawmakers and regulators have stalled on other measures to haul telecommunications rules into the 21st century.

And as the July 2012 general election approaches, political support for tougher regulation against Mr. Slim — widely reported to be the world’s wealthiest man — and other magnates may wane as parties jockey for support from the business elite. (Mr. Slim is the second-largest shareholder in The New York Times, behind the Sulzberger family, and in 2009 extended a $250 million loan to The Times, which the company says it intends to repay in early 2012.)

“The big companies believe that when the law is applied to them it’s because of personal animosity and that the law only applies to their enemies,” said Eduardo Pérez Motta, the president of the Federal Competition Commission, which imposed the billion-dollar fine. “They think it is a country of favors, friendships and privileges.”

Executives at Mr. Slim’s companies argue that they benefit the Mexican people by reaching the country’s poorer communities, while their competitors want to sell only to the rich. Indeed, in almost half of the country, Telmex is the only company with any infrastructure at all, because its concession requires it to be there.

In public appearances, Mr. Slim responds to questions about monopoly power by arguing that he has taken on powerful international competitors such as AT&T and that there are multiple players in the Mexican market. He often hands out charts showing how Mexico compares favorably to many other developing countries in mobile coverage, and argues that international studies showing that Mexico’s prices are high are skewed by exchange rates. He also says that he faces a barrier because regulators refuse to grant him a pay-TV license, while cable companies now compete with him by offering phone and Internet service.

Business competition is viewed as an important issue for Mexico’s economic future. Studies from the World Bank and the Organization for Economic Cooperation and Development suggest that Mexico’s monopolies stunt its growth. Although the economy expanded an estimated 5 percent in the first quarter, that pace still lags other large Latin American economies.

Big companies control many basic goods and services, including cement, beer, corn flour, and medicine distribution. The resulting high prices, Mr. Pérez Motta argues, harden Mexico’s gap between rich and poor because it forces poor families to spend more of their income on staples.

It is the fight over telecommunications, though, that has grabbed the recent attention.

 

Mexico Takes Aim at a Titan in Telecom

But over the last few weeks, a series of developments is threatening to chip away at Mr. Slim’s dominance.

First, Mexico’s antitrust agency imposed a $1 billion fine on the wireless company Telcel, the local unit of Mr. Slim’s pan-Latin company América Móvil. Then, at the end of last month, the Mexican congress approved a tough new antimonopoly law that raises fines for monopolistic practices and permits prison terms for executives who have been found to engage in them.

Last week, a Supreme Court ruling halted a legal maneuver that Mr. Slim’s companies had used to fight lower tariffs. The decision gives new heft to the country’s telecom regulator as it begins to slash the high interconnection fees that América Móvil charges other companies.

The flurry of activity after years of inaction suggests that at last Mexican authorities may be willing to challenge Mr. Slim and make good on their pledge to provide a more competitive environment for the telecommunications industry.

The actions also send a signal to other large companies in Mexico that they too may soon come under closer scrutiny. For years, powerful companies have resisted regulation by tying up rulings in the courts and using their political influence.

It is too early to tell, though, how effective the efforts will be and whether they will stick.

América Móvil’s Mexican units, the mobile carrier Telcel and the fixed-line firm Telmex, will continue their legal challenges, and analysts say the fine may not be paid for years, if ever. Meanwhile, Telmex now claims more than 80 percent of all fixed lines and Telcel more than 70 percent of wireless phones.

Despite the new antitrust law, Mexican lawmakers and regulators have stalled on other measures to haul telecommunications rules into the 21st century.

And as the July 2012 general election approaches, political support for tougher regulation against Mr. Slim — widely reported to be the world’s wealthiest man — and other magnates may wane as parties jockey for support from the business elite. (Mr. Slim is the second-largest shareholder in The New York Times, behind the Sulzberger family, and in 2009 extended a $250 million loan to The Times, which the company says it intends to repay in early 2012.)

“The big companies believe that when the law is applied to them it’s because of personal animosity and that the law only applies to their enemies,” said Eduardo Pérez Motta, the president of the Federal Competition Commission, which imposed the billion-dollar fine. “They think it is a country of favors, friendships and privileges.”

Executives at Mr. Slim’s companies argue that they benefit the Mexican people by reaching the country’s poorer communities, while their competitors want to sell only to the rich. Indeed, in almost half of the country, Telmex is the only company with any infrastructure at all, because its concession requires it to be there.

In public appearances, Mr. Slim responds to questions about monopoly power by arguing that he has taken on powerful international competitors such as AT&T and that there are multiple players in the Mexican market. He often hands out charts showing how Mexico compares favorably to many other developing countries in mobile coverage, and argues that international studies showing that Mexico’s prices are high are skewed by exchange rates. He also says that he faces a barrier because regulators refuse to grant him a pay-TV license, while cable companies now compete with him by offering phone and Internet service.

Business competition is viewed as an important issue for Mexico’s economic future. Studies from the World Bank and the Organization for Economic Cooperation and Development suggest that Mexico’s monopolies stunt its growth. Although the economy expanded an estimated 5 percent in the first quarter, that pace still lags other large Latin American economies.

Big companies control many basic goods and services, including cement, beer, corn flour, and medicine distribution. The resulting high prices, Mr. Pérez Motta argues, harden Mexico’s gap between rich and poor because it forces poor families to spend more of their income on staples.

It is the fight over telecommunications, though, that has grabbed the recent attention.

 

Tens of Thousands March in Mexico City

The silence was to honor the dead — more than 35,000 since President Felipe Calderón sent the military to fight drug cartels four and a half years ago.

Among the dead is Mr. Sicilia’s son, killed seven weeks ago in the colonial city of Cuernavaca.

Since then, Mr. Sicilia’s grief and fury have resonated with many Mexicans who believe they have become the ignored victims in a battle between organized crime on one side and soldiers and the police on the other.

At the rally Sunday, Mr. Sicilia called on the government to change its strategy in the war, calling first for the resignation of Genaro García Luna, the director of public security and an architect of Mr. Calderón’s battle against the drug gangs. “We want to hear a message from the president of the republic that with this resignation, yes, he has heard us,” Mr. Sicilia said.

The city police estimated that as many as 150,000 people took part in the march, although the number of people who finally gathered in the plaza late Sunday afternoon to hear Mr. Sicilia and other grieving families speak, seemed considerably smaller.

Since Mr. Calderón began his crackdown, sending soldiers to patrol large parts of northern and western Mexico, the government has argued that the dead are almost all members of rival gangs killed as drug cartels fight over territory and smuggling routes to the United States.

But the violence continues to increase and the toll of innocent victims has mounted as drug gangs have become more ruthless. Authorities have failed to check the killings because of a what even the government admits is a combination of corruption, fear and inefficiency.

New horrors have been revealed in the past few weeks. Mr. Sicilia’s son was found dead along with six other people, supposedly killed by a drug cartel. Then, soldiers found mass graves in the northeastern state of Tamaulipas that held 183 bodies, many believed to be people kidnapped from public buses on their way to the border. Meanwhile, the authorities have pulled 168 other bodies from pits in the central state of Durango.

The government has remained on the defensive, presenting the choice as one between either backing down and letting organized crime take hold, or continuing the fight along the same lines.

On Thursday, as Mr. Sicilia set on his march from his hometown, Cuernavaca, Mr. Calderón insisted that he would not pull the military from the streets, as many Mexicans have asked. “We are right, we have the law and we have the strength, we will win,” he said.

 

Mexico Discovers 145 Corpses in Mass Graves

。 VOA News ?April 15, 2011

Mexican authorities have pulled dozens of corpses from mass graves in a state near the U.S. border, with the latest body count standing at 145.

Authorities have arrested 16 municipal police officers accused of protecting drug gang hitmen believed to be behind the Tamaulipas state massacres.

Mexican officials say the Zetas drug gang is responsible for the killings. They say they have arrested 17 members of the gang so far.

At least some of the victims appear to have been passengers on buses traveling through the area.

Migrants trying to reach the United States often cross through Tamaulipas.? The state is where 72 Central American migrants were found shot to death last August.? The Zetas have been blamed for that massacre as well.

Drug-related killings have claimed at least 35,000 lives since 2006, when President Felipe Calderon took office and launched an offensive against the cartels.

The Zetas began as a Mexican military unit that defected and began working with the Gulf cartel, based in Juarez, Mexico, across the Rio Grande River from the U.S. city of El Paso, Texas.? The Zetas split from the Gulf cartel last year.? The two groups are now fierce rivals.

Some information for this report was provided by AP, AFP and Reuters.

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