Telefonica has been slapped with a record fine in Mexico after its Pegaso unit was ruled to have not met minimum mobile call quality standards.
Tests carried out by the Federal Telecommunications Institute (IFT) in the city of Leon, Guanajuato in January f ound a high proportion of dropped calls.
As a result, the regulator ordered the company to pay 410.9 million pesos (€22.8 million), the largest fine imposed by the IFT since its formation in 2013. The decision was reached by a majority of five votes to two.
Telefonica has 15 days to challenge the decision.
Telefonica acquired a 92% stake in Pegaso from Sprint and Leap Wireless in 2002, and eventually increased its holding to 100%.
Telefonica began integrating Pegaso under its Movistar brand in 2003. It is unclear if the Spanish incumbent still actively pushes Pegaso-branded services in Mexico.
