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GRUPO IUSACELL FILES ANTITRUST SUIT AGAINST TELEFONOS DE MEXICO

MEXICO CITY, Nov. 7 /PRNewswire/ -- Grupo Iusacell, S.A. de C.V. (NYSE: CEL, CEL.D) announces that it has filed a lawsuit with the Mexican Federal Competition Commission against Telefonos de Mexico, S.A. de C.V. and Radio Movil Dipsa, S.A. de C.V. (Telcel) for engaging in monopolistic practices in the Mexican telecommunications market. As a result of filing this lawsuit, Grupo Iusacell hopes to achieve the structural separation of Telefonos de Mexico from its cellular subsidiary, Telcel.

The lawsuit cites activities that constitute monopolistic practices which are prohibited by the Federal Law of Competition. The lawsuit contends that Telefonos de Mexico utilizes its monopolistic power in the local telephony market to subsidize and grant other advantages to its cellular subsidiary, Telcel, consequently discriminating against its primary competitor, Grupo Iusacell, as well as other cellular operators.

Grupo Iusacell said Telefonos de Mexico engages in cross subsidies and discrimination with the objective of reducing current and future competition for fixed and mobile telecommunications. Telefonos de Mexico has historically engaged in those practices, but Grupo Iusacell said it believes that the evidence and analysis it is presenting to the authorities today make a compelling case that it is time for Telefonos de Mexico's monopolistic behavior to stop.

The lawsuit is based on two antitrust violations that impact the competition in general, and Grupo Iusacell in particular, the company said. These acts are directly related to the control which Telefonos de Mexico exercises over essential facilities as well as over Telcel. These violations are:

-- Cross subsidies between Telefonos de Mexico and Telcel.

-- Telefonos de Mexico's abuse of its substantial market power, which allows it to implement monopolistic practices, makes it difficult for Grupo Iusacell to interconnect with Telefonos de Mexico's public telecommunications networks.

Grupo Iusacell said Telefonos de Mexico, disregarding the supervision of the Secretariat of Communications and Transport (the "SCT"), functions in an anti-competitive manner and relies on monopolistic practices to favor Telcel. If Telefonos de Mexico's behavior is allowed to continue, its monopoly will be sustained, and the government's efforts to further competition will be frustrated. By harming players attempting to compete in these markets, it will be more difficult for the Mexican people to enjoy telecommunications options that are competitive and low cost.

Grupo Iusacell also announced that it will shortly file a suit with the SCT that contends that Telefonos de Mexico and Telcel have engaged in violations of both their concessions as well as the telecommunications law of the country.

Grupo Iusacell is making use of mechanisms in Mexican legislation whose objectives are to protect its constitutional rights for fair and equitable competition. The Company has resorted to the Federal Competition Commission to establish the necessary means and sanctions provided for in the law to prevent Telefonos de Mexico from continuing to enjoy the monopolistic power it has had to date. A favorable ruling from the Commission will not only benefit cellular operators, but also future participants in the telecommunications industry, as well as the country in general.

Grupo Iusacell is the leading independent telecommunications company in Mexico. It is the non-wireline cellular service provider in four of Mexico's nine regions in the central portion of Mexico (including Mexico City) covering a total of 64 million POPs -- representing 70% of the country's total. In addition to its cellular operations, Grupo Iusacell is continuing with its commercial trial of radiotelephony services, and has recently received the second long distance license in Mexico with which it plans to provide domestic and international long distance services.

/delval/
 -0- 11/7/95


/CONTACT: Juan Pablo Salinas of Grupo Iusacell, 011-525-104-4120/

(CEL TMX TFONY)

CO: Grupo Iusacell, S.A. de C.V.; Mexican Federal Competition

Commission; Telefonos de Mexico, S.A. de C.V.; Radio Movil Dipsa,

S.A. de C.V. ST: IN: TLS SU:

JO-LJ -- PHTU029 -- 0410 11/07/95 16:57 EST
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Date:Nov 7, 1995
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