The Mexican telecoms regulator has ruled that the interconnection rate on the network of mobile operator Telcel will be Ps0.3912 (US$0.0322) per minute, far lower than the amount that Telcel was reportedly seeking.
The decision was part of a ruling by…
The Mexican telecoms regulator has ruled that the interconnection rate on the network of mobile operator Telcel will be Ps0.3912 (US$0.0322) per minute, far lower than the amount that Telcel was reportedly seeking.
The decision was part of a ruling by the regulator Cofetel yesterday on a dispute between Telcel and another telco, Alestra, over interconnection rates.
According to newspaper El Universal, Telcel had agreed with its sister company Telmex and the local unit of Spain’s Telefonica that the interconnection rate should be Ps0.95 (US$0.078) per minute.
Cofetel said in a statement that its ruling on the lower rate was consistent with its policy of gradually reducing the interconnection rates in the country in order to produce better prices for the end users.
The finance director at mobile operator Telcel has warned that a reduction in interconnection rates in the country would be a disincentive to investment and would have a negative impact on the penetration of services, according to media reports.
The Mexican newspaper El Economista reported that Carlos Garcia Moreno also said that the only way to produce lower charges for consumers is through an increase in supply, and this is achieved through high investment.
Moreno’s comments come amidst a dispute that flared up in early March between Telcel and other operators over interconnection charges.
Some 25 companies reportedly signed a document saying that they would not pay interconnection fees to Telcel and calling for pro-competition regulation.
Telcel did not reply to questions before the press deadline.
Regional telecoms giant America Movil holds majority stakes in both Telcel and Telmex.