Mexico’s Federal Competition Commission (CFC) announced proposals to resolve what it called the two main telecommunications problems: interconnection and insufficient TV competition.
It recommended that a group of international experts decide on the…
Mexico’s Federal Competition Commission (CFC) announced proposals to resolve what it called the two main telecommunications problems: interconnection and insufficient TV competition.
It recommended that a group of international experts decide on the interconnection fees operators may charge.
It said that once pro-competition legislation on interconnection fees had been implemented, Telmex (another subsidiary of America Movil) should be allowed to provide television services, something it has been unable to do until now.
It suggested legal reforms to strengthen the capacity of Mexico’s telecoms regulator Cofetel to protect competition in the market.
The CFC also said that the government and Cofetel should organise a spectrum auction for a third broadcasting network.
The commission said that these measures would produce a competitive market, as well as savings of US$6bn for Mexican fixed-line and mobile consumers every year.
The announcement came on the same day that a group of Mexican telcos reportedly called on the government to introduce “pro-competition” regulation and said they are not willing to pay interconnection charges to Telcel, the mobile operator controlled by America Movil.
El Economista reported that 25 companies had signed a document saying that they would not pay interconnection fees to Telcel.
These included Grupo Televisa, the conglomerate owned by Emilio Azcarraga, as well as telcos Marcatel, Nextel de Peru and Axtel-Avantel.
Axtel released a statement yesterday saying that it was in favour of pro-competition regulation, which was in the interest of 90 million Mexican consumers.
The company also said that it too was unwilling to pay an interconnection charge to Telcel.
Telcel came back with a strong response to these companies, which it said had a poor investment record in Mexico.
It said that the companies, which all lacked their own infrastructure, had joined in seeking to avoid paying for services provided by Telcel.
While a diverse range of telcos operate in Mexico, the telecoms market is still dominated by America Movil, the conglomerate owned by telecoms magnate Carlos Slim.
