Mexico’s senate has voted in favour of the telecommunications, radio and television (TRT) reform bill by a margin of 118 to 3. The measures – pending further approval by other government bodies – could mark the beginning of the end of Carlos Slim’s…
Mexico’s senate has voted in favour of the telecommunications, radio and television (TRT) reform bill by a margin of 118 to 3. The measures – pending further approval by other government bodies – could mark the beginning of the end of Carlos Slim’s monopoly on telecoms operations in the country.
The bill was passed with minor amendments. Differing from the draft, the final legislation allows operators to defer fines imposed by competition regulator Cofeco while an appeal is pending, reports said.
However telcos will not be able to appeal decisions made by the proposed new beefed-up telecoms regulator, the FIT, which can also fine and order asset divestitures.
This and other changes need to be confirmed by the lower house, which already passed the bill in March. After that it requires approval from state senators. Given that the bill is bipartisan and built on consensus it is expected to clear that hurdle. After that point the bill would be drawn up into law.
The TRT reform bill aims to increase competition in telecoms by creating a stronger regulator, imposing asymmetrical regulation, liberalising foreign investment laws and potentially breaking-up the incumbent. It also intended to curb the litigious nature of Mexico’s telecoms sector, which has stalled the market developing progressively following privatisation.
