Mexico. The Federal Institute of Telecommunications, IFT, clarified the 10 key points that must be taken into account to better understand the ongoing tender of the two new television networks that the country will have
1.- What characteristics will the two new television channels that are being tendered have?
Each chain will have the capacity to potentially cover 92% of the country's population. Each of them consists of up to 123 Transmission Channels, each consisting of a 6 MHz channel (channels of the UHF band numbered between 14 and 51) and a circular coverage area, defined by the geographical coordinates of its center and a radius in kilometers. Although the coverage areas of each Transmission Channel are not necessarily the same as those of the established concessionaires, it is possible to have coverage similar to what they currently offer.
2.- Those interested in the tender, should they make a proposal that necessarily includes the 123 Transmission Channels?
No. The Bidding Rules define the criteria for a particular selection of Transmission Channels made by a participant to be considered as a National Chain: coverage must be provided in at least 30% of the population of each of the states.
3.- Can the frequencies that are tendered be used for television services?
analogical?
No. By constitutional mandate, the tender is for digital broadcast television (digital terrestrial television or DTT), that is, open television of free reception, but with digital quality in image and sound.
4.- Can foreign companies participate in the tender?
For the first time in Mexico, it is legally possible for foreign investment in broadcasting concessionaires to reach up to 49% of their capital. However, it applies a condition of reciprocity with respect to the country of origin of the investments.
5.- Can companies or groups that today already offer broadcast television services in Mexico participate?
The constitutional reform in the field of telecommunications establishes that concessionaires or groups related to commercial, organizational, economic or legal links that, at the date of promulgation of the reform, had accumulated concessions to provide broadcasting services of 12 MHz of radio spectrum or more in any area of geographical coverage may not participate. The Institute conducted the necessary assessments to ensure that those who wish to participate comply with this restriction.
6.- Is it possible for the same company to obtain the two television channels as a result of this tender?
Yes. The bidding rules provide that the same person or group may participate for one or both chains.
7.- What will be the criteria to determine the winner or winners of the tender?
For each of their proposals, each interested party had to submit, among other requirements, an economic offer and an offer of coverage.
Interested parties who have duly complied with the requirements for participation in the tender shall obtain proof of participation. The determination of the winner or winners is based on the evaluation of a formula that weighs the economic and coverage offers of each participant, in accordance with the principles of efficient operation of the markets and maximum national coverage of services, to which the constitutional reform refers when talking about the tender of broadcast television channels. Appendix B. "Guidelines for the Evaluation of Bids" of the Bidding Rules describes in detail how the economic and coverage bids of the participants will be evaluated.
The proposals will be evaluated in four phases:
- First phase. Determination of validity of proposals. For an economic offer to be valid, it must be greater than or equal to the Minimum Reference Value determined by the Institute (830 million pesos 00/100 M.N. for each chain) in order to award the tender.
- Playoff. Evaluation of proposals by a points system. The validated economic and coverage offers will enter a formula that weights them, giving a weight of 60% to the coverage offer and one of 40% to the economic one.
- Third phase. Comparison of proposals. The score corresponding to the joint proposals by the two chains will be the sum of the scores assigned to each of the individual proposals. The one with the highest score obtained will be chosen as a finalist joint proposal. In the case of individual proposals by a single chain, the two with the highest score will be chosen as individual finalist proposals.
- Fourth phase. Selection of winning bids.
8.- How many companies requested opinions on economic competition and how many submitted their coverage and economic proposals?
The IFT received eight requests for opinions on economic competition. All were given a favorable opinion, so they were able to submit their proposals for coverage and economic, and other requirements to participate. On November 20, 2014, the Institute received coverage and economic proposals from three bidders: 1) Centro de Información Nacional de Estudios Tepeyac, S.A. de C.V. 2) Cadena Tres I, S.A de C.V. and 3) Grupo Radio Centro, S.A.B. de C.V.
9.- What are the next stages of the process?
In the bidding rules approved by the IFT Plenary, specific dates were established to carry out this process. Here are some of them.
No later than February 26 Delivery to the IFT, where appropriate, of the favorable opinion that the interested parties have obtained from the National Commission of Foreign Investments
- March 5 to 9 Notification of Certificates of Participation or, where appropriate, of the office of non-compliance with the requirements
- March 5 to 9 Release of guarantees of seriousness to interested parties who did not obtain proof of participation and did not incur any cause of disqualification
- March 11 Opening of envelopes with the offers of coverage and economic and comparison
- preliminary
- No later than March 19, the Plenary of the Institute issues a ruling
10.- What validity and characteristics will the concession titles have? When will they start trading?
The concession titles of radio spectrum for commercial use of the national chains that are tendered will have a validity of 20 years, counted from the date of their granting, which may be extended in the terms established by law.
They will also be granted a single concession, which will allow them to provide all kinds of telecommunications and broadcasting services that are technically feasible.
Term Level of compliance: three years In all the mandatory localities to serve as the coverage areas in which at least 30% of the population of all the federative entities of the country is included.
Five years All the mandatory localities to be served related to all the coverage areas that make up the national chain
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