Mexico. A topic discussed and analyzed at the beginning of the year is the convenience and need to have a specialized and autonomous regulatory body for the convergent sector of telecommunications and broadcasting in Mexico, the Federal Institute of Telecommunications, IFT.
Nature of a Specialized Regulator for Telecoms. This sector was originally characterized historically and internationally by tending towards an extreme concentration that, in most cases, constituted public or private monopolies. Technological advancement, accompanied by legal, regulatory and market learning, led countries to seek to create effective competition in their operation and, with it, the optimal provision of services.
Its establishment also arises to ensure public welfare, quality of services, monitoring compliance with obligations, technical standards of quality and safety, promotion of investment in infrastructure, as well as resolution of disputes between economic agents, among other functions.
Strengthening, Independence and Complementarity with Other State Organs. The international experience is oriented to the strengthening, technical specialization and independence of regulators, with respect to other State entities. Prominent examples are found in the Federal Communications Commission (FCC) in the US, Ofcom in the UK or the Communications Regulatory Commission (CRC) in Colombia.
These bodies are integrated into a constitutional framework of complementarity between decentralized agencies, secretaries of state, the Judiciary and other State entities, to optimize the provision of services, in terms of availability, affordability, diversity and quality.
Since its creation in 2013, the IFT has devoted efforts to effective competition, efficient allocation of radio spectrum, investment promotion, universal coverage, affordable availability, optimal quality of services, among other obligations under its responsibility. Compliance with these constitutional mandates has generated tangible benefits for users, service providers, as well as the nation.
Cost to the Treasury and Systemic Value of the IFT. In the current year, the management of the IFT, in accordance with the Revenue Law of the Federation for Fiscal Year 2021, projects that the Mexican State will receive $6,291.4 million pesos (mdp) for collection for the provision of services of public telecommunications networks. Additionally, revenues are calculated for the IFT of $18,157.5 million pesos corresponding to the collection of fees for the use, enjoyment, exploitation or exploitation of telecommunications services and $26.2 million pesos for services provided directly by the regulator.
Thus, as a whole, perceptions will be generated for the State for $24,475.1 million pesos derived from the fulfillment of the multiple functions of the regulator.
In contrast, the Expenditure Budget of the Federation estimates an expenditure of $1,510 million pesos corresponding to the management of the Institute.
This cost only represents a ratio of 6.2% of the total amount of resources that the State will receive for the implementation of regulatory policy and administration of the radio spectrum by the IFT.
Thus, the State would no longer receive, due to the disappearance of the IFT, 16.2 times more income that today corresponds to the specialized work of a regulator that has proven to be effective in promoting investments, increasing the availability of spectral resources, reducing prices and detonating access and consumption of telecommunications among the population, as well as recovering social welfare attributable to lack of competition and high prices of services.
Text written by Ernesto Piedras of The Competitive Intelligence Unit.
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