After the approval of the elimination of the IFT, in January 2025 the ATDT and the SICT assumed their functions.
Ernesto Piedras*
The recent and ongoing reconfiguration of the institutional corpus of telecommunications in Mexico, after the upcoming extinction of the Federal Telecommunications Institute (IFT), is causing a transition towards a fragmented model between the Ministry of Infrastructure, Communications and Transport (SICT), the Agency for Digital Transformation and Telecommunications (ATDT) and a new economic competition body.
This change, the result of the constitutional reform in terms of organic simplification and the modifications to the Organic Law of the Federal Public Administration (LOAPF), promises to digitally transform our country, but it also poses serious structural and operational challenges.
New Regulatory Panorama. The recently approved constitutional reform establishes a new institutional framework that redistributes the functions previously concentrated in the IFT.
From January 2025, the ATDT will assume responsibility for public policy on telecommunications, while the SICT will be in charge of tenders and supervision of the radio spectrum, as well as broadcasting and telecommunications concessions.
This diffuse approach to powers could generate uncertainty and increase costs among regulated agents, who will face a "double or triple window" to carry out their procedures and comply with their regulatory obligations.
Challenges of Institutional Redesign. One of the main risks of this redesign is the potential lack of coordination between the new entities.
Competition conflicts and duplication of efforts could become additional barriers, increasing administrative costs and reducing the operational efficiency of the sector.
Another worrying aspect of this transition is the potential loss of specialized human capital. The IFT, during its existence, has trained and accumulated a considerable amount of experience and technical knowledge that results in a sine qua non condition for effective regulation.
A lack of continuity of competent staff could negatively impact the ability of new entities to address industry challenges.
Budget: Contrasts and Challenges. The Expenditure Budget of the Federation (PEF) for 2025 points to a drastic reduction of 70.2% in the resources allocated to the IFT, leaving the regulatory body with $500 million pesos (mdp) to conclude its operations and liquidate its personnel.
In contrast, the ATDT is inaugurated with a robust budget of $3,010 million pesos, which emphasizes the
The Government's intention to centralise functions related to digital transformation and technological inclusion.
However, the redistribution of functions also falls on existing entities, such as the SICT, which will receive a budget increase of 4.8% to assume critical responsibilities in telecommunications and broadcasting. This increase could prove insufficient in the face of growing regulatory and operational demands.
Towards a Solid Secondary Legislation. The eventual success of this institutional restructuring would depend to a large extent on secondary legislation that is issued to give way to the new model.
It is imperative, then, that this legislation be comprehensive and supported by a thoughtful technical analysis. Otherwise, there is a risk of perpetuating uncertainty and making it difficult to transition to a more efficient system.
While institutional redesign may offer an opportunity to address key issues such as digital transformation, cybersecurity and technological inclusion, it also introduces significant risks that could compromise the development of the sector. The fragmentation of skills, the lack of coordination and the loss of human capital are challenges that must be addressed urgently.
At a time when connectivity and innovation are essential for economic and social growth, the future of telecommunications in Mexico is at stake. The key question is whether the new model will manage to meet modernization expectations or if, on the contrary, it will represent a setback in the progress made in the last decade.
*Ernesto Piedras is CEO & General Director of The Competitive Intelligence Unit, The Ciu.
