Mexico. The Institute of Telecommunications Law (IDET) regularly develops the IDET Traffic Light where it develops the review of the implementation of regulatory and public policy measures in the field of telecommunications, derived from the Constitutional Reform of 2013 and the publication of the Federal Law on Telecommunications and Broadcasting (LFTR) in 2014.
This monitoring exercise, 5 years after the entry into force of the Reform and 4 years after the implementation of the LFTR, monitors and identifies the evolution and progress of the goals foreseen by the legal and institutional framework, as well as the effects of the actions implemented in the market.
With this, IDET contributes to the analysis of the regulatory environment of the industry for the benefit of its effective compliance and in accordance with the established provisions.
A significant proportion of the goals established by the Reform have been achieved such as the elimination of long-distance charges, user protection measures in the mobile segment (unlocking of terminals, free balance consultation, portability in 24 hours), as well as competition measures in the broadcasting industry (obligations of Must-Carry and Must-Offer, non-exclusivity of events). Additionally, the Federal Telecommunications Institute (IFT) has carried out tenders, public consultations and review procedures to the competitive conditions in relevant markets that, however, have not been free of criticism in their application or in the fulfillment of the previously established deadlines.
In contrast, it is possible to identify regulatory challenges in the industry that must have a timely and timely follow-up, especially the provisions on economic competition, among which is the mandate of functional separation of Telmex-Telnor.
5 years after the beginning of the Telecommunications Reform, the regulatory framework of the sector has been the scene of substantial changes. In this period, the Institute managed to advance vital aspects for the sector, such as the tender for the 2.5GHz band and the imposition of new measures to guarantee effective access to wholesale services of the preponderant, which aims to detonate a competitive dynamism in markets such as mobile telephony and broadband.
However, fundamental issues remain pending for the optimal development of the industry. In particular, asymmetric measures of preponderance in telecommunications aim to create effective competition in the market. However, the Preponderant Economic Agent of Telecommunications (AEP-T, América Móvil) maintains a share, in terms of subscribers, of around 59% and a similar but rising ratio in revenues.
To this reality is that the imposition by the IFT of the functional separation of the AEP-T responds, in order to ensure the effectiveness of the disaggregation of the local network and the effective generation of agreements for wholesale services, remedies for the leveling of supply conditions between competitors. However, timely and timely monitoring of the conditions of effective competition and competitive configuration in specific markets and at the sectoral level, leading to levelling in terms of coverage and provision of services between competitors, is still required.
