Mexico. The Federal Institute of Telecommunications, IFT, expressed its appreciation for the decision of the Chamber of Deputies to reduce the amounts of rights in the 800 MHz band proposed in the initiative to reform the Federal Law on Rights presented by the Federal Executive.
The Commissioners of the Plenary of the IFT make a respectful call to the Senate of the Republic to consider reducing the amounts of the rights contained in articles 244-H, 244-I and 244-J of the initiative, which refer to frequency bands of the radio spectrum -provided for the deployment of internet and mobile telephony services of the fifth generation 5G-, The same as this regulatory body plans to tender in the coming years.
The amounts of the fees that the reform initiative establishes for the spectrum bands identified for the provision of 5G services are 186% higher than those proposed by the IFT for those bands and, if these high values are maintained, not only would the bidding processes planned for this portion of the radio spectrum be jeopardized, but the introduction of these technologies in the country could be irretrievably delayed, to the detriment of the entire population and national competitiveness.
Telecommunications have demonstrated their enormous value not only to inform and communicate, but as a fundamental tool to better mitigate the adverse effects of the health emergency that afflicts us and for a faster economic reactivation of the country. It is indisputable how important they are for millions of people today to work from home; make purchases of goods and services without having to leave their homes; have distance education; be kept duly informed, can make banking transactions from their mobile phones; and access truthful information and entertainment without putting their health at risk.
The fifth-generation technologies will facilitate the country's access to a comprehensive Digital Economy that benefits all Mexicans, as they mean a quantum leap over previous generations since they allow much higher speeds, latencies less than 1 millisecond and the ability to connect up to one million devices per square kilometer.
In addition, 5G networks are an enabler of the deployment of other technologies such as the Internet of Things (IoT), Artificial Intelligence or Big Data, which together have a transversal impact on aspects such as the automation of industrial processes, intelligent and autonomous transport, tele-education, tele-medicine, entertainment through virtual reality and augmented reality, e-government and e-commerce, among many other applications.
For these technologies to be deployed, large amounts of radio spectrum are required and must be made available in different frequency bands. 5G technologies, taken together, will require up to 10 times more spectrum than the total that has so far been allocated for mobile technologies in Mexico.
That is why the amount of the fees for the use of the radio spectrum that the concessionaires will have to pay annually is of the greatest relevance, especially considering that the level of the rights of the bands currently assigned is very high, with respect to their international average level. These high spectrum costs limit the ability of companies to invest, both in expanding coverage and in improving the quality of services, while discouraging participation in public spectrum bidding processes.
It is important to note that, in addition, these high costs can cause the opposite result than expected, that is, the State could see the collection reduced instead of increasing it, both due to the lack of participation in tenders and new spectrum returns by the current concessionaires.
In this regard, this Institute reiterates its total willingness to continue providing all the information and support required for this important decision that the Senate of the Republic will have to take in the coming days.
The IFT believes that "we have before us the enormous opportunity to ensure that telecommunications services reach the most remote populations, that more Mexicans manage to exercise their right to information and freedom of expression, that the financial inclusion of the population is facilitated and that the prospects of general well-being of all Mexicans are improved."
