Mexico. On November 28, the Mexican Congress approved a constitutional reform that eliminates the Federal Telecommunications Institute, IFT. In view of this decision, the entity spoke out. Here are his observations:
On November 28, the Senate of the Republic approved the Decree by which various provisions of the Political Constitution of the United Mexican States are reformed, added and repealed in terms of organic simplification, which determines the extinction of the Federal Telecommunications Institute (IFT) in terms of its transitory articles.
The approved Decree establishes an institutional model different from the current one, to regulate the telecommunications and broadcasting sectors, with a regulatory body in matters of economic competition without constitutional autonomy, and a design in which the powers currently held by the IFT would be divided among different government agencies.
This regulatory body has been emphatic, and we have made it public through various positions since the reform initiative was presented in February of this year, in which the evidence shows that the best institutional design for the regulation of these important sectors in our country has been constitutional autonomy, which is the result of historical social conquests. because it has been this model that today yields tangible results, which account for a significant evolution in the telecommunications and broadcasting industry, with direct benefits for Mexicans, for those of us who work and who have been at the center of our decisions at all times.
Combining the powers of sectoral regulation and economic competition in a convergent regulator with a comprehensive and coherent vision of the functioning of the markets has made it possible to implement effective regulation and a profound transformation of the telecommunications and broadcasting sectors. Today, more Mexicans have better services and at a lower price, in an environment of competition that would not have been achieved without an autonomous regulator. Suffice it to say that until before the creation of the IFT it had not been possible to establish asymmetric regulation for dominant agents in the sector.
At the IFT we consider it essential to draw attention to some aspects of this reform that could generate uncertainty and limit the proper application of sectoral and economic competition regulation in telecommunications and broadcasting matters, so they should be carefully analyzed in the secondary legislation to be issued, including:
- Technical impartiality, budgetary independence and collegiate decision-making are indispensable elements for the implementation of regulation and the application of competition policy in the telecommunications and broadcasting sectors, so a sectoral regulatory body is required, which guarantees technical and impartial decisions, which is particularly relevant in the current context, in which there are concessionaires with public participation that operate telecommunications networks and provide these services in the country, without compromising compliance with international agreements to which the Mexican State is subscribed.
- It is essential to consider the complex relationship between sectoral regulation and economic competition, segmenting regulatory powers can generate inconsistencies, inefficiencies and inadequate implementation of economic competition and regulation policies in the telecommunications and broadcasting sector.
- It is essential to maintain specialized human capital, the result of years of training and investment of resources for the training of public servants by the Mexican State, it is a fundamental pillar of any regulatory body. Highly specialized knowledge in technological, economic and legal disciplines is required. The results of the institutional work would not have been possible without the commitment and high specialization of the human talent that built an efficient and effective institution day by day. This technical and professional capacity of the IFT staff must be recognized and valued, so we call for their labor rights to be respected as established by the transitional regime of the Decree.
The IFT, as an organ of the Mexican State, reiterates its respect for the division of powers and, in compliance with its constitutional mandate, will continue to work with the same commitment that has characterized it since its creation, for the benefit of users of telecommunications services and audiences, attending to the needs of the sector so that prices and quality of services are offered in better conditions for the benefit of our country.
In terms of the transitional regime of the Decree, the IFT informs all interested parties that all procedures and procedures in progress will continue to be carried out, as well as those that are presented until the extinction materializes in accordance with the Reform.
This Institute expresses its full willingness to provide the elements that are required so that through secondary laws conditions can be generated that are for the benefit of the development of the sector, users and audiences of the country, and that savings can be achieved for consumers of telecommunications services in excess of 805 billion pesos. and a decrease in the prices of communications services of more than 33% that have been achieved throughout the eleven years of the IFT's existence.
