America Movil pointed out that the resolution of the Federal Telecommunications Institute (IFT) regarding considering it preponderant, “does not consider the profound changes that have occurred more than 10 years after the imposition of asymmetric measures, nor is it based on a comprehensive evaluation of the existing competition in the different markets that make up the telecommunications sector.”
He added in a statement that these measures respond to requests from competitors not committed to the development of the sector in our country who seek to maintain subsidies and regulatory privileges from the IFT to supply the productive investments required to compete effectively.
América Móvil said that the notified resolution will be challenged in due course in accordance with applicable laws.
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The notified resolution determines to add and modify certain asymmetric measures, both in mobile services and in fixed services, the main ones being:
National Roaming: Continue providing the wholesale national roaming service for a period of 5 years, exclusively in those areas in which the requesting concessionaires do not have infrastructure or do not provide mobile service.
He specified that the service will be provided under tariff bases to be freely negotiated between the parties, except in cases of disagreement where the IFT will resolve the applicable rates.
End Users: (a) Deliver all the unlocked terminal equipment; (b) it is prohibited to establish mandatory deadlines or minimum terms in telecommunications service contracts (this prohibition is not applicable to so-called “corporate clients”); and (c) it is prohibited to condition and/or associate the granting of bonuses, discounts or benefits, in a cross or linked manner, between the contract for the sale of terminal equipment and the contract for the provision of telecommunications services.
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Distribution Channels: (a) Include certain non-doing obligations in the contracts entered into with the main third-party distribution points for the marketing of telecommunications services, terminal equipment, sim cards y airtime recharges; and (b) periodically deliver to the IFT various information related to said contracts.
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Interview: Understanding America Movil’s Stance on Telecom Regulation
Interviewer: Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Elena Martìnez, a telecommunications policy expert and professor at the University of Mexico City. We’re here to discuss America Movil’s recent criticisms of the Federal Telecommunications Institute’s resolution. Dr. Martìnez, thank you for joining us.
Dr. Martìnez: Thank you for having me! It’s a pleasure to be here.
Interviewer: Let’s get right into it. America Movil has taken a strong stance against the IFT’s resolution, arguing that it doesn’t reflect a decade’s worth of changes in the telecommunications landscape. What do you think are the major shifts that they might be referring to?
Dr. Martìnez: Great question. Over the past decade, we’ve seen rapid advancements in technology, an increase in competitors entering the market, and significant changes in consumer behavior. This has made the telecommunications sector much more competitive than it used to be, which challenges the notion that any one player, like America Movil, holds a preponderant position in the market.
Interviewer: That’s an interesting point. America Movil also claims that the resolution’s measures seem to favor competitors that aren’t committed to the sector’s development. In your view, how should regulatory bodies find the balance between supporting competition and ensuring investment in infrastructure?
Dr. Martìnez: It’s a delicate balancing act. Regulators must promote fair competition while also ensuring that there is enough incentive for investment in infrastructure. Measures like asymmetric regulation can help emerging players by leveling the playing field, but if these supports become permanent, they can disincentivize larger companies from investing in network improvements. The key is to periodically reassess these measures to reflect the current market dynamics.
Interviewer: You mentioned asymmetric measures. Can you elaborate on what they are and how they impact the market?
Dr. Martìnez: Sure! Asymmetric measures are regulations that impose different requirements on companies based on their market power. For instance, if a company is deemed to have significant power, it may face stricter obligations than smaller competitors. These measures can help prevent market abuse but can also create an environment where incumbents feel constrained. In America Movil’s case, they argue that these measures are now outdated given the competitive landscape.
Interviewer: America Movil has indicated that it plans to challenge the IFT’s resolution legally. What impact do you think this could have on the industry and consumers?
Dr. Martìnez: Legal challenges can create uncertainty in the market, which may stifle innovation and investment in the short term. However, if America Movil can successfully argue its case and bring about a reevaluation of the regulatory framework, it might lead to a more balanced approach that ultimately benefits consumers through better services and pricing.
Interviewer: how do you see the future of telecommunications in Mexico shaping up, especially in light of these developments?
Dr. Martìnez: The future is likely to be shaped by increased competition, technological advancements, and changing consumer expectations. If regulatory bodies can stay attuned to these changes and adjust their frameworks accordingly, we could see significant improvements in service quality and accessibility. Continuous dialogue between the players in the industry and the regulators will be key to this progress.
Interviewer: Thank you, Dr. Martìnez, for your insights. This has been a fascinating discussion about the interplay between regulation and competition in the telecommunications sector. We appreciate your time and expertise!
Dr. Martìnez: Thank you for having me! It’s an important conversation that will continue to evolve as the industry progresses.