He Federal Telecommunications Institute (IFT)in danger of extinction, expressed its “extreme concern” for the budget cut of more then 70% for the fiscal year 2025which puts at risk the operation and fulfillment of its constitutional obligations.
“We regret that the concerns and risks that we warned the federal deputies by institutional means, from the moment we became aware of the drastic reduction to the budgeted resources“, indicates a positioning of the autonomous body, which will merge with the Economic Competition body.
He explained that the reduction is such that, considering an accumulated inflation of 62% from January from 2014 to November 2024the 500 million pesos budget approved for 2025 is equivalent to less than 10% of the annual budget that the IFT had in 2014.
Regarding said budget reduction, the IFT stated that “the Decree of constitutional reform regarding organic simplification establishes that this Institute must continue to comply with its constitutional mandate until the 180 days counted from the entry into force of the secondary legislation referred to in the Tenth Transitional Article of the Decree itself.
During this period, the IFT asserted that it must exercise its functions as the autonomous body in charge of regulating the telecommunications and broadcastingand also authority in matters of economic competition for both sectors, so the allocated budget resources are insufficient to fulfill said responsibilities.
Not counting on him essential minimum budget places this regulatory body “in a critical situation, as the constitutional mandates and its own operation are seriously compromised, which is also contained in express commitments of our country in international treaties, in particular the T-MEC. All of this, to the detriment of the efficient development of the telecommunications and broadcasting sectors and, therefore, of the users of the services and the audiences.”
At the same time, the reform, he indicated, established that “it is mandatory to prioritize the labor rights of the public servants who make up this institution, which would be at risk of meeting the assigned budget.”
Another effect of the cut is “to stop carrying out significant projects that this Institute has implemented in favor of the users,the comunities and indigenous peoplesas well as digital inclusion.”
The lack of budget will eliminate the National Survey on Availability and Use of Information Technologieswhich is carried out together with the INEGI but it is indeed financed by the IFT, which will lack a diagnosis of the evolution in the use of various technologies by the population in our country, useful for the design of public policies aimed at closing the digital divide.
Another of the eliminated programs is it workedthe program through which Institute personnel promote the obtaining of radio broadcasting and telecommunications concessions in indigenous and Afro-Mexican peoples and communities, “offering guidance and support for the procedures and implementation of these projects that contribute to preserving their language and customs , with which the possibility of more of these communities having their own radio medium will be reduced.”
Also committed is the “granting of the 1% of the social communication and advertising budget to community, indigenous and Afro-Mexican radio stations, in accordance with the provisions of article 89, section VII of the Federal Telecommunications and Broadcasting Lawgiven that the budget for institutional advertising will no longer be available.”
Another area affected is “maintainance both National Infrastructure Information System (SNII) like Radio Spectrum Management System (SIAER)which will affect infrastructure and spectrum deployment planning actions.”
The IFT called for consideration of the additional resource allocation during fiscal year 2025 that allow it to attend to and fulfill its substantive tasks, and comply with the provisions of the constitutional reform approved in terms of respecting the labor rights of its staff, while the Institute continues in operation and the human capital is transferred to the new government entities that will assume its functions.
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What are the potential consequences of budget cuts on the effectiveness of Mexico’s Federal Telecommunications Institute?
Time.news interview: The Future of Mexico’s Federal Telecommunications Institute
Interviewer (Editor of Time.news): Welcome to Time.news. Today, we have the privilege of speaking with Dr. Alejandro Méndez, an expert in telecommunications regulation and policy. Dr. Méndez, thank you for joining us.
Dr. Alejandro Méndez: Thank you for having me. It’s a pleasure to be here.
Interviewer: Let’s dive right in. The Federal Telecommunications Institute (IFT) has recently expressed serious concerns regarding a drastic budget cut of over 70% for the fiscal year 2025. Can you tell us what this means for the IFT and its role?
Dr. Méndez: Certainly. The IFT serves as an essential regulatory body in Mexico, ensuring fair competition and overseeing telecommunications and broadcasting sectors. This budget cut not only jeopardizes its operational capabilities but also undermines its constitutional obligations. With such a significant reduction, there’s a real risk that the IFT won’t be able to enforce regulations or promote competition effectively.
Interviewer: You mentioned the potential impacts on operational capabilities. What specific functions of the IFT could be affected by this budget decrease?
Dr. Méndez: The IFT is responsible for a range of critical functions including spectrum management, consumer protection, and ensuring market competitiveness. A 70% budget cut essentially limits personnel,resources for research and growth,and public outreach initiatives. This could lead to delays in regulatory decisions, reduced oversight on monopolistic practices, and possibly higher prices and lower service quality for consumers.
Interviewer: The statement from the IFT indicated that this budget is less than 10% of what they had back in 2014, considering inflation rates. How concerning is this in the broader context of governance and public interest?
Dr. Méndez: It’s extremely concerning. When you adjust for inflation, a 500 million pesos budget is inadequate for a body tasked with such crucial responsibilities. This drastic scaling back hits at the heart of governance.It essentially signals a diminished commitment to protecting consumer interests and fostering fair competition. In the long run, this can lead to a weakened telecommunications infrastructure, impacting not just consumers but also businesses and the economy as a whole.
Interviewer: There are discussions regarding the merging of the IFT with the Economic Competition body.How would this merger influence the future landscape of telecommunications regulation in Mexico?
Dr. Méndez: Merging the IFT with the Economic Competition body might be seen as a way to streamline regulatory functions, but it raises several concerns. Firstly, the unique expertise of the IFT in telecommunications could be diluted. Secondly, the merger may lead to conflict of interest issues, as competition policy often needs to navigate complex industry specifics that telecommunications regulation uniquely requires. Ultimately, this could lead to a less nuanced approach to both sectors.
interviewer: The IFT has stated that they intend to abide by their constitutional mandates despite the impending budget cuts and potential merger.How feasible is this commitment in the face of such significant financial constraints?
Dr. Méndez: While the IFT’s intention to uphold its mandates is commendable, the reality is that constitutional obligations require adequate resources for enforcement. If the funding is slashed, the IFT may struggle to fulfill its duties effectively. This creates a critical gap in regulatory oversight which, over time, could lead to regulatory failures, harming consumer welfare and economic development.
Interviewer: In your view, what steps should be taken to address this budget crisis and protect the IFT’s mandate?
Dr. Méndez: Immediate dialog with lawmakers is essential to stress the importance of a well-funded regulatory body. There should be calls for a reassessment of the budget cuts, along with public awareness campaigns to rally consumer support for the IFT. Long-term, establishing a dedicated funding mechanism that ensures the IFT can operate independently of the vicissitudes of annual budgeting would be a prudent approach.
Interviewer: Thank you, Dr.Méndez,for your valuable insights on this pressing issue. It’s clear that the future of telecommunications in Mexico hangs in the balance.
Dr. Méndez: Thank you for having me. It’s a critical time for the IFT,and I appreciate the opportunity to discuss it.
Interviewer: And thank you to our audience for tuning into Time.news. We’ll continue to monitor this situation closely. Stay informed!