Federal Telecommunications Institute

The Federal Telecommunications Institute (abbreviated as IFT and incorrectly referred as IFETEL) is an independent government agency of Mexico charged with the regulation of telecommunications and broadcasting services. It was formed on September 10, 2013, as part of larger reforms to Mexican telecom regulations, and replaced the Federal Telecommunications Commission (Cofetel).

The current President of the IFT is Gabriel Oswaldo Contreras Saldívar.

History

On August 8, 1996, President Ernesto Zedillo created Cofetel, which originally was based in the tower of the Secretariat of Communications and Transportation.

In 2013, President Enrique Peña Nieto created the IFT to replace Cofetel as part of the telecommunications reform package of the Pacto por México. The IFT is an autonomous federal agency that is responsible for the regulation of the use of spectrum, telecommunications and broadcasting networks and offerings, and access to infrastructure. IFT also regulates the awarding of concessions and permits for broadcast stations and promotes and protects competition in telecommunications.

Through an agreement with PROFECO, the IFT also handles user comments and complaints for communications services.

Organization

The IFT is headed by a board of seven commissioners, including a Chair. They are each nominated by the President and confirmed by the Senate.

The sitting commissioners are:

• Gabriel Oswaldo Contreras Saldívar (Chairman)
• Adriana Sofía Labardini Inzunza
• María Elena Estavillo Flores
• Mario Germán Fromow Rangel
• Adolfo Cuevas Teja
• Ernesto Estrada González
• Javier Juárez Mojica

Mexican Telecommunications Reform 2015-16 (RED COMPARTIDA)

Red Compartida (Red Shared) is the official name of the network that will result from the Mexican Government’s 2014-2016 effort to overhaul its telecommunications industry by introducing competition into the marketplace. If successful, the Red Compartida network will be the first fully wholesale mobile network deployed anywhere in the world.

Background

America Movil, the company owned by Carlos Slim, the world’s richest man, has long held a monopoly in the telecommunications marketplace in Mexico. In July 2014, it was reported in Forbes Magazine that Slim controlled 80% of Mexico’s landline market and 70% of the wireless market.^[1] According to the Los Angeles Times, Mexican consumers have long been complaining at the “high costs and spotty service” provided by Slim’s companies.^[2] Over the years, Slim has been accused of engaging in anti-competitive practices – for example, using his control over the telecommunications infrastructure to charge prohibitive connection fees to competitors.^[3]

On July 9, 2014, the Mexican Government passed wide-ranging telecommunications reforms, designed to abolish long-distance phone charges, make it easier for customers to switch phone companies, and broaden access to free-to-air television stations.^[4] In response, Slim announced that he would reduce his market share substantially, and announced plans to sell off America Movil assets worth up to 7 billion dollars.

Under the new laws, the Mexican telecommunications regulator was required to establish a wholesale-only wireless network — a “carrier’s carrier” that will sell mobile-network capacity to all comers.^[5] In 2015, the regulator announced the “Red Compartida” initiative.

Wholesale Network

The Red Compartida network will be “wholesale only”. This means that the company which builds and operates the network will not be involved in providing mobile service to consumers. Instead, the operator will provide access to the network to mobile operators, who will in turn use the network capacity to provide a consumer mobile product. Access to the network for these operators will be sold to the highest bidder in regular auctions.

The advantage of a wholesale only network is that many new entrants can enter the Mexican consumer market at once. The cost of building a mobile network is prohibitive and requires billions of dollars in capital outlay. By providing the infrastructure through a wholesale only network, the cost of offering a new consumer service to Mexican customers will be significantly reduced.

The Mexican Government expects the construction of the wholesale network, and the resultant entry of new providers to the Mexican market to generate 13 billion dollars of Foreign Direct Investment over a three year period.^[6]

International Reaction

The Red Compartida project received international recognition at the Mobile World Congress in Barcelona, Spain, in 2016. An award was given to Mexico for its efforts in the area of “Governmental Leadership.” According to Monica Aspe, Mexico’s sub-secretary for telecommunications and transport, receipt of recognition in this area was a landmark telecommunications development in her country. She explained that, in the past, “European countries and China were almost solely the recipients of this award.”^[7]

On the other hand, the giant US provider AT&T, which has in recent years invested 4.4 billion dollars in Mexico, was reported to be “particularly discomfited” with the project, especially since as an existing operator, they would be barred from taking part.^[8]

Antitrust Requirements

The Mexican Government requires that any bidder planning to construct the Red Compartida Network demonstrate that they have no ties whatever to any mobile service provider already operating in Mexico.

Timetable

An announcement awarding the project to the successful bidder is expected in October 2016.

Potential Bidders

Irish-American Firm Rivada Networks has announced that it will bid to build the Red Compartida network. Several other companies are believed to be considering bids.

References

External links

• Official website