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OECD Review of Telecommunication Policy and Regulation in Mexico

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OECD Review of Telecommunication Policy and Regulation in Mexico OECD Review of Telecommunication Policy and Regulation in Mexico Contents Executive summary: An overall assessment OECD Review of Chapter 1. The telecommunication sector in Mexico • The national context for telecommunications policies Telecommunication Policy • Telecommunication market participants, market performance and the regulatory regime • Development of competition and Regulation in Mexico Chapter 2. Regulatory structures and their reform • Regulatory institutions • The regulatory regime • Regulations and related policy instruments in the telecommunication sector • Regulation of interconnection • Price regulation OECD Review of Telecommunication Policy and Regulation in Mexico • Competition policy • Convergence in communication markets • Next generation access • Quality of service • Resource issues (spectrum, infrastructure sharing) • Universal service • International aspects • Consumer protection and empowerment • Streamlining regulation and application of competition principles Chapter 3. Conclusions and recommendations Annex A. Regulatory decisions and the judicial process (2005-10) Annex B. Ofcom vs. Cofetel: Competencies in telecommunications and spectrum policy Annex C. Estimation of loss in consumer surplus resulting from excessive pricing Please cite this publication as: OECD (2012), OECD Review of Telecommunication Policy and Regulation in Mexico, OECD Publishing. http://dx.doi.org/10.1787/9789264060111-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org, and do not hesitate to contact us for more information. ISBN 978-92-64-060104 93 2011 06 1 P -:HSTCQE=U[UVUY: OECD Review of Telecommunication Policy and Regulation in Mexico This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2012), OECD Review of Telecommunication Policy and Regulation in Mexico, OECD Publishing. http://dx.doi.org/10.1787/9789264060111-en ISBN 978-92-64-06010-4 (print) ISBN 978-92-64-06011-1 (PDF) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: Cover © Shutterstock/Oleg Yarko [ site: Yarko.Tv ] Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. Revised version January 2012 Details of revisions available at: http://www.oecd.org/dataoecd/13/37/49482816.pdf © OECD 2012 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD – 3 Foreword This study was carried out by the OECD Directorate for Science, Technology and Industry (DSTI) under the auspices of the Committee for Information, Computer and Communications Policy (ICCP Committee). It was requested by the Government of Mexico, at the behest of the Federal Telecommunications Commission (Comisión Federal de Telecomunicaciones, COFETEL), through the Mexican Ministry of Transport and Communications (Secretaría de Comunicaciones y Transportes, SCT), both being in charge of representing Mexico at the ICCP Committee. The OECD review of telecommunication policy and regulation draws on responses by the Mexican authorities to a questionnaire and on the results of an extensive series of interviews with major communication stakeholders during a fact-finding mission in Mexico. The report was peer reviewed by the ICCP Committee on 27 October 2011, with Dr. Mónica Ariño (Ofcom, United Kingdom) and Mr. François Lions (Arcep, France) as the lead peer reviewers. It was finalised in early November 2011 and reflects developments up to that time. The review was drafted by Mr. Dimitri Ypsilanti, Head of the Information, Communications and Consumer Policy Division (ICCP Division) within DSTI, and Mr. Agustín Díaz-Pinés, economist at the ICCP division, with the assistance of Professor Patrick Xavier, Curtin Business School, and contributions from Professor Martin Cave, London School of Economics, and Mr. Tony Shortall, Director, Telage. The review was made possible by the support from the SCT and Cofetel. The OECD Secretariat wishes to thank, in particular, Minister Dionisio Pérez-Jácome Friscione, Minister of Transport and Communications and Undersecretary Héctor Olavarría Tapia, Undersecretary for Telecommunications in the SCT, and President Mony de Swaan Adati, President of Cofetel and their staff for organising the mission and interviews and providing additional factual information throughout the review process. The OECD also wishes to acknowledge the assistance of Ambassador Agustín García-López Loaeza and Minister Sergio Lozoya Granier, from the OECD Mexican Delegation for their support in the review process. OECD REVIEW OF TELECOMMUNICATION POLICY AND REGULATION IN MEXICO – © OECD 2012 TABLE OF CONTENTS – 5 Table of contents Executive summary: An overall assessment............................................................................................ 9 Introduction............................................................................................................................................. 9 Shortcomings and challenges................................................................................................................ 11 Chapter 1. The telecommunication sector in Mexico........................................................................... 15 1.1. Introduction.................................................................................................................................... 16 1.2. The national context for telecommunications policies................................................................... 17 1.3. Telecommunication market participants, market performance and the regulatory regime............18 1.4. Development of competition.......................................................................................................... 25 Notes ..................................................................................................................................................... 38 References............................................................................................................................................. 39 Chapter 2. Regulatory structures and their reform............................................................................. 41 2.1. Regulatory institutions................................................................................................................... 44 2.2. The regulatory regime.................................................................................................................... 50 2.3. Regulations and related policy instruments in the telecommunication sector ...............................58 2.4. Regulation of interconnection........................................................................................................ 65 2.5. Price regulation.............................................................................................................................. 75 2.6. Competition policy ........................................................................................................................ 79 2.7. Convergence in communication markets.......................................................................................82 2.8. Next generation access................................................................................................................... 88 2.9. Quality of service........................................................................................................................... 92 2.10. Resource issues (spectrum, infrastructure sharing)...................................................................... 94 2.11. Universal service........................................................................................................................ 102 2.12. International aspects................................................................................................................... 104 2.13. Consumer protection and empowerment ................................................................................... 106 2.14. Streamlining regulation and application of competition principles........................................... 108 Notes ..................................................................................................................................................
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