NORTH AMERICAN BROADCASTERS ASSOCIATION | MARCH 2014 www.nabanet.com ► New Communications New Communications Legislation in Mexico Legislation in Mexico Sergio Sarmiento, TV Azteca Secretariat of Communications and Transportation ► Director-General’s Report (SCT). This independence is welcome in principle, ► NAB’s Chris Ornelas’ Keynote Mexico has a new package of broadcasting and although the IFT has acquired enormous and worri- to the 2014 NABA AGM Event telecommunications rules. Changes promulgated in some powers by virtue of the limitations imposed ► Summary of the Fifth ITU-R 2013 have touched only the constitution so far — on the regulated to seek redress from its decisions JTG 4-5-6-7 Congress is still working on secondary laws and through the courts. ► NABA 2014 AGM Event regulations. But this does not mean that the new Memories rules, which are already being applied, are not de- New telecoms and broadcast concessions are to be ► NABA Welcomes Bell Media tailed. These amendments on telecommunications granted by the IFT and not by the government as a New Full Member and broadcasting are longer than the entire constitu- through the SCT. People who have worked in the ► Launch of JTF on File tion of the United States. industry over the previous Formats and Interoperability three years, however, have ► National Academy of The reason why the gov- been banned from serving Engineering Elects ernment and the legislators at the IFT. This decision, Robert Briskman have put such excruciating which aims to prevent un- ► NABA Joins CITEL detail in the constitution is due influence of private ► NABA Members & Issues to prevent media and tele- companies at the IFT, in the News coms from seeking am- makes it more difficult for ► Looking Ahead — paros — i.e., appeals to people with industry ex- Calendar of Events federal courts that allow perience from serving as firms and individuals to regulators. It largely leaves seek protection from un- the responsibility of regu- NABAcaster is published by and for members constitutional actions by lating the industry to aca- and friends of the North American the government. Mexican demics and career govern- Broadcasters Association ( NABA ) jurisprudence states that a constitutional article can- ment officials whose viewpoints are often inimical not be ruled as unconstitutional by any court (even to the private sector. P.O. Box 500, Station A Toronto, ON M5W 1E6 if it contradicts other parts of the constitution). Canada The new constitutional text creates new “rights.” Tel.: +1 416-598-9877 The amparo law was actually amended before the Article 6, for example, now says: “The state will Fax: +1 416-598-9774 new telecommunications legislation in order to pre- guarantee the right of access to information and Email: [email protected] vent firms in industries requiring government con- communication technologies, as well as to broad- President cessions — broadcasting, telecoms, banks, airlines cast and telecommunication services, including Robert J. Ross and others — from getting provisional injunctions wide-band and internet. To accomplish this, the Director General from the courts. Although the government claims state will establish conditions of effective competi- Michael McEwen Editor these rules are necessary to prevent endless litiga- tion in these services.” Jason Paris tion by broadcasters and telecoms, Mexico’s Legal Staff Bar (Barra Mexicana Colegio de Abogados) has The legislation is greatly expanding the powers of Anh Ngo questioned the weakening of amparo legislation government. “The state will guarantee the people’s Roxanne Riess Vineet Mathur and has said that it is improper to have different integration to the information and knowledge soci- laws for different industries. ety through a policy of universal digital inclusion with annual and six-year plans.” Critics claim that NABA-LC MEETING The new constitutional rules have created a new by creating a “right” to wide-band internet, and by regulator, the Federal Institute of Telecommunica- promoting a greater government intervention with th March 26 tions (IFT), which replaces the Federal Telecom- six-year plans patterned after the Soviet Union’s Teleconference munications Commission (Cofetel). The IFT is an five-year economic plans, a less efficient market autonomous body while Cofetel was a branch of the Continued on next page... NABACASTER | MARCH 2014 will emerge that will make it more difficult fixed telephone lines (through Teléfonos de a controlling interest to Carso (even though to fulfill the aim of providing better broad- México and Telnor). Its command of the this is precluded by Carso’s telephone con- cast and telecommunication services to all wireless and DSL internet markets is almost cessions), has begun to retransmit program- Mexicans. as high. Grupo Televisa has a 70% share of ming by both Televisa and TV Azteca with- the over-the-air television market and some out permission or payment. Both Televisa Mexico’s new constitutional rules offer 60% of pay television (through Sky, a di- and TV Azteca have protested what they very specific details that will not be found rect-to-home satellite service, and Cable- claim is a violation of their intellectual in any constitution in the world. They pro- visión and other regional cable companies). property rights. The IFT has ordered the hibit, for example, “broadcasting advertis- One of the ways in which the new legisla- retransmission to be continued, under the ing or propaganda presented as journalistic tion will attempt to reduce concentration in new constitutional rules for must carry and or news information.” It is not clear, how- these markets is though asymmetrical regu- must offer of over- the-air television while ever, who will decide whether a piece of lation of dominant players. it defines permanent rules and waits for the information is newsworthy, advertising or promulgation of secondary legislation. propaganda, nor what criteria will be used The new legislation creates new courts spe- Televisa claims that it will lose 1.4 billion to make the decision. The potential for cen- cialized in broadcasting, telecommunica- pesos annually (over US $100 million) be- sorship is enormous. tions and economic competition. The idea cause of lost income from the sale of pro- is to prevent complex technical issues being gramming to pay television companies. The legislation orders the government to handled by judges with no knowledge on build a new national telecommunications the subject. It also calls on the government The main purpose of the reform is to gener- network to provide wholesale services. to open bids for two new national, digital ate more competition in telecoms and This network will compete with Grupo television networks and to create a govern- broadcasting. This is, in my opinion, a Carso’s, which now has a near monopoly in ment-owned and run network. worthy objective. It is difficult to say at the market. Construction must start before this point, however, whether the new rules the end of 2014 and the system must be Many controversial issues still need to be will actually produce this result. The secon- operational by 2018. The new rules also solved by secondary legislation and the new dary legislation and the day-to-day decision call on the government to “rescue” the 700 regulator. At the time of this writing, Con- by the new regulators still have to solve Megahertz band, to be vacated by television gress has still not enacted the necessary many issues. What is clear is that the after the transition to digital broadcasting secondary legislation. The IFT is already Mexican government is assuming greater already in progress, and make it available operating. The Supreme Court, in fact, has powers which can be used for good, to pro- for wireless internet services. ordered it to start applying constitutional mote greater competition that will give bet- rules even in the absence of secondary leg- ter and lower priced services to Mexicans, There is an attempt to promote greater com- islation. There is likely to be a long and or simply to allow politicians to achieve a petition in fields traditionally dominated by difficult adjustment period because of the greater and more abusive control of the just one player. Grupo Carso, owned by lack of clarity in the rules. markets and of broadcasting. ∎ Carlos Slim, the second richest man in the ————————————————— world according to Forbes magazine, con- Dish Mexico, a satellite company that has a Sergio Sarmiento is a journalist. He serves on trols 70% of the cellular phone business commercial agreement with Slim’s Grupo TV Azteca’s Board of Editors and as a Director (through América Móvil) and 80% of the Carso, and that has signed a contract to sell of NABA. His views do not necessarily reflect either organization’s positions. Bob Ross, CBS’ SVP, East On February 11th, our four Standing Com- Director-General’s Report Coast Operations, is our new mittees assessed the past year and created Michael McEwen, NABA President with Richard Friedel, their agendas for the year ahead. The Tech- The past few weeks FOX Networks’ EVP & GM, Engineering nical Committee under John Lee’s guidance have been a VERY & Operations and John Lee, CBC/Radio- have a number of matters on hand including busy time for NABA Canada’s Executive Director, Media Tech- three major agenda items this year; spec- with our Annual nology Services, serving as NABA Vice- trum and interference issues along with General Meeting Presidents. They are all outstanding leaders preparation for WRC-15, File Transfer and (AGM) Event in in our industry and I’m proud to be with the Media Interoperability (by ensuring this New York on Febru- Association through this new executive work moves forward and supporting the ary 12th and Board team. Outgoing President, Robert Briskman Joint Task Force), and the third area is the and Committee meet- from Sirius XM Radio, will remain as a complex and often contradictory issue of the ings the day prior.