Introduction
I closely followed the first conversation on Claudia Sheinbaum’s Telecommunications and Broadcasting Reform Initiative, which she submitted to the Senate on April 23. In previous articles, I shared my reflections on this initiative’s content. Fortunately, there are indications that aspects posing a censorship risk will be modified. However, it remains to be seen if these changes will extend to crucial matters such as blocking digital platforms or requiring TV channels to seek permission from the Secretariat of Government for programs funded by foreign money.
Potential Censorship Concerns
Article 201 of the initiative proposes that channels visible on paid TV systems, like CNN, Fox News, Deutsche Welle (DW), BBC, RTVE, Antenna 3, and RT (Russia Today), must seek authorization from a politically appointed authority without checks and balances regarding their programming content. This would essentially make these channels subject to the whims of Segob officials, who would act as censors over what Mexicans can watch in programs funded by foreign money.
Competition Aspects and Existing Challenges
Several competition-related aspects need careful consideration, especially those concerning the distribution of responsibilities between the Digital Transformation and Telecommunications Agency and the proposed National Antimonopoly Commission in the Federal Economic Competition Law reform. It’s crucial to acknowledge that Mexico still lacks genuine competitive conditions.
Although the 2013-2014 telecommunications reform created conditions for Mexicans to enjoy telecommunication services at better prices, the fact that Mexico ranks among the lowest in broadband (fixed and mobile) speeds among OECD member countries, and even behind several Latin American nations, indicates that Mexicans continue to pay a hidden price for not having broadband services comparable to those enjoyed by residents in other continental regions.
This is a clear sign that conditions prevailing in Mexico hinder the telecommunications sector’s efficient development, often due to a single entity obstructing others’ performance to maintain tight control.
Lamentations at the Senate Conversation
During the conversation at the Senate, representatives of various companies lamented to senators about their struggles against an entity they claim stifles their economic activities—from their unique perspective on a competitive market. They portrayed themselves as weak economic agents hindered by insufficient support, far from reality.
Multiple operators competing with the Dominant Economic Agent in the Telecommunications Sector (DEATS) documented and reported to the IFT over the past 11 years that this agent repeatedly violated specific obligations imposed to foster competitive market conditions, as envisioned by the Constitution and legal framework. However, disappointingly for the market and telecommunications users in Mexico, the IFT hardly imposed any penalties despite numerous cases opened against this operator.
This sends a discouraging message to those genuinely wishing to compete in Mexico: when the dominant sector entity behaves poorly, it’s nearly impossible for them to face consequences and correct their actions, ultimately harming Mexicans.
Key Questions and Answers
- What is the main concern regarding Claudia Sheinbaum’s proposed Telecommunications and Broadcasting Reform Initiative? The primary worry is the potential for censorship, particularly the possibility of blocking digital platforms and requiring TV channels to seek permission from the Secretariat of Government for programs funded by foreign money, as outlined in Article 201.
- Why are competition aspects crucial in this reform? Competition aspects are vital because Mexico still lacks genuine competitive conditions in the telecommunications sector. The existing challenges, such as low broadband speeds compared to other countries, indicate that conditions must be improved for a more efficient sector.
- What issues did operators raise during the Senate conversation? Operators complained about a dominant entity in the telecommunications sector obstructing their activities, claiming insufficient support. However, these claims were contradicted by evidence of the DEATS repeatedly violating specific obligations imposed to foster competitive market conditions.
- What message does the IFT’s limited enforcement against the DEATS send to potential competitors? The limited enforcement sends a discouraging message that poor behavior by dominant entities in the sector is unlikely to result in consequences, disadvantaging genuine competition and Mexican users.
*The author is an economist.*
