Background on the Telecommunications and Broadcasting Sector in Mexico
The Senate of the Republic plans to approve a new legal framework for telecommunications and broadcasting companies operating in Mexico by July. This decision comes after the Senate concluded a series of dialogues between legislators and industry representatives to establish modern legislation that capitalizes on opportunities like nearshoring, while addressing historical demands for affordable radiofrequency spectrum prices.
These sectors contribute significantly to Mexico’s economy, generating approximately 3% of the country’s GDP (around $32.6 billion annually) and providing direct employment to 301,806 people. Moreover, they enable communication for nearly 35 million households in Mexico.
Conversations and Key Issues
The Senate organized five roundtable discussions focusing on topics such as tax policies for frequency utilization, asymmetrical regulation, audience rights, emerging technologies like artificial intelligence, and regulatory authorities’ powers.
- Feedback gathered from senators’ conversations with business leaders, academics, experts, and the interested public will be considered in the upcoming phase of modifying the still-draft Telecommunications and Broadcasting Matters Law (LMTR).
- The LMTR was initially designed in early 2025 by a presidential area and needs revisions before being presented to the Senate for evaluation and approval in committees.
- A deadline of June 30th has been set to achieve a draft that will then be submitted to the Senate’s leadership for assessment and convening of an extraordinary session in July.
Senator Javier Corral, a Morenista and former Panist promoter of the current Federal Telecommunications and Broadcasting Law (LFTR), described these roundtables as “a plural, democratic, open exercise with feedback.” He mentioned creating a summary of the main proposals and changes that emerge.
Concerns Regarding the Proposed Law
Industry, civil organizations, and academia demanded these dialogues to address concerns that the Telecommunications and Broadcasting Matters Law draft contradicts Mexico’s commitments under the T-MEC and exhibits hints of censorship, excessive power concentration, and lack of a technical collegiate body within the regulatory authority, the Agency for Digital Transformation and Telecommunications (ATDT), replacing the Federal Telecommunications Institute (IFT).
Senator Javier Corral warned of significant changes to the regulatory body’s design, stating, “There will be a complete reconfiguration of the organ’s design regarding its attributes.”
- The ATDT will likely have up to five technical commissioners, attempting to mirror the seven-member full body (currently with four active members overseeing the IFT, one of the world’s most respected telecommunications regulatory bodies).
Key Promises from the Conversations
Some key promises emerging from these discussions include:
- Elimination of the controversial Article 109 in the LMTR, which allowed the government to block digital platforms.
- Acknowledgment that spectrum concession costs threaten businesses’ viability, leading to a public policy prioritizing coverage over prices.
- Ensuring fair competition between the state and private companies in spectrum auctions for commercial services.
- Allowing public, social, and indigenous radio stations to sell local advertising for the first time.
IFT’s Request for Funding
While the Senate revises the Telecommunications and Broadcasting Matters Law, the Federal Telecommunications Institute (IFT) urges the Legislative Power to release funds for its nearly 1,300 employees’ salaries. The Chamber of Deputies allocated a budget of 500 million pesos, sufficient to cover IFT salaries until June. However, the new telecommunications law was initially expected to be voted on in the first half of the year, now set for July in the Senate and August in the Chamber of Deputies, becoming effective beyond September.
Audited reports indicate that the IFT collected 180,917.8 million pesos over ten years for the Federal Treasury, which the government used for infrastructure projects and social programs.
Looking Ahead
Senator Javier Corral emphasizes that the new law will be open to all voices and meet the standards of Mexico’s telecommunications sector:
“There will be a period of hard work, drawing with a pencil… We will continue talking with some experts in a more direct manner… We will have a better law, a better draft, and most importantly, legislation that matches the rights of Mexicans.”
Key Questions and Answers
- Q: What is the purpose of the Senate’s discussions on the Telecommunications and Broadcasting Matters Law?
- Q: How many roundtable discussions were held, and what topics were covered?
- Q: What are the key promises emerging from these conversations?
- Q: What is the status of funding for the Federal Telecommunications Institute (IFT) employees’ salaries?
A: The Senate aims to establish modern legislation addressing opportunities like nearshoring and historical demands for affordable radiofrequency spectrum prices.
A: Five roundtable discussions were organized, focusing on topics such as tax policies for frequency utilization, asymmetrical regulation, audience rights, emerging technologies like artificial intelligence, and regulatory authorities’ powers.
A: Key promises include eliminating controversial Article 109, prioritizing coverage over prices in spectrum concessions, ensuring fair competition between the state and private companies in spectrum auctions for commercial services, and allowing public radio stations to sell local advertising.
A: The IFT urges the Legislative Power to release funds for its employees’ salaries, as the current budget allocated by the Chamber of Deputies is only sufficient until June.
