Introduction
A new project of law redefining Mexico’s telecommunications and broadcasting legal framework is ready for discussion and voting in the Senate of the Republic. The proposed Ley en Materia de Telecomunicaciones y Radiodifusión (LMTR) aims to replace the 12-year-old Federal Telecommunications and Broadcasting Law (LFTR), impacting sectors contributing 4% to Mexico’s GDP, approximately $35 billion annually, and supporting 301,806 families. These sectors are crucial for the communication needs of Mexico’s 35 million households.
Key Changes in the New Project of Law
The new law proposes to establish an independent technical regulatory body, the Comisión Reguladora de Telecomunicaciones (CRT), to avoid conflicts with the USMCA. It also ensures discounted spectrum allocation for operators targeting underserved markets and confirms that social, indigenous, and Afro-Mexican radio stations can sell local advertising while requiring radio and television stations to have a dedicated audience advocate per concessionaire, rather than by economic group.
CRT’s Responsibilities and Composition
The CRT will regulate spectrum administration, orbital resources, infrastructure sharing, and impose sanctions. It assumes many responsibilities previously held by the Federal Telecommunications Institute (IFT) but lacks full autonomy like its predecessor.
- CRT members will serve seven-year terms, compared to the nine-year terms established in 2013 for IFT members.
- The new law requires candidates for CRT commissioners to have at least three years of relevant telecommunications and broadcasting experience, unlike the previous law’s specialization and verification through evaluations by the Bank of Mexico, National Institute for Educational Evaluation, and National Institute of Statistics and Geography.
Spectrum Allocation and Public Broadcasting
The new legislation guarantees spectrum access for operators covering geographically or economically challenging areas, provided they submit periodic compliance reports. Additionally, public, social, indigenous, and Afro-Mexican broadcasting stations will be allowed to sell local advertising, subject to submitting detailed activity reports and shareholder lists every April 30.
Audience Advocates
The new law mandates the appointment of audience advocates per concessionaire, who must serve for three years with a single renewal possibility.
State-Owned Enterprise’s Role
The new law highlights the Comisión Federal de Electricidad (CFE) as the state-owned entity responsible for providing services to underserved markets. However, it remains unclear whether CFE or its subsidiaries will directly fulfill this obligation.
Key Questions and Answers
- What is the purpose of the new LMTR? The new law aims to replace the 12-year-old Federal Telecommunications and Broadcasting Law (LFTR) to redefine Mexico’s telecommunications and broadcasting legal framework.
- What are the CRT’s main responsibilities? The CRT will regulate spectrum administration, orbital resources, infrastructure sharing, and impose sanctions. It assumes many responsibilities previously held by the Federal Telecommunications Institute (IFT) but lacks full autonomy like its predecessor.
- How will spectrum allocation change under the new law? The new legislation guarantees spectrum access for operators covering geographically or economically challenging areas, provided they submit periodic compliance reports.
- What are the new rules for public broadcasting stations? Public, social, indigenous, and Afro-Mexican broadcasting stations will be allowed to sell local advertising, subject to submitting detailed activity reports and shareholder lists every April 30.
- What is the role of state-owned enterprises in the new law? The Comisión Federal de Electricidad (CFE) is highlighted as the state-owned entity responsible for providing services to underserved markets. However, it remains unclear whether CFE or its subsidiaries will directly fulfill this obligation.
