Background and Key Players
The Mexican telecom industry is currently grappling with the implementation of a new phone registry system, which began on January 9th. The Comisión Reguladora de Telecomunicaciones (CRT) has set a tight deadline of 30 natural days for the industry to adapt its technological systems. This ambitious plan requires registering approximately 140 million cellphone numbers within a 172-day period, from January 9th to June 30th. This doesn’t include the registration of millions of access points used in the productive sector.
Key industry players, including Televisa, Megacable, AT&T, and Telefónica, collectively serve 50 million Mexican users. These companies’ representatives visited the CRT offices on January 9th to express their concerns about the rapid implementation timeline.
Technical Challenges and Costs
From the moment the new registry system went live, technical complications have surfaced. These issues translate into an additional economic cost of 3.5 pesos plus VAT for each of the three possible attempts, which currently must be covered by telecom companies. For users, this means a mandatory visit to their service provider’s customer support center if they fail to register remotely.
As of now, the technical problems have resulted in a 42% failure rate for registration attempts, according to sources within the industry.
Industry Response and Impact
The Cámara Nacional de la Industria Electrónica de Telecomunicaciones y Tecnologías de la Información (CANIETI) has been vocal about the need for an extension, having requested it on December 30th. However, their concerns have not been addressed by the CRT.
Despite Telcel’s early preparation, they are now encountering technical issues that need immediate attention. The company has reported intermittent problems or delays in number linking, and they will formally communicate these issues later.
Altán Redes, another major player, reported a high success rate in their registrations. However, minor customers have mentioned a 60% success rate for Altán’s validations.
Financial Implications
The financial implications of failed registration attempts are significant for telecom companies. For instance, Movistar would need to allocate 79 million pesos for successful registration of all users under the assumption of a single successful attempt.
Telcel would incur a cost of 293 million pesos, and AT&T would face an expenditure of 83 million pesos for successful registration on the first attempt.
The total infrastructure cost for this registry system is estimated at 4,053 million 652,389.40 pesos (approximately 220.7 million USD). Initially, this cost will be absorbed by the telecom industry, which may eventually be passed on to consumers through their service plans.
Key Questions and Answers
- What is the new phone registry system? It’s a mandate by the CRT to register approximately 140 million cellphone numbers within 172 days, from January 9th to June 30th.
- Who are the key players involved? Major telecom companies like Televisa, Megacable, AT&T, and Telefónica, which collectively serve 50 million Mexican users.
- What technical challenges are being faced? Significant technical issues have emerged, resulting in a 42% failure rate for registration attempts.
- What are the financial implications? Telecom companies could face substantial costs, with estimates ranging from 79 million pesos for Movistar to 293 million pesos for Telcel, should all attempts succeed on the first try.
- How will this cost be covered? Initially, the telecom industry will absorb the estimated 4,053 million 652,389.40 pesos (approximately 220.7 million USD) cost, which may eventually be passed on to consumers through their service plans.
