Introduction
The Comisión Reguladora de Telecomunicaciones (CRT) has completed its first 60 days as Mexico’s new telecommunications and broadcasting regulator, succeeding the now-defunct Instituto Federal de Telecomunicaciones (IFT) following its termination on the night of October 16. This sector, comprising telecommunications and broadcasting, contributes significantly to Mexico’s economy, accounting for 4% of the GDP and employing nearly 300,000 families. With 185 million fixed and mobile access points for video, voice, and data services, the telecommunications industry boasts a cellular coverage of 93% of the population and over 650,000 kilometers of infrastructure across the country.
The Good: A Hardworking CRT
In its initial 60 days, the CRT has approved 230 agreements or matters, some of which were contentious for the sector and directly impacted consumers. The CRT has primarily focused on interconnection tariffs, holding seven total plenary sessions, including four extraordinary and two ordinary meetings. Among these, notable achievements include approving Megacable Holdings’ minorist tariffs as a significant market player and the controversial mobile telephony registry. Additionally, the CRT has worked on Telcel’s tariffs for the rest of the market and documented Televisa’s dominant passive infrastructure offer in broadcasting.
Two former telecom regulators, Mony de Swaan and Pedro Huichalaf, have noted that the CRT is just beginning its journey as a regulator in Mexico and must now establish its own path to distinguish itself from the IFT. Both de Swaan and Huichalaf previously led regulatory bodies with legal frameworks similar to today’s CRT, achieving milestones that still benefit consumers.
The Bad: CRT’s Slow Start?
Despite the CRT’s 60 days of work, this period might still be insufficient to replenish the information databases built by the IFT, which have been crucial in constructing sector snapshots in Mexico. The CRT has yet to update essential data like portability, fully recover the IFT’s work on public concession registration, or publicly announce the official functionary overseeing spectrum matters. Moreover, the CRT’s claim that Mexican radioelectric spectrum is 7% cheaper than international prices has raised eyebrows among telecom ministers in Ibero-American groups, as this would imply Telcel wouldn’t complain about spectrum prices and AT&T and Movistar wouldn’t have left the country due to pricing.
The Ugly: CRT’s Listening and Labor Conflicts
The CRT’s first 60 days will be marked by the approval of the new mobile telephony registry, but not for its speed, rather due to the scant argumentation from commissioners regarding public consultation and final approval of this initiative. This means that starting January 1, users must link their cellular lines to their CURP, despite businesses requesting more time for proper accreditation during public consultations. Meanwhile, the CRT dedicated more days to public radio and indigenous broadcasting.
De Swaan noted, “The CRT has attempted to listen to operators’ genuine concerns in the Mobile Line Identification Guidelines. However, the environment doesn’t seem favorable for the CRT to gain time. Internal questions about the reform’s origin, potential structural changes, and urgent coordination needs with the CNA for digital market recovery all require a fully established regulator with technical rigor.”
The CRT has also faced controversy regarding former IFT employees seeking payment of their severance packages, totaling 38 million pesos for 89 employees ranging from deputy directors to drivers. Mony de Swaan stated, “This labor conflict sends insensitive messages towards the market and CRT employees.”
Conclusion
The CRT’s character will become clearer in the coming months as it tackles the accumulated tasks during the transition period. Notably, the halt in sectorial statistics publication limits market analysis and informed decision-making.
