Introduction to the New Telecommunications Law and CFE’s Involvement
Under the newly enacted Telecommunications Law in Mexico, the Federal Electricity Commission (CFE) will assume a dual role in the telecommunications sector, acting both as a social provider and a commercial competitor.
CFE’s Social Profile
In its social profile, the CFE will aim to provide free connectivity in areas of Mexico that currently lack coverage. This initiative seeks to bridge the digital divide and ensure remote populations have access to telecommunications services.
CFE’s Commercial Profile
Simultaneously, the CFE will participate as a commercial entity in public tenders for radioelectric spectrum concessions. This will enable it to offer commercial internet services to end-users, competing on equal terms with private telecommunications operators.
Neutrality of Competition and Regulatory Bodies
The new law upholds the principle of competitive neutrality, ensuring no preferential treatment for any operator by the emerging Regulatory Commission of Telecommunications (CRT).
As a commercial entity, the CFE will not receive preferential treatment. However, its social vocation grants it preferential access to the spectrum.
Key Figures and Objectives
José Merino, the head of the Digital Transformation and Telecommunications Agency, asserts that the new law aims to create favorable conditions for private investment and encourage the deployment of telecommunications infrastructure across Mexico.
The telecommunications sector demands significant investment due to rapid technological changes. Merino emphasizes that the primary goal is to close the digital gap, with 15 million Mexicans currently lacking access, including 10.2 million in areas without coverage and 4.4 million unable to afford services despite having access.
Public Spectrum Allocation
The public radioelectric spectrum will be allocated to governmental bodies to support social programs like those under the Well-being Programs.
Promoting internet access as a fundamental right that enables other rights, such as education, freedom of expression, and civic participation, is another key objective.
Regulatory Bodies and Independence
The new law foresees the creation of an independent Regulatory Commission of Telecommunications (CRT) with technical, budgetary, and operational autonomy. The CRT’s decisions will be made by five commissioners appointed by Mexico’s President and approved by a simple majority in Congress.
Meanwhile, the Antimonopolies Agency, also in the process of establishment, will handle preponderance and asymmetric regulation matters.
Merino’s Assurances
Merino defends the new law, stating that it does not permit surveillance or censorship. The spirit of the laws aims to expand access to user data for Mexican citizens.
He clarifies that the law does not introduce surveillance mechanisms or allow geolocation without judicial authorization. User data is safeguarded by operators, such as CURP when activating a line, and only accessed with judicial authorization for investigations.
Government’s Role in Telecommunications
The new law allows the CFE to provide telecommunications services in remote areas and compete in the market. This dual role was previously advised against by the National Telecommunications Institute (CANIETI), which stated that the government’s involvement should be limited to non-profit schemes to ensure access where the market has fallen short.
These limitations stem from constitutional principles, such as competitive neutrality and regulatory criteria acknowledging that public resource use for commercial purposes can distort the market.
CANIETI warned that allowing government competition in the market would be contrary to international agreements and investment protection accords.
Key Questions and Answers
- What is the dual role of CFE in the telecommunications sector? The CFE will provide telecommunications services to remote areas (social profile) and compete in the market as a commercial entity.
- How does the new law uphold competitive neutrality? The law ensures no preferential treatment for any operator by the CRT, while granting the CFE preferential spectrum access due to its social vocation.
- What are the objectives of the new Telecommunications Law? The law aims to close the digital gap, promote internet access as a fundamental right, and allocate public spectrum for social programs.
- How are regulatory bodies established under the new law? The law creates an independent CRT and assigns the Antimonopolies Agency to handle preponderance and asymmetric regulation matters.
- What assurances has José Merino provided regarding the new law? Merino asserts that the law does not permit surveillance or censorship and emphasizes user data protection through judicial authorization for investigations.
- What is the government’s role in telecommunications according to the new law? The CFE can provide services in remote areas and compete in the market, following previous CANIETI recommendations limiting government involvement to non-profit schemes for market access.
