On July 14, 2014, the decree by virtue of which the Federal Law on Telecommunications and Broadcasting, and the Law of the Public System of Mexican Broadcasting, as well as other amendments, supplements and repeals to other related telecommunications and broadcasting legal provisions were enacted, was published in the Official Gazette of the Federation. The Decree became effective 3on August 13, 2014.

1. TELECOMMUNICATIONS & BROADCASTING
Lic. Carlos J. Díaz Sobrino
cdiaz@s-s.mx
Campos Elíseos 345, Pisos 2, 3 y 11
Col. Chapultepec Polanco
11560 México, D.F.
Tel: +52 55 5279.5406
Fax: +52 55 5280.7840
www.s-s.mx 2015

2. Telecommunications & Broadcasting
Mexico’s Structural Reforms
One of the biggest efforts of this Presidency has been the modernization of
Mexico. This modernization is taking place through the implementation of 6
structural reforms in these key development sectors in Mexico:
•Labor
•Economic Competition
•Telecommunications
•Financial System
•Tax
•Energy
The decree amending and adding several provisions of the Mexican
Constitution on telecommunications and broadcasting matters was
published on June 11, 2013

3. Telecommunications & Broadcasting
Constitutional Amendment on Telecommunications and Broadcasting.
In accordance with the amendment to Article 6 of the Constitution, the
State has the obligation to guarantee access to information and
communication technologies, as well as to broadcasting and
telecommunications services, including the broadband service and
internet, establishing effective competition conditions for the rendering of
such services.
Telecommunications and broadcasting services are consolidated as public
services of general interest.
The State shall guarantee that they are rendered under conditions of
competition, quality, plurality, universal coverage, interconnection,
convergence, free access and without arbitrary interference

4. Telecommunications & Broadcasting
Mexican Regulator “IFT”
The Federal Institute of Telecommunications (IFT) is created as a
constitutionally autonomous entity, whose purpose is the efficient
development of the broadcasting services and telecommunications, and
the correct development of competence on this sectors.
IFT may asymmetrically regulate the participants, sanction the
concessionaires, impose limits to the concentration of national and
regional frequencies, award concessions and order the disincorporation of
assets, rights, partnership interests or shares, among other actions.
IFT determined preponderant economic agents in the Telecommunications
and Broadcasting sectors.

5. Telecommunications & Broadcasting
Foreign Investment
As from the date on which the Decree entered into force, foreign
investment in up to 100% is allowed in telecommunications and satellite
communication services and up to 49% in broadcasting services.
However, in the broadcasting sector, it shall be necessary for reciprocity to
exist with the country in which the investor is incorporated.
Creation of Specialized Courts
Courts specialized in matters of economic competition, broadcasting
services and telecommunications

6. Telecommunications & Broadcasting
Must carry and Must offer
Restricted television concessionaires shall be bound to air on a gratuitous
manner the open air television signals, and the open air television
concessionaires shall be bound to offer this signal to the former on a
gratuitous manner.
New Concessions
In order to encourage competition in open air television, two new open air
national TV concessions will be awarded.
Terrestrial Digital Transition
December 31, 2015 is established as the date for the conclusion of the
terrestrial digital transition.

7. Telecommunications & Broadcasting
Secondary Legislation
On July 14, 2014, the Federal Law on Telecommunications and
Broadcasting, and the Law of the Public System of Mexican Broadcasting,
as well as other amendments, supplements and repeals to other related
telecommunications and broadcasting legal provisions were enacted.
The law became effective on August 13, 2014.

8. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•This law regulates a new type of concession, named the Sole Concession.
This Sole Concession can be granted to provide all kind of
telecommunications and broadcasting services (convergent services).
•Concessions of Radio Spectrum and Orbital Resources are granted to
use, develop and exploit frequency bands from the radio spectrum and to
occupy and exploit orbital resources.
•Leasing of Radio Spectrum. This legal instrument is aimed to encourage
and promote the secondary market for the radio spectrum.

9. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•A new title to provide telecommunication or broadcasting service is
regulated, an Authorization (the old Federal Law on Telecommunications
regulated the resellers permit).
The Authorization allows, among others:
•Access wholesale services offered by concessionaires.
•Resale of services and capacity previously hired from a concessionaire of
public telecommunications network (i.e. Mobile Virtual Network Operators).
•Have its own numbering resources or acquire them through
concessionaires of public telecommunications networks.

10. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•A new title to provide telecommunication or broadcasting service is
regulated, an Authorization (the old Federal Law on Telecommunications
regulated the resellers permit).
The Authorization allows, among others:
•Access wholesale services offered by concessionaires.
•Resale of services and capacity previously hired from a concessionaire of
public telecommunications network (i.e. Mobile Virtual Network Operators).
•Have its own numbering resources or acquire them through
concessionaires of public telecommunications networks.

11. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•State’s Public Network:
•The services will be provided through the radio spectrum resulting from
the transition from analog tv to digital tv.
•The services will be carried out by PPP.
•

12. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
Net Neutrality:
 Net Neutrality principles are established, concessionaires and
authorized companies or persons who provides Internet
access services must comply with such principles.
 IFT shall issue regulation in regard to the compliance of such
principles.

13. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
Obligations related to the collaboration with authorities. Among the most
important we can mention the following:
•to geographically locate in real time, mobile communications equipment.
•to keep a record and control of the communications
•to deliver the information stored to the requesting authority
•to have a responsible area inside the company, which must be available
24x7x365 to attend any requirement of information or geographical
location, and to tap private communications.

14. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•Asymmetric Regulation.
Preponderance.
The IFT is in charge of determining the economic agents that are
preponderant in the sectors of telecommunications and broadcasting.
Economic Agents with dominance in a relevant market.
The IFT, in accordance with the law and the Federal Law on Economic
Competition has also authorities to determine economic agents with
dominance in a relevant market in telecommunications and broadcasting.
IFT is further empowered to impose specific obligations to the dominant
agents in a relevant market

15. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
•Penalties and Fines
Any breach to the provisions of the law, to the administrative provisions and to the
obligations contained in the concession and authorization titles, will be penalized by
the IFT, as well as any breach on competition matters.
A breach in the telecommunications and broadcasting sectors shall be penalized
with fines that go from the equivalent of 0.01% to 10% of the revenues of the
concessionaires or authorized persons or companies.
In the event that it is impossible to determine the revenues of the concessionaires
or authorized persons, the law establishes a series of fines which can go up to the
amount of 82 million times the minimum wage in Mexico (US $411’774,626 million
dollars approximately).
The revocation of the concession or authorization title is also established as a
penalty under the provisions of the law.

16. Telecommunications & Broadcasting
Federal Law on Telecommunications and Broadcasting
Any breach to the consumers’ rights will be penalized by the Mexican
Consumer Protection Agency.
The Ministry of the Interior will penalize any breach regarding contents and
broadcasting of the State time.
•Remedies.
IFT’s general rules, acts or omissions may only be challenged by an
“amparo indirecto” process, and such process will not be subject to
“suspension” (provisional measure).
The specialized courts of the Mexican Judicial Power will be the courts in
charge of the processes in the telecommunications and broadcasting
sectors.

17. Telecommunications & Broadcasting
Final Considerations
•New legal regime which will allow the entry of new players in the
telecommunications and broadcasting sector.
•Foreign investment is allowed 100% on telecommunications and 49% on
broadcasting.
•New Concession Title to render convergent services on telecom and
broadcasting.
•Autonomy of the IFT, making its decisions hard to challenge.
•Telecommunications sector as part of the National Infrastructure Program
(Investments of over 51,826 million dollars in telecommunications).