Policy reform in networks infrastructure: The case of Mexico

Telecommunications Policy

Volumn 21, Issue 8, 1997, Pages 721-732

  Landa, Ramiro Tovar ^a  

^a INSTITUTO TECNOLÓGICO AUTÓNOMO DE MÉXICO   (Mexico)

Author keywords

[No Author keywords available]

Indexed keywords

COMPETITION; INDUSTRIAL MANAGEMENT; PUBLIC POLICY;

MANAGED COMPETITION; NETWORKS INFRASTRUCTURE; TELECOMMUNICATIONS POLICY REFORM;

TELECOMMUNICATION SERVICES;

EID: 0031245907     PISSN: 03085961     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0308-5961(97)00042-6     Document Type: Article

References (24)

1. World Economic Forum, The Global Competitiveness Report 1996.
2. Cost of a three-minute call to the United States during peak hours.
3. TELMEX was privatized in 1990, it was acquired by a national financial, industrial and services group (Carso), Southwestern Bell and France Telecomm.
4. Since 1990 the telecommunication deregulation process in Mexico ranged from the liberalization of equipment suppliers, private networks, trunking, and the creation of regional duopolies in cellular service to the setting of long distance competition in 1997.
5. These provisions have been included in the Federal Telecommunications Laws (LFT) 1995, Chapter IV.
6. There are six new long distance carriers in Mexico. They include Avantel (Banamex-MCI), Alestra (Alfa-AT&T-GTE), Iusatel (Bell-Atlantic) and Marcatel.
7. LFT, Art. 42, and Modification of Telmex Concession Deed, Chapter 5, Section 5-2.
8. At 7.5 pesos per USD.
9. Brock, G W, The Economics of Interconnection. Teleport Communications Group, April 1995.
10. On August 1, 1996 the FCC adopted new rules to implement Sections 251 and 252 of the Telecommunications Act of 1996.
11. TELMEX's local and long distance service will be regulated fully by a price-cap formula in 1999 when the efficiency factor will be determined, however interconnection pricing is excluded from this scheme.
12. Announcement by the Communications and Technological Development Undersecretary. However, the reselling is contemplated on the LFT, Chapter IV, Section III.
13. LRSF, Articles 35 and 36, as well as in its regulations, third section of Chapter III.
14. This means of regulation is linked to the concept of 'Yardstick Competition' which regulates on the basis of comparing the performance of economic agents which are similar both as regards the service they provide and their technical characteristics.
15. Although vertical integration between distribution and trunk transport of natural gas is not permitted, in principle, exceptions may easily exist.
16. The authority assigned two bands for cellular, band 'A', 825-835 and 870-880 MHz and band 'B' 835-845 and 880-890 MHz, in each region. TELCEL, TELMEX filial, is operating in the band 'B' nationwide and, by several acquisitions IUSACELL is operating in four different regions.
17. The next bidding process will be to wireless, fixed and mobile phone services including frequencies to PCS. However the authority only will offer frequencies in the band of 440-450, 485-495 and 1850-1990 MHz, and 3.4-3.7 GHz, instead of adding frequencies along the 800 MHz, 1.3, 1.7-1.8, 2.3, 4.3-4.7 GHz bands.
18. Hazlett, T, The rationality of US regulation of broadcast spectrum, Journal of Law and Economics, April 1990.
19. LRSF, Article 47 and Natural Gas Reglamentation; Article 81. The LFT refers to the LFCE regarding tariff regulations in Article 63 and the CFC's opinion regarding the allocation of rights.
20. In the US, newspapers once resisted the growth of radio stations, which in turn opposed the growth of television, which in turn resisted the growth of cable or restricted TV, which resisted the participation of telephone companies in video distribution.
21. Regulatory agencies in the US have established a lengthy series of polices with the underlaying effect of protect incumbent competitors from the threat of entry, for example, those concerning joint ownership by television companies and newspapers, rule out telephone companies from distributing video in their areas of service, joint ownership by television companies and restricted television operators and obtaining licenses for frequencies for a predetermined use, without being able to modify it. The majority of these provisions were eliminated or relaxed in the 1996 Telecommunications Act, however the restrictive licensing on spectrum use remains.
22. In the mid-1970s, the Federal Communications Commissions decreed that MCI should not participate in the US long distance market. However, in 1978, the Court of Appeals correctly overturned this verdict.
23. LFT, Article 60; LRSF, Article 46.
24. Hayek, F A, Law, Legislation and Liberty, Vol. 1, Rules and Order. University of Chicago Press, Chicago, 1973.