Overview of the Telecom Reform in Mexico and the IFT as a convergent regulator Mario German Fromow Rangel Commissioner
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Federal Telecommunications Institute For many years, the high levels of concentration that were prevalent in the various Mexican telecommunications and broadcasting markets led to high prices, a reduced offering, poor service penetration, substandard quality, and low levels of investment. To address this situation, on June 11, 2013, a constitutional reform in telecommunications and broadcasting was issued This reform created the Federal Telecommunications Institute Autonomous agency With its own legal personality and equity Focused on the efficient development of broadcasting and telecommunications Authority on economic competition in this sectors The July 14, 2014 the Federal Telecommunications and Broadcasting Law was published
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Main objectives and benefits Human rights and public Main objectives services Telecommunications, Broadcasting broadband and Internet as fundamental rights for Mexicans Constitutional To foster competition Reform To reduce prices for end users Pillars To increase service penetration, Strengthen specifically for broadband Asymmetric the legal regulation and to foster regulatory competition framework
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Main objectives and benefits Human rights Regulation focus on user’s welfare: and public services • Free access to information • Freedom of expression, plurality, and diversity • Right to access to ICTs, broadcasting, and communication services, specifically to broadband • Protection to users and audiences • Telecommunication and broadcasting become public services
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Main objectives and benefits A solid framework to provide certainty and to attract investment • Creation of the IFT as an autonomous, self- Strengthen the legal and governing regulator regulatory • Open and public selection process for the IFT framework Commissioners • IFT decisions cannot be suspended during judicial review • Creation of specialized courts in telecom and antitrust • Elimination of Foreign Direct Investment restrictions (100% telecom and 49% media-with reciprocity rule) • Convergent licenses to provide all services • Authority to grant and revoke licenses • Exclusive powers to the IFT regarding antitrust for media and telecom
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Main objectives and benefits Asymmetric Stronger regulation to foster competition regulation to foster • New public/private wholesale provider competition • New public broadcaster • Must carry-Must Offer obligations • Asymmetric regulation for preponderant agents in broadcasting and telecommunication sectors • New entrants to free to air digital broadcasting market (2 nationwide licenses)
CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION Federal Telecommunications Institute Not enough time has passed since the constitutional reform was approved for a substantial structural reconfiguration of the telecommunications and broadcasting sectors to have occurred, and although there are still several challenges ahead, the implementation of the reform has already brought significant results during this period Greater competition Significantly reduced prices A broader service offering More investment in infrastructure More foreign direct investment Technological improvements Better quality of service
MEXICO SPECTRUM ALLOCATION The most recent AWS spectrum auction in México In February, 2016, the IFT made available 80 MHz in the bands 1710-1780 MHz/2110-2180 MHz (BAND AWS) to mobile services The band allocation procedure was performed through an open public auction Now, there are already assigned 70 MHz more, which will significantly enhance mobile services in the country
MEXICO SPECTRUM ALLOCATION Spectrum resume BEFORE CONSTITUTIONAL REFORM-TELECOMMUNICATIONS 120 MHz 60 MHz 42 MHz 2016 Auction IFT-3: 80 MHz AWS in 1710- 1780 MHz/2110-2180 MHz band 70 MHz Total: 222 MHz have been already assigned to Mobile 700 MHz Total ACTUAL STATUS Operators 800 MHz 120 MHz 130 MHz 64MHz AWS 2016-2017 Auction IFT-7: 130 MHz in PCS 2500-2690 MHz band 2.5 GHz Total 314 MHz 2015-2018 Red Compartida: “The Biggest FORECAST telecommunication project in the 190 MHz 120 MHz 140 MHz 64 MHz 90 MHz Mexico history” 700 MHz band UIT-R M.1036 A5: 90 MHz in 698-806 MHz band MHz: Mega Hertz GHz: Giga Hertz AWS: Advanced Wireless Total: 604 MHz Services PCS: Broadband Personal Communications Service
MEXICO SPECTRUM ALLOCATION According to “The 2016 Annual Work Program 2016” of IFT (PAT 2016) It will start a process of competitive bidding for the concession of the use, development and commercial exploitation of 130 MHz of radio spectrum available in the Frequency Band 2500-2690 MHz (Bidding IFT-7) for mobile wireless access services The process will start by publishing public opinion of the Bidding, Appendices and Annexes. The public process aims to deliver more elements of certainty to the industry concerned about issues of public interest
México and New Zealand Proposal RADIOASTRONOMY CENTRAL GAP GUARD BAND IMT IMT 700 MHz TV TV BAND (DOWNLINK) (UPLINK) 608 608 614 614 617 617 652 652 663 663 698 698 MHz MHz MHz MHz MHz MHz
5G SPECTRUM NEEDS AND REQUIREMENTS ITU World Radiocommunication Conference 2015 WRC-15 / WRC-19 “ RESOLUTION COM6/20 (WRC-15) … The World Radiocommunication Conference (Geneva, 2015), … resolves to invite ITU-R 1 to conduct and complete in time for WRC-19 the appropriate studies to determine the spectrum needs for the terrestrial component of IMT in the frequency range between 24.25 GHz and 86 GHz , taking into account: – technical and operational characteristics of terrestrial IMT systems that would operate in this frequency range, including the evolution of IMT through advances in technology and spectrally efficient techniques; – the deployment scenarios envisaged for IMT-2020 systems and the related requirements of high data traffic such as in dense urban areas and/or in peak times; – the needs of developing countries; – the time-frame in which spectrum would be needed; Source: Final Acts WRC-15, World Radiocommunication Conference, 2015
5G SPECTRUM NEEDS AND REQUIREMENTS ITU World Radiocommunication Conference 2015 WRC-15 / WRC-19 2 to conduct and complete in time for WRC-19 the appropriate sharing and compatibility studies ¹ , taking into account the protection of services to which the band is allocated on a primary basis, for the frequency bands: – 24.25-27.5 GHz ² , 37-40.5 GHz, 42.5-43.5 GHz, 45.5-47 GHz, 47.2-50.2 GHz, 50.4-52.6 GHz, 66-76 GHz and 81-86 GHz, which have allocations to the mobile service on a primary basis; and – 31.8-33.4 GHz, 40.5-42.5 GHz and 47-47.2 GHz, which may require additional allocations to the mobile service on a primary basis, ¹ Including studies with respect to services in adjacent bands, as appropriate ² When conducting studies in the band 24.5-27.5 GHz, to take into account the need to ensure the protection of existing earth stations and the deployment of future receiving earth stations under the EESS (space-to-Earth) and SRS (space-to- Earth) allocation in the frequency band 25.5-27 GHz Source: Final Acts WRC-15, World Radiocommunication Conference, 2015
Y es a través de la conectividad y el desarrollo tecnológico, que se potenciarán sectores clave en México Gobierno Otras industrias Comercio clave + Adopción Conectividad Tecnología Banca Educación Salud 17
Nuevos retos hacia 2020 propios del sector Brecha Digital Nuevos Mayor tráfico modelos de Convergenci Neutralidad Ciber Adopción Internet de las de negocio a de servicios de la Red seguridad / tecnológica Cosas información (OTTs) Privacidad 19
Estos avances han permitido que empresas innovadoras se expandan en el mercado mexicano I NTERAC ERACTU TUAN ANDO Y BENEFICIAN FICIANDO TRANS NSVE VERS RSALM ALMENTE ENTE A ÍS … OTROS OS SECTO TORES RES DEL DEL PAÍS 16
El IFT continúa trabajando a futuro Gracias
LEGAL FRAMEWORK IN MEXICO Constitutional decree in telecommunications Spectrum concessions shall be awarded through a public tender, to ensure maximum participation, preventing concentration phenomena that run counter to the public interest and ensuring the lowest Price of services to the end user. In no case shall be determining factor to choose the winning bidder be purely economic
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