Reform in Mexico and the IFT as a convergent regulator Mario German - - PowerPoint PPT Presentation

Overview of the Telecom Reform in Mexico and the IFT as a convergent regulator

Mario German Fromow Rangel Commissioner

Federal Telecommunications Institute

CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION

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

 Telecommunications, Broadcasting broadband and Internet as fundamental rights for Mexicans  To foster competition  To reduce prices for end users  To increase service penetration, specifically for broadband Constitutional Reform Pillars Human rights and public services Asymmetric regulation to foster competition Strengthen the legal and regulatory framework

Main objectives and benefits

CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION

Regulation focus on user’s welfare:

• 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 Human rights and public services

Main objectives and benefits

CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION

A solid framework to provide certainty and to attract investment

• Creation of the IFT as an autonomous, self-

governing regulator

• Open and public selection process for the IFT

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 Strengthen the legal and regulatory framework

Main objectives and benefits

CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION

Asymmetric

regulation to foster competition

Stronger regulation to foster competition

• New public/private wholesale provider
• 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)

Main objectives and benefits

Federal Telecommunications Institute

CONSTITUTIONAL REFORM-TELECOMMUNICATIONS, BROADCASTING AND ECONOMIC COMPETITION

Not enough time has passed since the constitutional reform was approved for a substantial structural reconfiguration of the telecommunications and broadcasting sectors to have

• ccurred, 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

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

The most recent AWS spectrum auction in México

MHz: Mega Hertz GHz: Giga Hertz AWS: Advanced Wireless Services PCS: Broadband Personal Communications Service

BEFORE CONSTITUTIONAL REFORM-TELECOMMUNICATIONS 120 MHz 60 MHz 42 MHz Total Total: 222 MHz ACTUAL STATUS 120 MHz 130 MHz 64MHz Total 314 MHz FORECAST 190 MHz 120 MHz 140 MHz 64 MHz 90 MHz Total: 604 MHz

700 MHz 800 MHz AWS PCS 2.5 GHz

2016 Auction IFT-3: 80 MHz AWS in 1710- 1780 MHz/2110-2180 MHz band 70 MHz have been already assigned to Mobile Operators 2016-2017 Auction IFT-7: 130 MHz in 2500-2690 MHz band 2015-2018 Red Compartida: “The Biggest telecommunication project in the Mexico history” 700 MHz band UIT-R M.1036 A5: 90 MHz in 698-806 MHz band

MEXICO SPECTRUM ALLOCATION

Spectrum resume

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

MEXICO SPECTRUM ALLOCATION

According to “The 2016 Annual Work Program 2016” of IFT (PAT 2016)

México and New Zealand Proposal

GUARD BAND RADIOASTRONOMY

IMT

(UPLINK) TV TV

700 MHz BAND

CENTRAL GAP

617 617

MHz

652 652

MHz

608 608

MHz

698 698

MHz

663 663

MHz

614 614

MHz

IMT

(DOWNLINK)

“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

• f 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;

5G SPECTRUM NEEDS AND REQUIREMENTS

ITU World Radiocommunication Conference 2015 WRC-15 / WRC-19

Source: Final Acts WRC-15, World Radiocommunication Conference, 2015

2 to conduct and complete in time for WRC-19 the appropriate sharing and compatibility studies¹, 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 GHz², 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

5G SPECTRUM NEEDS AND REQUIREMENTS

ITU World Radiocommunication Conference 2015 WRC-15 / WRC-19

Source: Final Acts WRC-15, World Radiocommunication Conference, 2015

Conectividad

Gobierno Otras industrias clave Comercio Educación Banca

Adopción Tecnología

+

Salud

17

Y es a través de la conectividad y el desarrollo tecnológico, que se potenciarán sectores clave en México

Nuevos retos hacia 2020 propios del sector

Brecha Digital

Nuevos modelos de negocio (OTTs) Convergenci a de servicios Neutralidad de la Red Mayor tráfico de información Adopción tecnológica Ciber seguridad / Privacidad Internet de las Cosas

19

16

Estos avances han permitido que empresas innovadoras se expandan en el mercado mexicano

INTERAC

ERACTU TUAN ANDO Y BENEFICIAN FICIANDO TRANS NSVE VERS RSALM ALMENTE ENTE A OTROS OS SECTO TORES RES DEL DEL PAÍS ÍS…

El IFT continúa trabajando a futuro

Gracias

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

LEGAL FRAMEWORK IN MEXICO