In the same way that the constant judicialization of regulatory measures used to worry the Comisión Federal de Telecomunicaciones, COFETEL (Telecom regulator) and slow down processes in the sector, today delays in the discussion of secondary legislation on telecommunications reform complicate compliance schedule for the Instituto Federal de Telecomunicaciones, IFETEL (Telecom regulator). And the cross versions in recent weeks on the split of Telmex fueled the debate on a particular point, the declaration of dominant operators.
The controversy has to do with a split approved by shareholders of Telmex in August 2013 . The companies concerned - Alquilador de Casas ( ALDECA ) Compañía de Teléfonos y Bienes Raíces (CTBR) and Renta de Equipo (RESA)- operate "in real estate and equipment leasing business , not related to the provision of telecom services” came out to clear up from the area of communication of the company. So it was answered the decision of the Second Judge in Civil Matters of the Federal District to deny the split request and the warnings of the Union Sindicato de Telefonistas de la República Mexicana (STRM) itself, which warned that the firm actually expects to split into two subsidiaries to operate in the sector.
The nature of the split companies is key for the implementation of one of the central points of the reform: Telmex would have more resources to avoid being labeled a "dominant" by IFETEL and sort asymmetric obligations which would be applied to them.
The regulator shall determine which companies are dominant players before March 9 and it started investigations on said regard. Although the agency did not publish which companies will be reachedb by the inquiries, both Televisa and subsidiaries of America Movil, Telmex and Telcel, admitted they were informed on said respect. Among the measures to be applied, direct regulation of rates and highest standards of service quality are foreseen. However, the most relevant one will be the unbunding of the network of dominant operators, thus allowing their competitors to access the means of connection from anywhere in the dominant network of their choice and the access point to the home network.
It is more than likely, since the passage of the constitutional reform in telecommunications, that private operators of the sector intend to conduct stock movements as Telmex did. The problem is that one of the main objectives of the new legislation was to prevent the intervention of the courts, as the agencies created to regulate the market - both IFETEL and the Comisión Federal de Competencia Económica, CFCE (Federal Economic Competition Commission) - should be expeditious enoughto solve any conflict.
Secondary laws. The extension of the start of the discussion on secondary legislation resulted in clear breaches of schedule. Its final passage, as stated by the reform itself , was scheduled for December 9, 2013 . Despite this, the deputies and senators failed to adapt the legal framework in a timely manner, and decided to postpone the deadline without formally stipulating it.
Representatives of the Political Party Partido de la Revolución Democrática (PRD) claimed in Congress that failure to meet the scheduled dates is due to the act that ots colleagues of the Political Party Partido Revolucionario Institucional (PRI) did not submit their proposal to regulate the reform. The Political Party Partido Acción Nacional (PAN), meanwhile , also stated its opininon on said regard, although more generally . According to Gustavo Madero, president of the party , the PAN shall monitor that all reforms enacted in 2013 are regulated between January and April.
Unsolved conflicts . Meanwhile, IFETEL said it would not stop its activities on said grounds. The problem is that, in turn , the body has dates to meet, for which reason it takes as basis the existing legislation to take appropriate regulatory decisions. Secondary legislation should clarify various issues which were marked by a deep level of litigation over last year.
Among them, stipulate the new rules for service licenses, which will influence on the operation of the 700 MHz and 2.5 GHz bands. In said bands there will be more availability of spectrum as a result of the recovery of spectrum made by the SCT and the project for laying shared fiber optic promoted by the State.The market also expects the final definition of the concepts “Must Carry” and “Must Offer”, which gave rise to disputes between various companies , the most resonant one was the complaint filed by TV Azteca against Dish, although other TV companies also included in their offers free-to-air television channels. Furthermore, launch two national television chains and prohibit cross-subsidies. There is also great expectancy around the possibility that, once adapted to the new legislation, América Móvil may enter the pay-TV market.