Instituto Federal de Telecomunicaciones

The Plenary of IFT approves the provisions to ensure that from January 1°, 2015, the concessionaires will meet efficiently with the obligation to not run out charges for national long distance calls to their users

• The resolution adopted today was strengthened by the contributions received by this regulatory body during the public consultation process

• It is established that the whole country will be considered as a single Local Service Area

• Telephone service providers may only register or maintain local service rates

• The same dial is transiently maintained, but cannot be charged as national long distance

• The selection service by pre-subscription is eliminated for national long distance and only prevails for international calling service

In extraordinary session, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved the arrangements to be met by concessionaires, holders and authorized, so that from the first of January, 2015 they will effectively comply with the obligation under the Law to do not charge their users for long distance calls with national destination.

The Law provide that users benefit from the elimination of domestic long distance charges from January 1°, 2015, the provisions expressly provide that from that date all the national territory will be considered as one local service area.

As a result of this, all calls originated within the country should be considered as local service calls. To ensure that there are no long distance fees to users of telephony, end-user tariffs with prefix 045 will have the same rates for calls with code 044. Similarly, user fees for calls with prefix 01 and 02 should be the same as those for calls that are marked with 7, 8 or 10 digits if directly.

So, as of January, 1° of 2015, regardless of dialing scheme that users use, the concessionaires must apply the local service fee applicable. This does not preclude that national long distance services rendered prior to that date may be billed and collected from users after January 1° of 2015.

In this regard, the provisions expressly state that concessionaires, holders and authorized only will be able to register or maintain local service rates, subject to the fees registered or have registered for international long distance.

To ensure this, it states that the concessionaires, authorized or holders to modify the conditions originally contracted as a result of the elimination of charges for national long distance, should inform users of these changes in terms of the provisions in Article 191 Section VIII of the Law.

To ensure that the removal of charges for long distance calls benefit users from January, 1° of 2015 ensuring the continuity of services, it is necessary to temporarily maintain the current procedures for marking and signaling messages that the public telecommunications networks in the interconnection are exchanging.

Thus, in domestic long distance, users should continue dialing prefixes "01", "02" for communications to fixed lines and "045" for links to mobile phones, however, if the company providing the service so permits, it will be possible to make such calls direct dialing 10 digits.

In any case, whether direct dialing prefix or 10 digit calls made within the country to any domestic destination will be charged to users at local rates. It is important to mention that, as required under the legal framework, in due course it will be determined the mechanism for migrating 10- uniform digit dialing.

In order to preserve the rights enshrined to users through Article 191 Section IV of the Law, regarding freely choose to their service provider and respect the will of the parties to existing contracts, the provisions maintain service selection by pre-subscription only for users that at the entry into force of the provisions that are issued through this agreement are pre-subscribed to any operator other than their local operator and exclusively for international long distance.

In the case of users who currently have the option of selecting an operator through service selection by pre-subscription or those who are receiving long distance service through direct links, the concessionaire that offers the service will remain responsible for completing the phone calls or delivery to a network or combination of networks that are able to complete them, irrespective of the destination of communications.

The resolution adopted today was strengthened by the contributions received by the regulatory body during the public consultation process that the provisions draft was subject to, so that the approved document serves to various views expressed by the general public and to telecommunications services concessionaires.

The Plenary of IFT approves to grant to SCT the experimental use concessions in the band 700 MHz

• These grants are intended to make field test of the Long Term Evolution (LTE) technology in order to start the deployment of the wholesaler shared network

• Approves the Work Program to reorganize the radio spectrum for radio and television

• Agree the elements to be included in the National Program of Radio Spectrum

• Submits the Methodology for developing cost models that will serve to calculate the costs of interconnection services in accordance with the Federal Telecommunications and Broadcasting Law

In extraordinary session, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) decided to grant an only concession to private use and granting to use, develop and use of frequency bands of the radio spectrum for private use for experimentation in the 700 MHz band in for the Secretariat of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) in Mexico City (borough Azcapotzalco); Cuautitlán Izcalli, State of Mexico; Acapulco, Guerrero; Guadalajara, Jalisco and metropolitan area of Monterrey, Nuevo León.

Both awards are intended to conduct field tests of Long Term Evolution (LTE) technology in the 90 MHz frequency band 700 MHz, in order to start the deployment of shared wholesale network to Article Tenth refers Sixth Transitory Constitutional Reform Act, which established that the State, through the Federal Executive, in coordination with the IFT, ensure the installation of a shared public telecommunications network that promotes effective access of the population to communication band broadband and telecommunications services.

Also, use for experiments with two pairs of channels 28 + 28 MHz to 15 GHz band needed was authorized to conduct field tests in the frequency band of 700 MHz, consisting of linking the base stations that provide access to this band microwave links point to point and be able to run tests to mobile data services over LTE technology.

According to the provisions of the legal framework, shared public network must have the following characteristics: a) initiate the installation before the end of 2014, and will be in operation before the end of 2018, and b) it will consider the use of at least 90 MHz of spectrum released by the transition to Digital Terrestrial Television (band 700 MHz) of the resources of the fiber optic backbone of the Federal Electricity Commission (Comisión Federal de Electricidad, CFE) and any other assets of the State it can be used in the installation and operation of the network.

It is noteworthy that the type of concessions in question, the Act provides an exception to competitive bidding procedures which provides generally for concessions commercial or private use, but for purposes of private communication. Thus, because these concessions requested by SCT are for private use for research purposes, the spectrum grants directly when there is availability.

On the other hand, in compliance with the constitutional mandate of conducting activities necessary to contribute to the objectives and targets set in the National Development Plan and other policy instruments related to the sectors of broadcasting and telecommunications stocks, the Plenary approved the items to be included in the National Program of Radio Spectrum and the Work Program to ensure optimal use of the bands 700 MHz and 2.5 GHz, under principles of universal, non-discriminatory, shared and continuous use.

The Resolution adopted by the Plenary will be sent to the Secretary of Communications and Transport to these items may be included by the Federal Executive in the National Spectrum Article Seventeenth Transient fraction V of Decree Constitutional Reform referred to in under the National Democratic Planning System.

The document on the National Program for Spectrum includes guidelines for the development and implementation of market mechanisms to ensure that spectrum is allocated optimally processes ensuring free competition.

In this sense, the specific objectives are:

• Increase the availability of radio spectrum, to promote greater competition, coverage, diversity and inclusion, connectivity and accessibility of telecommunications and broadcasting.

• Establish mechanisms to make available radio spectrum for use social concessions.

• Develop actions to identify and promote the efficient use of radio spectrum in the country.

• Establish tools and mechanisms for efficient management, reporting and monitoring of radio spectrum in the country.

For the development of this program, the IFT made a diagnosis on the management of radio spectrum, which includes the following items: a) availability of spectrum for commercial, public and private uses; b) availability of spectrum for social purposes; c) efficient use of spectrum, and d) tools and mechanisms for management, reporting and monitoring of the spectrum.

The content of the approved proposals provide guidance for the implementation of regulatory measures by the IFT in coordination with the Federal Executive, which must abide by actions aimed at use, development and exploitation of this resource in the country.

Concerning the Work Program to ensure optimal use of the bands 700 MHz and 2.5 GHz under principles of universal, non-discriminatory, shared and continuous use, the IFT established two distinct components, as follows:

1. Frequency band 698-806 MHz (700 MHz band), which has been identified as the first digital dividend in the Americas region, i.e., that this portion of spectrum used for the provision of broadcast television services, and is in the process of liberation by the transition to Digital Terrestrial Television (DTT), will be used for mobile broadband services, in accordance with their identification by the International Telecommunication Union (ITU) for International Mobile Telecommunications (IMT).

The use and development of this band aims to promote effective access of the population to communication and broadband telecommunications services through the installation of a Public Network Shared, whose installation shall be guaranteed by the Federal Executive in coordination with the Institute.

2. Frequency band 2500-2690 MHz, which was originally intended for service provision restricted television and audio microwave in major cities and their conurbations. This band was identified by ITU as an IMT band, why it is considered necessary to carry out a reorganization process in order to achieve the deployment of broadband services.

Also in accordance with the provisions of Eighteenth Transitory Article of the Decree of the Federal Telecommunications and Broadcasting Law, which sets a deadline of 180 days after the entry into force of the legal framework for the issuance of the Work Program to Reorganize the Radio Spectrum to Radio and Television Stations, the Plenary approved the respective program, whose objectives are: to ensure the development of relevant markets defined by the IFT in the broadcasting sector, migration of the greatest possible number of stations dealers in the AM FM band, and strengthening the competitive conditions and the continued provision of services.

This Work Program issued by the Institute contains specific actions with deadlines and authorities responsible for implementation:

1) Availability of spectrum in the AM band and feasibility of optimization

• Diagnose the spectral availability in the AM band in the country by area or geographic region. Following the implementation of AM-FM Agreement necessary to identify the amount of released and available for possible spectrum rescheduling.

• Carry out the necessary studies aimed to identify ways to optimize the use of the band, including 100% digital transmissions.

• After public consultation, issuing general provisions which if required.

2) Operation of FM stations sound broadcasting in the same population, with gaps between major carriers below 800 kHz

• Make the necessary technical studies to test the operation of FM broadcasting stations with less than 800 kHz among its main carrier separations, including the use of digital technologies.

• After public consultation, issue general regulations for the efficient use of the band with new considerations.

3) Evaluation of alternatives for the migration of radio stations in AM to FM

• Define and evaluate regulatory alternatives for concessionaires operating radio stations AM may have operations in the FM band.

• After public consultation, implement alternatives, if any, have been found to be viable for the migration of radio broadcasting service from AM to FM.

4) Reorganization and relocation of TV channels below channel 37.

• Carry out the rearrangement of the band 470-512 MHz (TV channels 14 to 20), currently occupied by private radio systems to be used intensively for TV broadcasting systems.

• Optimize the use of allocated spectrum to the broadcasting TV channel 37 below.

• Make the necessary coordination processes with the Federal Communications Commission

(FCC) of the US to relocate TV channels below 37 who are in the coordination area.

• Implement the necessary measures to facilitate the relocation of DTT stations operating in excess of 37 channels.

• Establish and implement mechanisms to promote the use of the VHF band for DTT service.

• If determined necessary, agree to hold bilateral instruments in the field of television broadcasting or amendments to those already signed by Mexico with countries that share common border.

In this way, it complies with a month and a half in advance, the legal mandate that establishes the obligation to deliver the Work Program for the Reorganization of Radio Spectrum for Radio and TV Stations within 180 days from the entry into force of the Federal Telecommunications and Broadcasting Law.

Moreover, in the same session, the Plenary approved to issue the methodology for developing cost models that will serve to calculate the costs of interconnection services in accordance with the Federal Telecommunications and Broadcasting Law.

The methodology adopted is in line with the best international practices in the field and provides certainty for the industry to establish guidelines to be used by the regulatory body in developing cost models.

The methodology emphasizes the use of an incremental cost approach pure long-term services driving traffic and transit, thereby reducing the absolute differences in interconnection rates between fixed and mobile services encouraging greater competition and more efficient cost recovery.

It also considers the natural asymmetries networks present in the telecommunications industry in Mexico, as is the presence in the telecommunications industry a major economic agent, the market share of different auto thereto, the differences between fixed networks and mobile, and other factors.

Note that for the period between January 1° and December 31, 2015 a factor of gradualism that allow fixed and mobile auto adjust their business plans to the new regulatory environment will be used.

As reported in due course, this methodology involved a review of guidelines for developing cost model, a document that was subject to a public consultation from 6 to 26 November 2014, for the purpose of transparency and promote citizen participation in emission processes general provisions that generates the Institute, which the IFT could improve the content of the draft presented.

With this resolution gives full implementation of Article 131 of the Law to the effect that termination rates should take into account the natural asymmetries of networks and be sufficiently unbundled so the concessionaires' interfaces need not pay for components or network resources that are not required for the service to be provided.

CFE presents to IFT a request to authorize to give its grant to Telecomm to operate the backbone

• The process is progressing according to the work plan established in order to establish a robust backbone network that provides data transport to the telecommunications operators, generating greater coverage and competition in broadband services with higher quality and lower prices

• It is expected that by the end of March next year, the Plenary of the Institute will resolve and issue the appropriate relevant opinion; meanwhile, CFE and TELECOMM will work in drafting the transfer agreement and the other instruments necessary for its implementation

Today, the Federal Electricity Commission (Comisión Federal de Electricidad, CFE) gave the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) the request to authorize the regulatory body will give up its concession to install, operate and exploit a public telecommunications network for Telecomunicaciones de México (TELECOMM), as established in the constitutional reform in the matter enacted last year and on schedule.

In a ceremony headed by Commissioner President of IFT, MSc. Gabriel Contreras, who was accompanied by Commissioners. Dr. María Elena Estavillo Flores, MSc. Adolfo Cuevas Teja, MSc. Mario Fromow Rangel, Dr. Ernesto Estrada González and MSc. Luis Fernando Borjón Figueroa, holders of the CFE and Telecom, Dr. Enrique Ochoa Reza and Eng. Jorge Juraidini Rumilla, respectively, gave the necessary documentation for the processing of the procedure.

To witness the event were, by the Secretariat of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT), MSc. José Ignacio Peralta Sanchez, Secretary for Communications, and MSc. Monica Aspe Bernal, head of the Coordination of Information Society and Knowledge (Coordinación de la Sociedad de la Información y el Conocimiento, CSIC), responsible within the SCT of the project.

According to Fifteenth Transitory Article of the Constitution of the United States of Mexico, the CFE give in its concession totally to TELECOMM to install, operate and exploit a public telecommunications network and will transfer all resources and equipment necessary for the operation and exploitation of the concession, except for the optical fiber, rights of way, towers, posts, buildings and facilities.

CFE will ensure to TELECOMM the effective access and shared the infrastructure for efficient use, in order to achieve the proper exercise of its functions and the fulfillment of its objectives.

Meanwhile, TELECOMM have power and resources to promote access to broadband services, plan, design and execute the construction and growth of a robust telecommunications backbone with national coverage, as well as satellite communication and the provision of telegraph service. This is in accordance with the guidelines and agreements issued by the IFT.

It is expected that by the end of March next year, the Plenary of the Institute will resolve and issue the relevant opinion; meanwhile, CFE and TELECOMM work in drafting the transfer agreement and the other instruments necessary for its execution.

Deadlines for the development of the Core Network

"With the backbone and wholesale shared public network we can meet the objectives of having greater penetration, quality, cost and access in benefit of users. Corresponds to IFT do their work for the assignment is concrete and issue regulations to ensure that goals are met, "said Gabriel Contreras.

He stressed that, because this is a project of the largest, is crucial to coordinate actions between the authorities involved, which allow the Institute, as part of its powers, to regulate in the best way to make this a success for the Mexican State.

For his part, Dr. Enrique Ochoa Reza said that this request assignment fulfills the constitutional mandate reform in telecommunications, signed by President Enrique Peña Nieto, and the deadline established in the Memorandum of Understanding, to make delivery of the request before December 18.

He added that the CFE is committed to continue working to not affect, in any way, the services provided under concession, until the time TELECOMM completely take over the operation of the telecommunications network. Also, the CFE will keep active all coordination mechanisms for the proper functioning of the electrical infrastructure.

In turn, Jorge Juraidini Rumilla highlighted the excellent coordination that has been maintained between all agencies involved in the implementation on time and this constitutional mandate.

"Today we make a commitment to accept and enforce all objectives of the concession of the Core Network, and the provisions established by the IFT itself so that this great tool in telecommunications infrastructure translates into benefits for all Mexicans. We will be working to transfer this major asset of Mexico, is done in an orderly way and establish the necessary protocols with the CFE team to make it happen, "said Juraidini.

The operation and exploitation of Backbone Optic Fiber is one of the three pillars of the work done by Telecommunications Mexico, along with the operation of the Mexican Satellite System and promoting the financial inclusion through a network of nearly 1,700 Telecomm Telégrafos branches that are located strategically distributed throughout the country.

Mónica Aspe, responsible for the SCT of the Core Network said yesterday the results of the technical and administrative audit by PwC, in order to know the status of the assets of the CFE related to its concession were delivered and the current state of TELECOMM to receive, operate and exploit, in order to ensure that the transfer of the concession is carried out in an orderly and efficient manner. Aspe mentioned that the results delivered, provide valuable and necessary for the transition a success information.

In parallel, the SCT began the process of hiring experts for the development of an optimal plan for network expansion, which will consider the growth in capacity and coverage, so Mexico can have a telecommunications robust backbone, in the terms ordered by the Constitution.

With these actions, the institutions corresponding the compliance with these constitutional provisions reaffirm their commitment to the objectives of the reform in telecommunications will translate into more and better telecommunications services for Mexicans.

The IFT Plenary approves the Public Offering of Passive Infrastructure applicable to the Preponderant Economic Agent in broadcasting lead by Grupo Televisa

• With these measures the IFT ensures that infrastructure sharing services are provided in a fair and equitable manner, preventing the Preponderant Economic Agent (PEA) to incur in anticompetitive practices

• Is included an agreement framework where the conditions are established to guarantee legal certainty among concessionaires

In compliance with the provisions of the measures imposed by the Federal Telecomunications Institute (Instituto Federal de Telecomunicaciones, IFT) to the economic interest group formed by Grupo Televisa S.A.B., as well as its own independent affiliates, in its capacity as the Preponderant Economic Agent (PEA) in the broadcasting sector, the Plenary of the regulatory body authorized the Infrastructure Public Offering (Oferta Pública de Infraestructura, OPI).

This offer provides the set of conditions and information that is required from the broadcasting PEA to allow concessionaires applicants of broadcast television service, the access and use of passive infrastructure. With these measures the IFT prevents the PEA denies or impedes access to and efficient use of existing infrastructure, in order to promote more rapid deployment of new television channels with national coverage.

The OPI gives certainty to concessionaires in providing of sharing services of infrastructure because it contains terms established by the authority through a process of analysis, including the Agreement by which the Plenary of IFT solves the final terms and conditions of the first public offering of infrastructure of members of the Preponderant Economic Agent in the broadcasting sector of August 21 this year on the first public offering of infrastructure of PEA members in the broadcasting sector.

In that agreement it was required from PEA various information for this Institute to rule on the full compliance of the Passive Infrastructure Public Offering.

In view of the above, members of the PEA submitted information and documentation, it was considered insufficient to relieve all the requirements. That is why, taking into account the information provided by the concessionaires and analysis by the Institute, the Plenary of the IFT determined the terms, conditions and other information to be included in the OPI, defining the following:

• Passive Infrastructure will be provided to applicant concessionaires on a non-discriminatory and non-exclusive basis, considering the conditions offered to PEA's own operations.

• Providing services of passive infrastructure sharing is not conditioned to buy, purchase, sell or provide a good or service, additional or different services under the OPI, and not to buy, sell, trade or provide services provided or marketed by a third party.

• Framework Convention where the conditions are established to guarantee legal certainty among concessionaires is included.

• The services provided by the AEP and the procedures and deadlines are delimited to carry out the provision of those services, including access to the detailed information of the elements of passive infrastructure by applicant concessionaires.

The terms and conditions of the OPI were reported to the PEA last December 12, granting five working days for posting on their respective websites. If, within this period, the PEA has not published it, the IFT will do it on its website. The OPI will run for two calendar years from the first of January 2015.

With these measures the IFT ensures that infrastructure sharing services are provided in a fair and equitable manner, preventing the PEA to incur in anticompetitive practices, and contributes to the strengthening and consolidation of the process of competition in the broadcasting sector, as it promotes the deployment of the coverage of new operators in a more efficient manner.

Television stations serving in 12 cities of Tamaulipas are ready for the transition to Digital Terrestrial Television

The 14 television stations serving in 12 municipalities in the state of Tamaulipas are ready for final completion of the analog signals at 00:00 hours on January 14, 2015, so the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) will strengthen dissemination campaign in these locations, so that its inhabitants are properly informed that from that moment only will be able to receive digital signals in the broadcast television service. So said Commissioner President of IFT, Gabriel Contreras, at a press conference after holding a meeting with the governor of Tamaulipas, Egidio Torre Cantú and his team at the Government Palace of the entity, I find that also attended by Deputy Secretary of Communications of the Secretariat of Communications and Transportation (Secretaria de Comunicaciones y Transportes, SCT), José Ignacio Peralta; the Subsecretary of Development and Environmental Regulation of the Secretariat of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales, SEMARNAT), Cuauhtémoc Fernández Ochoa. He recalled that this regulatory body, in compliance with the provisions of the existing legal framework, determined that it is appropriate to cease analog transmissions of television in the coverage areas of television stations that serve the following Tamaulipas municipalities: Camargo, Guerrero, Gustavo Díaz Ordaz, Matamoros, Méndez, Mier, Miguel Alemán, Nuevo Laredo, Reynosa, Río Bravo, San Fernando and Valle Hermoso. This, after the SCT gave the IFT information which indicates having reached a penetration above 90% of the list of beneficiaries determined by the Ministry of Social Development (Secretaría de Desarrollo Social, SEDESOL).

In this sense, Gabriel Contreras said that another of the conditions that must be for the IFT determine the cessation of analog signals is to ensure that television stations are transmitting in digital channels. "Today all these stations are already broadcasting in digital format and we have verified that is allowed under the technical field parameters". He also highlighted the benefits of digital terrestrial television. "Digitalization in this service offers the ability to audiences to receive images and sound with greater fidelity, provides access to wider variety of content and involves more efficient spectrum use of mobile telecommunications services, which will result in increased competition and best prices to end users of such services." "Whoever that does not have a device for receiving the digital signal on next January 14 in this region of Tamaulipas will be left without watching television," said Contreras.

The Plenary of the IFT agrees that the termination of broadcasted television analog signals in Matamoros, Reynosa and Nuevo Laredo will be on January 14^th, 2015

• The SEDESOL defined the list of beneficiaries for the delivery program of TDT (Televisión Digital Terrestre) receivers implemented by the federal government 

• The SCT distributed receivers that are to meet more than 90% penetration among the beneficiaries of these established by SEDESOL and informed the IFT the compliance with the provisions of the legal framework 

• With this, the IFT determined that it is appropriate to conclude with the transmission of analog signals in coverage areas of television stations in the three cities in the northeastern border region 

• Broadcast TV service concessionaires and digital transmissions are already broadcasting in these areas

As provided in the Nineteen Transitional Article of the Federal Telecommunications and Broadcasting Law, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) must conclude the transmission of analog signals of broadcast television no later than December 31^st, 2015 by area of coverage, once this is achieved, in the appropriate area, a penetration rate of 90% of low-income households defined by the Ministry of Social Development (Secretaría de Desarrollo Social, Sedesol), with receivers or decoders capable of receiving digital signals. 

According to this legal arrangement is for the Secretariat of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) to implement programs and actions associated with the Policy Transition to Digital Terrestrial Television (Política de Transición a la Televisión Digital Terrestre) for the delivery or distribution of the receiving equipment or decoders as well as to perform the accreditation of the penetration that the Policy appoints. 

Thus, the Article 18 of the TDT Policy stipulates that to the Plenary of IFT corresponds to solve that it is appropriate to fix the termination of analog broadcasting, once the SCT provides the information stating that they have reached a penetration level of receivers or decoders capable of receiving digital broadcasts in 90% or more in the low-income households defined by Sedesol in each coverage area. 

In addition to this, to determine the completion of the analog signals is required that digital transmissions are made in the entire area of corresponding coverage. 

When both assumptions are met, the IFT will determine the date and time of the termination of analogue transmissions as appropriate, which shall be considered in a business day, between the date of its determination and making this a period of at least four weeks, so that during this period can be informed the public about the transition to digital television. 

In this sense, on November 21^st, 2014, the SCT, through the Sub-secretariat of Communications, sent to the IFT the information on the penetration achieved in various areas of coverage of the Northeast Frontier Region (Matamoros, Tamaulipas and Nuevo Laredo) and contains the following:

i) The number of low-income households defined by Sedesol per coverage area of each broadcast television station;

ii) the number of low-income households defined by Sedesol in which capable receivers for receiving digital broadcasts coverage area of each broadcast television station have been delivered; and,

iii) the percentage of penetration with suitable receivers to receive digital transmissions in low-income households defined by Sedesol in each coverage area of each broadcast television station.

Penetration by TV station (main and complementary)

*Note: The number of households must not be summed up because many of them are provided of the service by more of one TV station.

Additionally, the IFT corroborate the current relationship of digital television broadcast transmissions under the authorized parameters on each of the aforementioned stations transmitting in Nuevo Laredo, Matamoros and Reynosa.

Thus, in a special meeting held today, the Plenary of the IFT determined that the conditions laid down in the existing legal framework, consisting in the coverage areas of these TV stations is exceeded credited 90% receptors penetration with eligible for digital transmissions in low-income households defined by Sedesol, and that digital transmissions are made in the areas of station coverage.

Given this, the Plenary agreed that television stations with broadcast call signs: XEFE-TV, XHBR-TV, XHLAR-TV, XHLAT-TV, XHLNA-TV, XHNAT-TV, XHMTA-TV, XHOR-TV, XHRIO- TV, XHVTV-TV, XHREY-TV, XERV-TV, XHAB-TV and XHTAM-TV, in the cities of Nuevo Laredo, Reynosa and Matamoros, from Tamaulipas state, must definitively cease their analog broadcasts at 00 : 00 hours on January 14^th, 2015.

According to the provisions of the TDT Policy, henceforth, the IFT and concessionaires should inform the public about the date and the time for the completion of analogue transmissions of those seasons.

In this regard it is important to note that the Institute has conducted since July this year and to date, in dissemination on a national level, several actions through various media (newspapers, magazines, radio and TV stations, Internet portals and social networks), with which it has informed the public about the imminent conclusion of analogue transmissions in the country.

The transition to digital terrestrial television involves a process of modernization in this service, with various benefits to the population, such as the receiving of images and higher fidelity sound and / or resolution that currently allow analog transmissions and greater variety of access content through multiprogramming, among others.

In addition, the transition to this technology impulses rational and planned use of radio spectrum and better use of the 700 MHz band for the Deployment of International Mobile Telecommunications (IMT) is achieved, which could translate into greater competition in the mobile telephony sector and best prices to end users of those services.

El Instituto Federal de Telecomunicaciones informa respecto al pago de la contraprestación por la segunda cadena nacional de televisión radiodifundida a cargo de Grupo Radio Centro, S.A.B. de C.V.

• GRUPO RADIO CENTRO, S.A.B. DE C.V no efectuó el pago de la contraprestación en la Licitación No. IFT-1.

GRUPO RADIO CENTRO, S.A.B. DE C.V, Participante Ganador en la Licitación No. IFT-1, anunció que no efectuó el pago previsto en las Bases de Licitación para el otorgamiento de los títulos de concesión.

Lo anterior traerá como consecuencia que en términos de las propias Bases de Licitación quede sin efectos el fallo y se declare desierta la Licitación respecto de la Cadena Nacional de la cual fue declarado Participante Ganador GRUPO RADIO CENTRO, S.A.B. DE C.V. Asimismo, el Instituto procederá a la ejecución de la garantía de seriedad por $415,000,000 (cuatrocientos quince millones de pesos) otorgada por dicho grupo durante el proceso, en términos de lo dispuesto por las propias Bases de Licitación.

La decisión de no efectuar el pago respecto de las ofertas presentadas por los postores en el proceso, corresponde exclusivamente a éstos, en tanto que al Instituto le corresponde aplicar las consecuencias jurídicas previstas en las Bases de Licitación, publicadas desde el 7 de marzo de 2014.

En cumplimiento de su mandato de velar por el desarrollo eficiente de los sectores de telecomunicaciones y radiodifusión, así como el aprovechamiento eficiente del espectro radioeléctrico, el Instituto analizará en breve las acciones a seguir respecto de las bandas de frecuencias que han quedado disponibles.

The Federal Telecommunications Institute reports about the consideration payment for the second national broadcasted television network by Grupo Radio Centro, S.A.B. de C.V.

• Grupo Radio Centro, S.A.B. DE C.V. fail to make the payment of the consideration in the Tender No. IFT-1

Grupo Radio Centro, S.A.B. DE C.V., Winner Participant in the Tender No. IFT-1, announced that no they did not make the payment referred to in the Tender for awarding the concession titles.

This will mean that in terms of the own Tender, the ruling runs out effects and is declared void regarding the National Network in which Grupo Radio Centro, S.A.B. DE C.V. was declared Winner Participant. Thus, the Institute proceed to the execution of the bid bond for $ 415,000,000 (four hundred and fifteen million pesos) granted by the group during the process, in terms of the provisions of the Bidding.

The decision to not make the payment in respect of the bids submitted by the bidders in the process, belongs exclusively to them, while the Institute is responsible for implementing the legal consequences mentioned in the Tender Bases, published since March 7th, 2014.

In fulfilling its mandate to ensure the efficient development of telecommunications and broadcasting sectors, as well as the efficient use of the radio spectrum, the Institute will swiftly discuss the actions to take regarding the frequencies bands that have become available.

The IFT releases its first activities report for the third quarter of the year

• Starts the first phase of a study of radio spectrum occupancy to monitor their use in various areas of the country

• Emits new Policy on Transition to Digital Terrestrial Television (Televisión Digital Terrestre, TDT)

• Modifies the bidding to reduce the time and to its conclusion to be within the first quarter of 2015

• Make 104 inspections and verification operations, which led to the beginning of 28 procedures for imposing sanctions

• Publish the new Organic Statute and performs the institutional redesign of its structure according to the functions of the new regulatory framework

In the third quarter, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) undertook various measures to promote better conditions in the provision of telecommunications and broadcasting services in favor of competition, and therefore, users. This, in compliance with its legal mandate and attachment to its 2014 Annual Work Program.

The IFT implemented and tracked the specific measures to be met by companies that were determined as Preponderant Economic Agents (PEA) in the telecommunications and broadcasting sectors. With these obligations, is prevented to affect competition for these industries and promotes users to receive services under better conditions.

In this regard, the regulatory body approved the various formats of short message that Telcel should send to their users in prepaid and postpaid schemes, through which local service tariffs will be informed, long distance, the price per minute to frequently used numbers, SMS rates¹ and Megabytes, and the e-mail address and toll-free number where information may be consulted about rates applicable to its operations. The company will start sending these messages later this October 29th.

Regarding the PEA in broadcasting, the Institute decided the final terms and conditions of the Tender Offer Infrastructure, which should be ready to apply from the first day of January 2015.

Another major actions of IFT in the third quarter was the modification of the bases and call for tender frequencies to form two new digital television broadcast networks, among whose is notably a change to the dates of the process to reduce the time and completion is within the first quarter of 2015.

In the third quarter, the Institute issued the ruling of the International Public Tender for the acquisition of the "Technical System Testing the Radio Spectrum" (Sistema de Comprobación Técnica del Espectro Radioeléctrico), which will allow the expansion of the National Radio Monitoring Network (Red Nacional de Radiomonitoreo, RENAR) of the Institute, which primordial aim is to monitor the spectrum in various parts of Mexico.

For this process 20 transportable mobile stations were acquired, as well as an independent control station for controlling these, which will complement the team that currently has the IFT, composed of a Regional Control Centre, an attended fixed station and ten mobile units of radio monitoring.

With such equipment radio monitoring activities and monitoring use of radio spectrum will be strengthened; work on location signals are also conducted in strategic locations nationwide.

Moreover, as a result of the entry into force of the new Federal Telecommunications and Broadcasting Law, the IFT issued a new Organic Statute which involved a redesign of its institutional structure, which led to the creation of new areas such as the Center of Studies, the General Coordination of User Policy, Strategic Planning, International Affairs and Regulatory Improvement as well as the Radio Spectrum Unit and Media and Audiovisual Content Unit.

Meanwhile, the Regulatory Policy Unit, the Concessions and Services Unit (formerly Services to the Industry Unit), and Compliance Unit (formerly Monitoring and Verification Unit), were redesigned with a convergent approach, which will allow greater specialization in the design and implementation of regulatory policy addressed to the sectors of telecommunications and broadcasting.

With regard to the projects implemented in coordination with the Federal Government, the Plenary of the Institute issued the new Policy for Transition to Digital Terrestrial Television (Televisión Digital Terrestre, TDT) which provides guidelines to be followed by concessionaires and license holders of this service to conclude the transmission of analog television signals on or before December 31, 2015.

For actions monitoring and verification by the Institute to ensure that concessionaires comply with their obligations under the concession agreements and other legal systems, a total of 104 inspections / verification are performed. As a result, 28 administrative procedures for imposing sanctions were initiated and 76 are in the process of opinion.

In terms of economic competition, the IFT took eight investigations for monopolistic practices, initiated proceedings for declaration of substantial market power, which is under investigation, by the Investigating Authority, and issued 34 opinions regarding concessionaires operations.

The Antitrust Unit substantiate various methods among which there are some that resulted in sanctions, as the corresponding to Corporativo Vasco de Quiroga, S.A. de C.V., for breach of the provisions of the conditions to which the authorization of a notified concentration was clamped with a fine of 53 million 838 thousand pesos and on Teléfonos de México, S.A.B. de C.V., with a penalty for 49 million 320 thousand pesos for the commission of relative monopolistic practice in the market for long distance call termination service in its public telecommunications network.

In the quarter reported, the IFT received a total of 178 requests for access to information, of which 67% had the access, 22% were refused for the information was reserved or non-existent, 9% were granted public versions were delivered and 2% was determined to discard requests.

The Transparency Council met on five occasions in the period from July to September in four review petitions that were presented at different times, an appeal was dismissed in May and two more presented in June were discontinued. Of the four review resources resolved, two were resolved in a favorable direction for the appellants, instructing the relevant areas to give access to the requested information.

The full text of the quarterly report is available on the website of the Institute in the following link:

https://www.ift.org.mx/iftweb/wpcontent/uploads/2014/09/

3er_Informe_Trimestral_P_IFT_151014_363.pdf

¹The third quarterly report covers activities from July 1° to 25 September 2014.

The Plenary names the IFT public servants that will chair and coordinate the Technical Committee on Portability meetings and works

• It appoints the Commissioner Fernando Borjón as chairman of the Technical Committee on Portability

• In the next five days the first session will be held, where the issue concerning the definition of the technical parameters for the implementation of the new rules portability is going to be addressed

In extraordinary session, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved yesterday the appointment of public servants who are responsible for chairing the Technical Committee on Portability. Compliance with this resolution is given to the provisions of the Second Transitional Rules of Number Portability, published on November 12 this year, in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF).

As Chairman of the Committee was designated the Commissioner Luis Fernando Figueroa Borjón, and Rafael Eslava Herrada was appointed as his alternate. While Felipe Alfonso Hernández Maya will be the Technical Secretary, and Nimbe Leonor Ewald Arostegui, will be his alternate.

In accordance with the 7th Rule of the Rules on Number Portability, the Committee will be chaired and coordinated by the IFT, and corresponds to the Plenary to appoint civil servants who will hold the positions of President and Technical Secretary of the Committee.

This Committee is a consultative forum of technical nature, which also will include representatives of telecommunications service providers and by which the efficiency of portability and necessary actions for the proper management of promoting the numbering and marking of telecommunications services that use them.

In this group there will be projects within which the respective adjustments and to define the technical parameters to apply to the processes of communication and information exchange between companies systems involved in a porting process.

The Chairman of the Committee shall convene within five calendar days after their appointment, a Telecommunications Service Providers with numbers assigned to celebrate the first working session.

Thus, the Committee is established as the first to execute the tasks aimed at the proper implementation of Number Portability Rules issued by the regulatory body.