Instituto Federal de Telecomunicaciones

The Federal Telecommunications Institute contributes to the 2015 budget saving effort

• The Plenary approved the Austerity and Budgetary Discipline Guidelines and a Setting to its budget to generate savings and contribute to prosecutor accountability measures of the Federal Executive

• Issues the Compensation for IFT Public Servants Handbook corresponding to 2015 fiscal year

• Name the Commissioner Adriana Labardini as representative of the Plenary before the Committee on Ethics and Inclusion, under the Institute's Workers Code of Conduct

• Delivers a favorable opinion on economic competition to eight processing permits to operate cultural radio stations in different cities across the country

In order to contribute to the efforts of the Federal Government for budget savings, the Federal Telecommunications Institute (IFT) adopted the Austerity and Discipline Budget Guidelines; as well as a Fit to the Budget for the 2015 fiscal year.

The Approved Guidelines are consistent with the austerity provisions laid down in the Expenditure Budget of the Federation 2015, to reduce spending on administrative activities and support.

Similarly, setting the Institute's budget is consistent with the measures of fiscal responsibility implemented by the Federal Executive, resulting from the decrease income determined in the of the Federation Revenues for Fiscal Year 2015 Law, and the necessary contribution of autonomous entities ordered by the Federal Budget and Fiscal Responsibility Law.

The combination of both measures implies that an adjustment to the IFT budget will be made by an amount of 85 million 440 thousand pesos, equivalent to 4.3% of its budget amount approved for this year. It is important to note that this measure will not affect the goals of compliance of the substantive programs of the Institute.

The approved guidelines include measures of austerity and discipline in spending on personal services and operating expenses. Some of them are:

• Generate savings in wages and salaries as well as spending in eventual placement and fees,

• Reduce spending on national committees and abroad on the amounts originally approved as well as the number of participants to the minimum required,

• Reduce spending on social communication, subject to the provisions of Article 17 of the 2015 Budget Expenditure of the Federation,

• Implement a sustainability program in the consumption of electricity, water, paper and office supplies, through actions to reduce, reuse and recycling, in order to promote culture of environmental responsibility and rational use of resources,

• Promote consolidated procurement of goods and services and seek to incorporate the consolidated contracts and framework agreements to carry out the agencies of the Federal Public Administration.

The Institute shall publish on its Transparency website no later than 30 calendar days completed the corresponding quarter, the progress, measures and actions taken and the amounts of savings obtained.

Moreover, the Plenary approved the Remuneration Manual for IFT public servants for 2015 fiscal year, which aims to establish the general provisions to regulate perceptions and performance of its staff, in accordance with their authorized budget and what is established on its Professional Service System. It shall enter into force on the day following its publication in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF).

At an extraordinary session held this day, the Plenary agreed to appoint Commissioner Adriana Labardini Inzunza as its representative on the Committee on Ethics and Inclusion under Workers Code of Conduct of the Federal Telecommunications Institute, charge that will have a one year duration.

It also decided to issue a favorable opinion on economic competition, processing eight permissions to install and operate cultural radio stations in the following cities: Ciudad Victoria Durango, Durango; Chihuahua, Chihuahua; Huatulco, Oaxaca; Ciudad Acuña, Coahuila; Sabinas, Coahuila; Saltillo, Coahuila and Tulancingo Hidalgo. The applications were submitted in terms of the Federal Radio and Television Law to the Institute, which was repealed in 2014 when entered into force the current Federal Telecommunications and Broadcasting Law.

Notwithstanding the foregoing, the existing legal framework provides that all procedures should be processed under the law in force at the time of its inception. Thus, opinions emitted on economic competition matters constitute a requirement that applicants must obtain and not a decision about a possible grant.

IFT Plenary resolved several issues on telecommunications and broadcasting matters

• Determine interconnection terms not agreed between NII Digital and Grupo Iusacell companies

• Agreed to declare the loss of assets for the benefit of the Nation, derived from the insurance of equipment for the use of radio spectrum without license, permit, authorization or frequency allocation in three locations in the country

• Approved issuing three concession titles to mark the granting of the endorsement of the concession to use, develop and use three radio stations

• Resolved to deny the extension requested for the duration of the concession of two restricted television operators’ service

The Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) solved in regular session yesterday, three interconnection disagreements between NII Digital, S. de R.L. de C.V. and businesses Comunicaciones Celulares de Occidente, S.A. de C.V., Sistemas Telefónicos Portátiles Celulares, S.A. de C.V., Telecomunicaciones del Golfo, S.A. de C.V., SOS Telecomunicaciones, S.A. de C.V., Portatel del Sureste, S.A. de C.V., Iusacell PCS, S.A. de C.V., Iusacell PCS de México, S.A. de C.V. and Operadora Unefon.

In these three resolutions the interconnection rate was determined that NII Digital well as Iusacell and Unefon shall paid mutually the switched termination services under the "calling party pays" in the following terms:

• During 2013, it will be $ 0.3144 pesos per interconnection minute.

• During 2014, it will be $ 0.3199 pesos per interconnection minute.

• By 2015, from February 18^th to December 31^st, 2015, it will be $ 0.2505 pesos M.N. by interconnection minute. For the period from January 1^st to February 17^th, 2015 the rate must be extended as set by the Institute for 2014.

The consideration to be paid will be calculated based on the actual duration of the calls, without rounding to the next minute.

In today's session, the Plenary also decided to declare the loss of assets for the benefit of the Nation, derivative of the assurance of equipment for the use of radio spectrum without license, permit, authorization or assignment in three locations in the country: 1870 MHz to 1875 MHz in Tuxtla Gutierrez, Chiapas; 154.000-159.550 MHz and 161.925-156.925 MHz in Zacatecas, Zacatecas and 152.1170 MHz, in the municipality of Huixquilucan, State of Mexico.

It was also agreed to issue three concession titles to mark the granting of the endorsement of the concession to use, develop and use the following radio stations:

1) 107.1 MHz, with callsign XHACN-FM, in León Guanajuato, for Radio Fórmula, S.A. de C.V. regional chain.

2) 91.3 MHz, with call sign XHEOB-FM in Pichucalco, Chiapas, in favor of XEOB Promotora de Radio, S.A. de C.V.

3) 90.1 MHz, with call sign XHSMR-FM, in Villa de Pozos, San Luis Potosi, in favor of Fórmula Radiofónica, S.A. de C.V.

The Plenary agreed to deny the extension of two concession contracts to install, operate and develop a public telecommunications network to provide the restricted television service due to the fact that concessionaires did not meet the requirements of the Law for the request of renewal. The first negative extension relates to a concessionaire who delivers services in various locations in the state of Veracruz and the second corresponds to a concessionaire that delivers the service in a town in the state of Jalisco.

In order to safeguard the rights of users receiving public telecommunications services, the Plenary of the Institute determined, inter alia, the following:

a) Allow the continuity of services for a period not exceeding 60 calendar days.

b) Within the first 15 days of this period, those concessionaires shall inform users of the suspension of the services provided and communicate the possibility to hire restricted TV service to other concessionaires who provide service in their area, if they decide so, and

c) They shall reimburse subscribers, in the proceeding cases, the quantities they had paid an advance and they have not as compensable with other debts by subscribers themselves.

IFT Plenary meets the legal mandates within 180 days from the entry into force of the Federal Telecommunications and Broadcasting Law

• Gives Multiprogramming Guidelines, Studies for Child Audience Radio Supply and Programs Consumption, broadcast and Restricted TV, Definition of Points of Interconnection and Institute's Professional Service System

• These resolutions are added to those already approved in previous dates, which was issued on the one hand, the Work Program to Reorganize the Radio Spectrum for Radio and Television Stations, and on the other, was appointed and installed the Advisory Council

• With the issuance of the six agreements, the regulatory body fulfills the orders in a timely manner

This February 9^th within 180 calendar days established in the Federal Telecommunications and Broadcasting Law, was fulfilled after its entry into force for the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Plenary to adopt specific regulatory measures that will result in benefits for service users both broadcasting and telecommunications in the country.

Thus, the Plenary of the Institute approved at an extraordinary meeting on Monday the offer and Studies for Child Audience Radio Supply and Programs Consumption, Broadcasting and Pay Television, the General Guidelines for access to multiprogramming, defining interconnection points to the public telecommunications network of the Preponderant Economic Agent PEA (Agente Económico Preponderante, AEP) and the provisions for which the Institute's Professional Service System is established.

Studies for Child Audience on Radio Supply, broadcasted and restricted TV Programs Consumption Thirty-Sixth Transitional Article of the Federal Telecommunications and Broadcasting Law said that the Institute conducted within 180 days of its entry into force, the relevant studies to analyze—whether it is necessary— to establish mechanisms that promote and encourage concessionaires to include a bar program that aimed at children in the culture, sports, environmental conservation, respect for human rights, the best interests of children, gender equality and non-discrimination.

In the embodiment of Studies for Child Audience on Radio Supply and broadcasted and restricted

TV Programs Consumption, sources of qualitative and quantitative information from public and private sources were used, selected from lifting characteristics, frequency in the completion and publication in Mexico.

The studies provide elements to identify the variables involved in media consumption by girls and boys in Mexico. They are divided into five chapters:

• Socio-demographic and psychographic profile of the universe of children in Mexico to understand, in the first instance, the dimension of which must occupy media and the State.

• Landscape of supply and consumption of broadcast television among children in Mexico.

• Offer and consumption of pay television by children in Mexico.

• Offer and consumption of radio programs by children.

• Review of incentives to produce content for children in different countries, aiming to meet different schemes that could enrich decision making.

Among the analyzed data highlights that in 2014 children in Mexico spent watching television an average of 4 hours 34 minutes a day. This figure fell slightly, in contrast to the trend observed in the previous seven years of growth.

Furthermore, the analysis of content consumption by children 4-12 years shows that most of the programs they are watching, are not content designed for them.

Stresses that the program offerings for young audiences, 74% are caricatures occupying this seventh with respect to genders transmitted in broadcast television after magazines, news, movies, marketing, cultural and sports.

Moreover children from all socioeconomic levels have increased their presence in the restricted television over the years. Being that it offers up to 10 channels of exclusive content for them.

Note that radio both supply and demand for content aimed at children is scarce, only 3%, compared with 15% who registers on television.

Derived from analysis of the data obtained from these studies, the IFT Plenary determined that it is necessary to have mechanisms to encourage concessionaires to include programmatic bars aimed at children, whose contents promote a whole culture, sports are provided, the environmental conservation, respect for human rights, interests childhood, gender equality and nondiscrimination.

This bars incorporate more national production for that grant broadcasting content own national identity and values.

The Plenary agreed to forward a copy of the competent authorities in the regulation of content and instructed Media and Audiovisual Content Unit to achieve coordinated work with other government and academia entities to determine the mechanisms that the Law refers.

Guidelines for Multiprogramming

Moreover, under Article 158, paragraph III and Transitory Thirty Third Article of LFTR, the Plenary of the Institute approved the issuance of the General Guidelines for Access to multiprogramming, which will enter into force the day after its publication in the Federal Official Gazette.

Multiprogramming is the distribution of more than one channel of programming on the same broadcast transmission channel, which represents the possibility of transmitting a larger number of program content through the same concession spectrum resource. The document adopted by the Plenary was preceded by a process of public consultation, held from December 23^rd, 2014 to January 14^th this year, in which eight comments and opinions that contributed to strengthen it received.

The guidelines approved by the Plenary contemplate the requirements to obtain authorization for access to multiprogramming and comprehensive operating conditions, according to the competition principles and technical quality, guaranteeing the right to information and taking particularly national and regional concentration of frequencies.

Access to multiprogramming is voluntary on the part of broadcasting concessionaires, therefore, to request and obtain, they undertake to comply with all provisions applicable to the matter.

The resolution of the Plenary establishes the obligation to concessionaires requesting multiprogramming to transmit at least one channel of programming in quality High Definition (HD) and no provision for payment of consideration for this purpose.

Broadcasting concessionaires may freely enter into contracts for access to broadcast channels in multiprogramming in market conditions with third parties who may have the status, among others, of National Independent Programmers, National Programmers, Foreign Programmers and Broadcasting Concessionaires.

In cases of concessionaires belonging to a Preponderant Economy Agent or with substantial power, the Institute shall not authorize the transmission of a number of broadcast multiprogramming channels top 50% of all programming channels other authorized concessionaires that are broadcast in the region of coverage, in accordance with the provisions of Article 158, Section II of the Law.

The Institute will resolve the request for multiprogramming accessin a maximum of 60 working days from the day following that on which the application is submitted.

Public networks interconnection points

Moreover, the Institute Plenary defined points of interconnection to the public telecommunications network of PEA, in accordance with Twenty-fifth Interim Article of the Decree which Federal Telecommunications and Broadcasting Law is issued. It also approved add and repeal various provisions in telecommunications and broadcasting matters.

The definition of the points of interconnection to the public network of PEA will allow the public telecommunications networks concessionaires to carry traffic exchange interconnection points as technically feasible, thus providing equal conditions. Interconnection points will be available to all concessionaires, which may select the points at which, according to their network architecture, traffic volume, and presence, will conduct the exchange.

The draft of this subject was submitted to public consultation from January 20^th to February 3^rd, 2015, receiving 12 appearances.

For interconnection by TDM protocol, 198 points corresponding to fixed telecommunications interconnection services and 46 points corresponding to interconnect mobile telecommunications services are defined.

Also, 11-point IP network to the Preponderant Economic Agent corresponding to mobile and fixed telecommunications interconnection are defined; of which 3 (Mexico, Guadalajara and Monterrey) shall come into operation at 180 days and 360 days the rest.

The principles considered for the definition of these interconnection points are: technical feasibility, presence of concessionaires in those points, geographical distribution and deployment of infrastructure in those points; noteworthy that interconnection points defined allow the exchange of traffic from any source or destination within the country.

The agreement will enter into force on the day following its publication in the Federal Official Gazette.

Professional Service System

In accordance with the provisions of Fourteen Transitional Article of the Law, the Plenary approved the Provisions amending the Professional Service System, which contains the necessary elements established for the Institute to have its own system of personnel management, built-sighted and based on three main principles on the matter: attracting, retaining and developing talent, in accordance with best management practices and staff development to stimulate the creation of an organizational and high performance work environment, professionalism, results orientation and dedication to public service.

This, in order to perform efficiently the functions of IFT as a regulatory body for telecommunications and broadcasting, as well as authority for economic competition in these sectors.

Thus, the following interrelated processes are contemplated: personnel planning; income; training and development; management and performance evaluation; rights, obligations, compensation and benefits scheme; and labor discipline.

The guiding principles of the Professional Service System are: legality, efficiency, productivity, objectivity, quality, impartiality, merit competence, non-discrimination, gender equality and equal opportunities.

Also, as reported in due course, this Monday the Advisory Council was installed, composed of 15 fees, expert members in telecommunications, which was elected at the plenary session on February 3^rd and which will serve as an advisory body to the principles settled established in articles 2nd, 6^th and 7^th of the Political Constitution of the Mexican United States, as provided in Fifteenth Transitory Article of the Law.

With the regulatory actions mentioned, together with the agreement to issue the Work Program for Reorganizing the Radio Spectrum to Radio and Television Stations, adopted in December 17^th, 2014 plenary session, the IFT comply in a timely manner with the legal mandate to issue them within 180 days from the entry into force of the Federal Telecommunications and Broadcasting Law.

The first IFT Advisory Council is installed

• It is an advisory body composed of 15 renowned and experienced specialists

• The IFT Plenary approved the appointment of the members, in accordance with the provisions of Law

• It is a plural and interdisciplinary group of men and women who have served in the public and private sectors as well as academia and civil society organizations

• They shall hold office for one year with possibility of extension for similar periods indefinitely

Today the Advisory Council of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT), which consists of 15 renowned specialists in telecommunications, broadcasting, economic competition, freedom of speech and public policy was installed.

The members of this advisory body were appointed by the IFT Plenary in an extraordinary session held on February 3rd, after the analysis of various profiles, considering his extensive experience and proven ability in matters within the jurisdiction of the Institute, accordance with the provisions of Article 34 of the Federal Telecommunications and Broadcasting Law.

The Advisory Council members form a plural and interdisciplinary group of men and women who have served in the public and private sectors as well as academia and civil society, so that their contributions will help the IFT meets with its role in promoting the efficient development of telecommunications and broadcasting in the country.

Thus, the IFT Advisory Council is composed of the following experts:

The IFT Plenary appointed Juan José Crispin, as Secretary of this body. The appointments will be valid for one year which may be extended for similar periods indefinitely. Corresponds to the Advisory Council to elect their president by majority vote, who shall hold office for one year and may be reelected, as set out in the Law.

IFT reports on the process of tender two networks of digital broadcast TV

With regard to the bidding public process to concession the use, development and commercial exploitation of transmission channels for the provision of public broadcast digital television service, in order to form two networks with national coverage, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) reports that on January 30th it was received a letter from the legal representative of Centro de Información Nacional de Estudios Tepeyac. S.A. de C.V., in which it announced the company's decision to not continue in this bidding process, to suit its interests, so formally submitted its resignation.

By personal appearance at the offices of the Institute today, the legal representative of the company confirmed the contents of the document.

The tender process continues and is currently at the stage of "Dictation and “Certificates of Participation", this will end between March 5^th and 9^th this year, with notification of the respective Stakeholders Certificates of Participation who have complied with all the requirements of the bidding.

The third stage will start with the opening of the envelopes containing the Participants Coverage and Economic offers, which will be held on March 11^th. The issuance of the decision would not be later than March 19^th.

IFT Plenary approves the 2015 Annual Work Program

• The regulatory agenda includes 93 projects that are part of a comprehensive strategy that allows effectively regulate and promote competition in the sectors of telecommunications and broadcasting, for the benefit of users and audiences

• Stresses the implementation of studies and research to meet technological and market changes, through a vision of regulatory prospective

• Quarterly Report October-December 2014 of Activities was approved

The Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Plenary approved in extraordinary session the 2015 Annual Work Program (Programa Anual de Trabajo, PAT) in which the actions and regulatory policy projects that this regulatory body considers to develop this year are included.

In this work program is considered the development of projects that track the new regulatory policy implemented in 2014, advancing issues in process as well as new projects and implementation of studies and research in telecommunications, broadcasting and economic competition matters to address technological and market changes through a vision of regulatory foresight.

Altogether there are 93 regulatory agenda projects and 5 researches. Thus, 48% correspond to projects for continuing regulatory policy 2014, 46% are part of strategic themes 2015 and 5% are studies and researches for regulatory foresight.

The projects and activities are described in the document, which is now available for query on page https://www.ift.org.mx/iftweb/wp-content/uploads/2015/01/PAT-2015-vF.pdf are part of a comprehensive strategy that allows effectively regulate and promote competition in the sectors of telecommunications and broadcasting for the benefit of user and audiences. Besides, there will be measures to strengthen IFT internally, which will redound to improve their performance, to give greater certainty to regulated entities and, thus above, generate affordable prices, better quality of services and more options for users and audiences.

The focus of this year's agenda will move forward in fostering technological sectors of telecommunications and broadcasting convergence and modernization, and to protect the rights and interests of users and audiences.

The strategies that the IFT is going to follow this year will be:

• Institutional Strengthening

• Regulatory and Competence Policies in Telecommunications and Broadcasting sectors

• Spectrum Policy

• Infrastructure Deployment and Modernization

• Rights and Interests of Users and Audiences

• Regulated Industries Specific Regulations

IFT Plenary also adopted its Quarterly Activities Report for October December 2014.

Among the actions taken by the regulatory body, during the referred period, highlights the issuing of favorable opinion on economic competence matters over applications presented by eight interested in participating in the bidding for concessions of frequencies to form two new digital broadcast television channels with national coverage.

Also, last December the IFT Plenary approved the 2015 Use and Development of Frequency Bands Annual Program, whereby Spectrum Frequency Bands are determined to be tendered or who may be allocated directly; as well as the Agreement that determined the termination of analog broadcasting in the coverage areas of the 14 broadcast television stations serving in Nuevo Laredo, Reynosa and Matamoros, in Tamaulipas.

Moreover, in order to promote transparency and citizen participation, the Institute Plenary approved to undergo to public consultation the Guidelines for Collaboration Draft on Security and Justice matters that concessionaires must abide and, where appropriate, the authorized, for the cooperation with the competent authorities is effective and timely; and the technical and operational conditions Draft for effective unbundling of the local network of the Preponderant Economic Agent. Numerical Portability Rules were also approved, with which users of fixed and mobile telephony are allowed to change the provider, retaining the same telephone number that in a more agile and simple manner.

During the last quarter of 2014, the IFT published in the Federal Official Gazette, the provisions that concessionaires that provide public telecommunications services must comply to ensure that will benefit users from the elimination of charges to domestic long distance from January, 1^st, 2015, as well as the methodology for calculating interconnection costs; electronic system of interconnection applications and interconnection rates that will be in effect this year, in addition to the minimum technical conditions for the interconnection between concessionaires who operate public telecommunications networks.

Moreover, the Plenary of the Institute resolved in extraordinary session, four interconnection disagreements between concessionaires of public telecommunications networks and concessionaires belonging to the Preponderant Economic Agent PEA (Agente Económico Preponderante, AEP) in that sector.

Two of these resolutions refer to the interconnection conditions not agreed between Teléfonos de Mexico, S.A.B de C.V (Telmex), on the one hand, and Teléfonos de Noroeste, S.A. de C.V. (Telnor) on the other, with Mega Cable, S.A. de C.V. (Megacable). In both cases, the IFT established that fees for Switched Termination Services shall observe the provisions of Article 131 of the Federal Telecommunications and Broadcasting Law.

Also traffic termination/origination charges in transit to and from a third network, shall be:

a) From April 6th, 2014 to December 31^st, 2014, it must be observed the Asymmetric Tariffs Agreement that will be charged by the PEA.

b) For the period from January 1^st to December 31^st, 2015, it shall be on the provision of interconnection rates, applicable to 2015 approved by the IFT last December.

The IFT also agreed, inter alia, that Telmex and Telnor should give to Megacable peering through the SIP signaling protocol. They should also allow use of same interconnection link to study different types of traffic and deliver items to the efficient interconnection in defined deadlines.

Moreover, the IFT Plenary resolved the interconnection conditions not agreed between Radiomóvil Dipsa, S.A. de C.V. (Telcel) and Talktel, S.A. de C.V. Based on this, the first must give the second peering through the SIP signaling protocol and allow the use of a single interconnection link to study different types of traffic.

IFT Plenary approves the amendments to the General Guidelines for Retransmission of open TV signals in restricted TV systems

• The changes reflect the need to adapt the guidelines to the provisions of the Federal Telecommunications and Broadcasting Law

• Agreed to submit for public consultation the Rules Draft for authorizations granting in telecommunications matters under the Federal Telecommunications and Broadcasting Law

• Granted the first concession of public use for the STC management to provide the radio communication service to their strategic areas of operation, maintenance and safety

• Approved the Declaration of Principles of the Institute, from which public servants of this regulatory body will guide their work, consistent with the provisions of the legal framework governing and the Code of Conduct for Civil Servants of IFT

The Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) met in regular session, yesterday, to approve the amendments to the General Guidelines regarding the provisions of Section I of Eight Transitory Article of Decree amending and supplementing various provisions of Articles 6°, 7 °, 27, 28, 73, 78, 94 and 105 of the Political Constitution of the United Mexican States, in telecommunications matters, published in the Federal Official Gazette on February 27^th, 2014.

These amendments to the Guidelines on the retransmission of television signals broadcast on restricted television systems, reflect the need to bring them into provisions of the Federal Telecommunications and Broadcasting Law.

To do this, from December 1^st to 12^th, 2014, the IFT submitted for public consultation the Draft amendments to the General Guidelines, where 5 comments and opinions were received, which can be found on the website of the Institute.

In general, the Plenary amended Articles 1, 2, 3, 7, 11 and 12, second paragraph, fourth, sixth and seventh; 13, 14 and 16 and added Articles 5, second and third paragraphs; 6, third and fourth paragraphs and 12; eighth and ninth paragraphs.

Among the main changes approved include: the modification of Article 11 to clarify that broadcast signals will be broadcast for concessionaires of restricted television in each and every one of their packages and with the highest quality available. That is, if the signal broadcast is available in high definition, the concessionaire of restricted TV service shall offer it in their packages of High Definition (HD) and in Definition Standard (SD) for those without the HD package. If the broadcast signal is only available in standard definition, then the concessionaire of restricted television services will include it solely in the SD packages.

Moreover, the Plenary approved to submit for public consultation the Rules Draft for the granting of authorizations in telecommunications matters under the Federal Telecommunications and Broadcasting Law, pursuant to the provisions of Articles 170 and 171 of the Law.

The document will be available in the website of the Institute to those interested, for comments and opinions, general rules that establish the requirements and deadlines are included, for applications for authorization submitted before the IFT of the following activities:

• Establish and operate or use a marketer of telecommunications services without the character of concessionaire;

• Install, operate or use earth stations to transmit satellite signals;

• Install telecommunications equipment and transmission means crossing borders country;

• Exploit allowances and reception of signals and frequency bands associated with foreign satellite systems that cover and can provide services in the country;

• Temporarily use spectrum bands for diplomatic visits.

This exercise in transparency and citizen participation will be open for a period of 20 working days, counted from the day of its publication in the Internet portal of the Institute www.ift.org.mx

The provisions contained in the Draft seek to equip stakeholders of the regulation that provides the procedural requirements of applications that are promoted, provide legal certainty to the regulated agents in such procedures and helping to improve labor and administrative management.

It should be noted that the Authorizations Rules Draft is not applicable to the Preponderant Economic Agent in the telecommunications sector or for concessionaires that are part of this economic, because Article 174 of the Law provides that none of them can participate directly or indirectly in any marketing services company.

Moreover, the Plenary adopted the Declaration of Principles of the Institute, from which the public servants of this regulatory body will guide their work, consistent with the established in the legal framework governing it. The principles under which officials govern their action are: Autonomy, Objectivity and Impartiality, Effectiveness and Efficiency, Transparency, Legality and Certainty, Institutional Loyalty, Accountability, Professionalism, Honesty and Equality, seeking always to the benefit of society.

These principles govern all public servants and the Institute without exception of activity, level or function. In this sense, compliance depends on the commitment and judgment of the Institute staff, so not replace or modify the validity of the regulations applicable to them in the exercise of its functions and shall promote public service vocation and sense of belonging.

The Declaration of Principles will enter into force on the day following its publication in the Portal Institute.

Plenary also approved the Code of Conduct for Public Officials of the Institute, which define the rules of behavior that should guide the behavior of Institute public servants in the performance of their jobs, charges and commissions, to specific situations presented to them.

With this guide to the exercise of the powers of Institute public servants, lays a solid foundation for preserving the credibility of IFT as a regulatory authority and independent, professional, efficient and transparent competition, contributing to the development of telecommunications and broadcasting, the advance of information society and knowledge in our country, and thereby to encourage the improvement of quality of life and development opportunities for all Mexicans.

That is why acts defined by this Code are mandatory for all staff who holds a position, post or commission of any nature in the Federal Institute Telecommunications.

As part of the Institute Basic Guidelines of Behaviors, contained in the Code of Conduct, is will install an Ethics and Inclusion Committee, which will be responsible for promoting a culture of integrity in the workplace, as well as practices of inclusion and non-discrimination to form a stimulating and participatory work climate; sustained in trust, respect for the dignity, diversity and equity, which contributes to the fulfillment of the objectives and institutional goals.

The Code of Conduct shall enter into force on the day following its publication in the Portal of the Institute.

On the other hand, the Plenary decided to impose sanctions and declare the loss of property for the benefit of Nation of equipment for the use of radio spectrum without the grant, permit, authorization or assignment in the towns of Naucalpan, State of Mexico (Frequency 159.4875 MHz) and in Monterrey, Nuevo León (frequency 157 810 MHz).

IFT Plenary approves to submit for public consultation the draft where is defined the interconnection points of Preponderant Economic Agent in telecommunications network

• This exercise in transparency and citizen participation will be held from today until February 3^rd

• This performs in compliance to the Twenty-fifth Transitional Federal Telecommunications and Broadcasting Law article

• The document states that any interconnection points of the Preponderant Economic Agent PEA (Agente Económico Preponderante, AEP) will receive traffic from the public telecommunications networks of other concessionaires to finish anywhere in their network

In extraordinary session, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) decided yesterday to submit for public consultation, the Draft in which the public telecommunications network interconnection points of PEA are defined, in compliance with provisions of Twenty-fifth Transitional article of the Federal Telecommunications and Broadcasting Law Decree.

To promote transparency and citizen participation in the emission of general provisions processes that the Institute generates, as established by Law, this document will be available for consideration of anyone interested, in the website of this regulatory body, in the period between January 20^th and February 3^rd, 2015, to receive feedback from industry and general public.

In the Draft interconnection points to PEA public telecommunications network in the telecommunications sector are defined, this should be made available to industry participant concessionaires, in order to exchange traffic between their networks.

In this sense, and complying strictly with the order issued by the Institute concerning the elimination of long distance, published in the  Official Gazette of the Federation (Diario Oficial de la Federación, DOF), December, 24^th 2014, where was defined the entire national territory as a single Local Service Area (Área de Servicio Local, ASL), in the draft submitted for consultation, states that any of the PEA interconnection points will receive traffic from other concessionaires of public telecommunications networks that finish anywhere on their network.

In the draft to be submitted to public consultation, there are also defined interconnection points for the exchange of IP traffic in order to facilitate the gradual migration toward next generation networks (NGN).

The Plenary of IFT resolved that the contractual relations between Telmex and Dish México constitute a concentration that should be notified prior its performance

• A fine was imposed for failure to report acts in which Telmex acquired control over Dish México

• This constitutes a not notified concentration in accordance to the Federal of Economic Competition Law

• Imputes liability to a company of Dish México economic group for submitting false information in the procedure

• The Institute conducted an analysis of the effects of this transaction and determined that they were not against the Federal Economic Competition Law (Ley Federal de Competencia Económica, LFCE)

• The penalty was not imposed as a result of a harmful practice for the market but for the breach of the obligation to notify a concentration before testing

On October 4th, 2013, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) received from the now extinct Federal Competition Commission (Comisión Federal de Competencia, CFC) the record of an investigation into the possible realization of prohibited conduct by Federal Economic Competition Law (Ley Federal de Competencia Económica, LFCE) in markets of provision of restricted television and audio service, wireline and service access to broadband Internet.

The investigation resulted for the accumulation of three complaints against Telmex, Dish México and companies belonging to their respective economic groups by the probable realization of various events which could constitute violations to the LFCE. The research is not limited to the complaints content, it aims to verify whether the operators act in compliance with the LFCE.

On February 24th, 2014 the research phase conclude. Later, during the month of May that year, the Unit for Monitoring and Verification of IFT sent the UCE various documents by Telmex and COFRESA —a company of the economic group of Dish México— that, by referring to coincide with the analyzed events, was considered by the Head of the UCE for the issuance of the Office of Probable Responsibility (Oficio de Probable Responsabilidad, OPR) of May 20th, 2014.

The OPR charged probable responsibility to Telmex, Dish México, and their respective economic groups companies for the performance of a concentration without having previously notified the authority, as mandated by the LFCE. That complaint was based on facts that had already made taken effect since 2008. Once notified of OPR, all interested operators in the procedure had the opportunity to present evidence and arguments before the IFT.

During the months of May to November the presentation of evidence and arguments were vented. Furthermore, in November 24th, 2014, in response to requests submitted by the parties, the IFT Plenary granted a hearing to the economic agents with legal interest in the proceedings, effect submit their statements directly to the Commissioners of the IFT, which took place on December 3^rd of that year.

After evaluating the OPR, testing and demonstrations of the parties to the proceedings, on January 7th, 2015, the IFT Plenary resolved that:

• Telmex, through its subsidiary Teninver, acquired control of the company Dish México, through various contracts, which constitute a concentration in terms of the LFCE.

• For the amount of these acts, the concentration was subject to the obligation to be notified before its implementation. The parties failed to comply with this legal obligation, so they were sanctioned in the terms established by the LFCE.

• Cofresa, a company belonging to the same group of Dish México economic interest, was held responsible for having falsely declared to the authority for this procedure.

Based on this and on the basis of Article 35, section VII, of the LFCE, the IFT Plenary resolved to impose the following penalties:

1) To Teléfonos de Mexico, S.A.B. de C.V. a fine in the amount of $ 10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).

2) To Teninver, S.A. de C.V. a fine in the amount of $ 3,895,600.00 (three million eight hundred ninety-five thousand six hundred pesos 00/100 M.N.).

3) To Comercializadora de Frecuencias Satelitales, S. de RL de C.V. a fine in the amount of $ 3,098,249.30 (three million ninety-eight thousand two hundred forty-nine pesos M.N 30/100).

4) To Corporativo Mexicano de Frecuencias Dish, S.A. de C.V. $ 8,553,789.20 (eight million five hundred fifty-three thousand seven hundred eighty-nine pesos 20/100 M.N.).

5) To Dish México Holdings, S. de R.L. de C.V. a fine in the amount of $ 10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).

6) To Dish Mexico, S. de RL de C.V. a fine in the amount of $ 10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).

7) To Grupo Frecuencia Modulada Televisión, S.A. de C.V. a fine in the amount of $ 10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100)

8) To Echostar México Holdings Corporation a fine in the amount of $ 10'518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).

While the parties were penalized for not perform the notice to which they were bound, the Institute conducted an analysis of the effects of this transaction and determined that they were not contrary to the LFCE.

The penalty was not imposed as a result of harmful practice for the market, but by the failure to notify a concentration, which obstructed the possibility for the authority to exercise its preventive powers that both the Constitution as the LFCE give to the IFT in economic competition.

Thus, the resolution of January 7th, 2015 concludes a procedure carried out in terms of the LFCE, which does not prejudge the effects of these events have under the Federal Telecommunications and Broadcasting Law or other applicable provisions.

The decision was notified to the sanctioned economic agents who had knowledge of this on 8th and 9th January 2015, in accordance with the provisions of the LFCE. Therefore, in attachment to the legal provisions applicable to these procedures, the Institute informs the public of this resolution until today, once the notices to sanctioned operators have produced legal effects.

IFT Plenary resolved interconnection disputes

• Correspond to companies Alestra and Pegaso PCS, and NII Digital both GTM as Total Play Telecomunicaciones

• The Plenary of the Institute determined the rates payable by companies in the period between 2012 and 2015

• The resolutions that refer to switched termination services for users of mobile and fixed networks, mainly

The Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) resolved in ordinary session, the interconnection disputes between the companies Alestra, S. de R.L. de C.V. and Pegaso PCS, S.A. de C.V. and Digital NII, S. de R. L. de C.V. with Grupo de Telecomunicaciones Mexicanas, S.A. de C.V. and with Total Play Telecomunicaciones, S.A. de C.V. respectively.

Cases of Alestra with Pegasus; and the Digital NII with GTM for the years 2012, 2013 and 2014, they began their process prior to the entry into force of the Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión, LFTR), while the process of NII Digital with Total Play for the corresponding rates for the financial year 2015 began its proceedings during the term of this.

Thus the IFT ruled:

Alestra-Pegaso PCS:

• The interconnection fees payable to Alestra Pegaso PCS for switched termination services on mobile users under the arrangements "calling party pays" and "national calling party pays" will be as follows:

a) From January 1° to December 31, 2012, $ 0.3214 pesos M.N. per interconnection minute.

b) From January 1° to December 31, 2013, $ 0.3144 pesos M.N. per interconnection minute.

c) From January 1° to August 12, 2014, $ 0.3199 pesos M.N. per interconnection minute.

For the period from August 13 to December 31, 2014, shall be extended the interconnection rate indicated for the period from January 1 to August 12, 2014.

NII Digital and GTM:

2012, 2013 and 2014

• The interconnection rate that NII Digital and GTM must pay each other for switched termination services on fixed users in the Local Service Area with interconnection point will be:

a) From January 1° to December 31, 2012, $ 0.02432 pesos MN per interconnection minute.

b) From January 1° to 31 December 31, 2013, $ 0.02392 pesos MN per interconnection minute.

c) From January 1° to August 12, 2014, $ 0.02445 pesos MN per interconnection minute.

2015

• The interconnection rate that NII Digital and GTM most pay each other for termination services on local service for fixed users, from March 13 to December 31, 2015, will be $ 0.004179 pesos M.N. per interconnection minute.

• For the period from January 1° to March 12, 2015, the rate for fixed local service users will be determined by the Institute for 2014.

NII Digital-Total Play:

2014

• The interconnection rate NII Total Play Digital and must pay each other for switched termination services for fixed users from January 1° to August 12, 2014 will be $ 0.02445 pesos M.N. per interconnection minute, this shall be extended for the period from August 13 to December 31, 2014.

• The interconnection fee that Play Total must pay to NII Digital, from January 1° to August 12, 2014, for switched termination services for mobile users under the modality "calling party pays" and "national calling party pays ", will be $ 0.3199 pesos M.N. per interconnection minute, same shall be extended for the period from August 13 to December 31, 2014.

2015

• The interconnection rate that Total Play must pay to NII Digital for switched terminating services for mobile users under the modality "calling party pays" and "national calling party pays" from March 13 to December 31, 2015 will be $ 0.2505 pesos M.N. per interconnection minute.

• The interconnection rate that NII Digital and Total Play must pay each other for termination services on fixed local service users, from March 13 to December 31, 2015, will be $ 0.004179 pesos M.N. per interconnection minute.

• For the period from January 1°, 2015 to March 12, 2015, both for termination service of local service in mobile users under the modality "calling party pays" to the termination service of local service of fixed users, the above rates will be extended.

• No place to determine the rate applicable to transit service whenever Total Play is not obligated to provide those services, in terms of the Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión, LFTR).

In all cases, the consideration payable by the parties shall be calculated based on the actual duration of calls, unrounded minute.