Instituto Federal de Telecomunicaciones

IFT celebrates World Competition Day

• The regulatory body for telecommunications and broadcasting also is responsible, according to the Constitution, of economic competition in both sectors

• It is an opportune occasion to celebrate cooperation between competition authorities, national and foreign, that seek through its competition policy and regulation efficiency of markets for the benefit of users

• The Institute is part of the Competition Committee of the OECD and works to join to other international networks in the field

This December 5^th World Competition Day is celebrated, an occasion in which the authorities on the subject of many countries unite their voices and actions to actively promote the culture of competition and celebrate the importance of their role to promote economic activities, improve income distribution and increase consumer welfare.

The Federal Telecommunications Institute (IFT), besides of being an autonomous body responsible for the efficient development of telecommunications and broadcasting, is also the competition authority in both sectors. Since its inception, the Institute has worked to boost competition and free competition in telecommunications and broadcasting, as established by the Constitution, the Federal Law of Economic Competition and the Federal Telecommunications and Broadcasting Law.

The IFT included as a key element in its institutional objective, ensuring free competition, and remove restrictions on convergence and innovation in telecommunications and broadcasting.

The Institute, as other jurisdictions, faces the challenge of combating anticompetitive practices and channel consolidation and vertical and horizontal integration of enterprises, with the aim of generating a healthy dynamic between competitors which results in benefits for the user. In its dual responsibility also has the challenge of incorporating the promotion of free competition as a cross-cutting principle in its regulatory work.

Specifically, they are important issues for telecommunications and broadcasting service convergence and digitization of content neutrality competition, technological neutrality and network neutrality as well as dynamics with which services on network are developed and the possibilities opened up by new technologies, in coexistence with traditional means and services.

For the Institute, the World Competition Day is a timely opportunity for cooperation between competition authorities, national and foreign, to join hands in this common purpose, especially in an industry that has world-class competitors.

Remember that the Institute, from this year on, along with the Federal Competition Commission (Comisión Federal de Competencia, COFECE) is part of the Competition Committee of the Organization for Economic Cooperation and Development (OECD).

Also, the IFT has proposed and is driving the formation of a Group of Economic Competition within the Latin American Forum of Telecommunications Regulators (Foro Latinoamericano de Entes Reguladores de Telecomunicaciones, Regulatel).

In addition, the IFT is in the process of being part of the International Competition Network, an international organization whose mission is to advocate for the adoption of rules and competition policies in the world, to propose and facilitate an effective international cooperation for the benefit of the organisms that integrate it, the economies and consumers.

The Institute has made economic competition a common element in the actions and policies implemented in the telecommunications and broadcasting in our country, therefore warmly welcomes this World Competition Day.

The Federal Telecommunications Institute presents the Gaceta IFT on digital version

• It is intended that this means of dissemination is an area of ongoing consultation for public officials, journalists, academia, students and members of civil society concerned with telecommunications and broadcasting

The Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) presents its digital gazette, a new medium in which various technological tools through which employ multimedia and interactive content, generating greater interest and proximity to the reader with the topics offered.

This publication, whose design is innovative, is conceived as a mean for discussion of ideas around telecommunications and broadcasting, with the participation of spokespersons of the Institute, academia, industry, international organizations and agencies specialized in both sectors, civil society organizations and service users.

Unlike print publishing, digital Gaceta IFT expands its distribution, as it will be accessible to the public from any region of the country or abroad, as it can be downloaded via Internet. Gabriel Contreras, Commissioner- President of the Federal Telecommunications Institute, explained that "the first digital issue of the Gaceta IFT is intended to be a space to discuss and analyze issues of crucial importance for the development of the sectors of telecommunications and broadcasting, not only in Mexico, but in the world. We expect the industry and academia to have the opportunity to work with us on this important project that aims to convey information in a more accessible way to the entire society".

The Gaceta is a diffusion space whose pages are open to critical views in a constructive spirit in order to contribute to the understanding of the topics covered. This new publishing project began with the participation of Commissioners of the Federal Telecommunications Institute, Adriana Labardini, Maria Elena Estavillo and Fernando Borjón as well as other IFT officials and external partners from industry and academia.

"The Gaceta IFT is essential for achieving the communication objectives of the Institute, as through to it society is informed and is created an opinion regarding the matters of responsibility for this autonomous regulatory body," said Edgar Yeman García Turincio, General Coordinator of Social Communication of the IFT.

The publication will be bimonthly, it can be downloaded for free from Android app stores and Windows (8.1 version). In the coming days will be available on iOS.

IFT Plenary approves to submit to public consultation on the provisions draft for not charging long distance to users from 1^st January of 2015

• The proposed provisions aim that, from January 1^st, 2015, concessionaires will stop charging for domestic long distance calls to its users

• Is given certainty to concessionaires of public telecommunications networks as to the action to be taken is given to ensure the continuity of public service telephone telecommunications

• Contemplate the rights of users and obligations of telecommunications services providers

• Public consultation shall within 10 working days from the working day following its publication in the Internet page of the Institute

In an extraordinary session, the Federal Institute of Telecommunications (Instituto Federal de Telecomunicaciones, IFT) agreed to submit to public consultation the Provisions Draft to be complied for concessionaires who provide public telecommunications services via public telecommunications networks from domestic long distance to refrain charging users for calls made to any domestic destination from January 1^st, 2015.

These provisions aim to ensure that, as of January 1^st, 2015, concessionaires stop charging users for domestic long distance and there is certainty for both users and concessionaires, that there is continuity of public telephone telecommunications service, in accordance with the provisions of Article 118, fraction V, and the twenty-fifth Transitional Federal Telecommunications and Broadcasting Law.

In this sense, the draft is put to public consultation and addresses three fundamental aspects: 1) the rights of users of telecommunications services in the light of the new Law and the current administrative provisions on consumer protection; 2) the obligations of concessionaires and other telecommunications service providers have acquired as a result of the issuance of the Law, and 3) treatment selection by pre-subscription service, derived from the disappearance of charges for domestic long distance calls.

Thus, to promote transparency and citizen participation, the IFT made this public consultation in order to receive comments and opinions from industry, academics, analysts and the general public for a period of 10 working days from the next day business of its publication in the Internet portal of IFT www.ift.org.mx

As with all exercises of this type made by the Institute, the contributions are assessed in order to have a more robust document that will be submitted, in due course, and considered for the Plenary for its publication in the Official Gazette of the Federation and entry into force.

The IFT Plenary delivered the procedure, requirements and formats for the electronic registration of fees that concessionaires of telecommunications services offer to users

• The Electronic System for rates registry in the website of the Institute was put into operation.

• Agrees to begin public consultation on "Regulatory Provisions Draft of the Federal Law of Economic Competition for telecommunications and broadcasting sectors".

• Is submitted for public consultation the modification to the General Guidelines on must carry and must offer.

• Agrees to amend the Operation Rules of the technical committees of electronic management systems for mobile telecommunications services, fixed and effective unbundling of the local network, which are established in the measures imposed to the Preponderant Economic Agent PEA (Agente Económico Preponderante) in telecommunications.

In ordinary session, the Federal Institute of Telecommunications (Instituto Federal de Telecomunicaciones, IFT) Plenary, approved the procedure, requirements and formats that telecommunications services concessionaires and authorized must comply, to introduce electronic registration of its user fees prior to its entry into force.

As reported promptly, the draft procedure, requirements and applicable forms to concessionaires and authorized to provide telecommunications services for the electronic filing of formats of fees to users are subject to public consultation from August 18th to 29^th this year, period in which the comments and opinions from industry representatives, academics and experts were received, which allowed to strengthen the document.

Thus, the provision adopted at yesterday's session allows for the Electronic System, to be available on the IFT website through which providers of telecommunications services will register their rates before this regulatory body, such and as established by Article 205 of the Federal Telecommunications and Broadcasting Law. With this mechanism, artificial barriers to the immediate adoption of competitive trading schemes are eliminated, for the benefit of users.

The content of the fee and/or promotion to users shall state, among other things, the following:

• Description of the service(s) to be provided according to the fee to users, or promotion to register.

• The amount of the fee to users or promotion in question, expressed in pesos, noting both the amount thereof without tax, as the amount including taxes.

• The respective measurement unit of fee or promotion to users.

• The modules, packages, services and/or other optional or additional equivalent fee associated with users or promotion to register. They must not be registered independently of the fee to users or promotion in question.

• For the specific case of television service pay, the fee to users or promotion to register must accompany the information on the comprising channels.

• Application Rules to the fee to respective users or promotion.

• Where appropriate, the applicable penalties.

These provisions shall enter into force on the day following its publication in the Federal Official Gazette (Diario Oficial de la Federación, DOF). Thereafter, there will be a period of 60 calendar days during which they may continue to be submitted applications for registration fee or promotion on the Oficialía de Partes of the Institute, period within which the registration for telecommunications concessionaires and authorized to have access to the electronic system.

On the other hand, the Plenary agreed to submit for public consultation the "Regulatory Provisions Draft of the Federal Economic Competition Law for telecommunications and broadcasting sectors". This exercise in transparency and citizen participation will be available for viewing and sending of opinions, comments and proposals for a continuous period of 20 working days from the working day following its publication in the Internet website of the Institute.

This Draft has been preceded by the Agreement dated on July 28th this year, whereby the Plenary of the Institute issued the Regulatory Provisions of the Federal Law of Economic Competition for the telecommunications and broadcasting, not subjected to public consultation due to the emergency of the situation. This situation resulted from the entry into force of the Federal Law of Economic Competition, which caused the tacit abrogation of the Regulations of the Federal Law of Economic Competition, which could undermine the objectives of the Institute of effectively fulfill its role of authority in economic competition to substantiate the procedures referred to the Competition Law. It is noteworthy that the same Law provides for this possibility when there are situations that merit.

However, as reported in due course, the IFT pledged to hold a public consultation on these Regulatory Provisions, in order to promote citizen participation, strengthen the document with input from stakeholders on the issue and issue them within the deadline set by Law.

Similarly, the Plenary approved to public consultation, the modification to the general Guidelines on must offer and must carry, published in the Federal Official Gazette on February 27th, 2014, which establish technical criteria for the proper implementation of the forecasted obligations under the Constitution for open and restricted television on offer and retransmission of broadcast signals.

The amendment is proposed along these lines reflects the need to adapt some of its articles and definitions to the Federal Telecommunications and Broadcasting Law, the Mexican State Public Broadcasting System Law, as well as changes to some articles of the Federal Copyright Law and entry into force of the new Organic Statute of the IFT. Likewise, it is advisable to perform various accuracies derived from content of Article 2, Sections I and III of the Regulations of Restricted Television and Audio Service.

The public consultation will be available on the website of IFT www.ift.org.mx for a period of 10 working days from the working day following its publication. Once the public consultation is closed, the Content and Broadcasting Unit, within 10 working days, shall submit of the Institute Plenary consideration, a project that considers the outcome of the consultation of merit, in order to be approved and published the amendment to the Guidelines on the DOF.

In other issues, it was agreed to amend the Rules of Operation of the technical committees of electronic management systems for mobile telecommunications services; electronic management systems for fixed telecommunications services; and effective unbundling of the local network, which are established in the measures imposed to the Preponderant Economic Agent (PEA) in telecommunications. In these groups, formats, interfaces, security and encryption mechanisms, management of databases and everything related to Electronic Management Systems are defined.

In order to provide greater legal certainty for concessionaires of public telecommunications networks and mobile virtual network operators to effectively participate in defining the various technical aspects concerning the various Committees, the IFT Plenary decided to modify the Rules of Operation regard to the processing of classified or confidential information that could be exchanged or generated within and because of the work of the Committees referred.

Also, he was appointed the Head of the IFT Regulatory Policy Unit as President of each of the committees. While for the Technical Committees of Electronic Management Systems in mobile and fixed telecommunications, respectively, was appointed as alternate Chairman, the General Director of Interconnection Control and Resale of Telecommunications Services and the Director of Dispute Resolution as Secretary.

In the Technical Unbundling Committee the General Director for Development of Telecommunications and Broadcasting and the Director of Dispute Resolution as Secretary.

Moreover, the Plenary determined the conditions that in the interconnection field could not agree public telecommunications networks concessionaires called: Tele Fácil México, S.A. de C.V. with enterprises Teléfonos de México S.A.B. de C.V. (Telmex) and Teléfonos del Noroeste S.A. de C.V. (Telnor).

The resolution states that within 10 calendar days from the day following its notification, Tele Fácil México and the companies Telmex and Telnor shall interconnect their respective public telecommunications networks and celebrate their interconnection agreements of its telecommunications public networks.

The public consultation is extended for the document on Review of the guidelines to develop cost models

• With the extension approved by the Plenary, there is opportunity to receive input from all the interested in participating in this exercise until November 26^th

• The IFT considered appropriate this expansion, considering that this regulatory body should have enough time to meet various processes that seek to address the legal mandate to publish, in the fourth quarter, the interconnection rates that will be effective in 2015

• The Plenary approved to submit the public consultation of the "Agreement Draft whereby the minimum technical conditions for interconnection between concessionaires operating public telecommunications networks are established"

In the application filed by members of the industry to the regulator to extend the period of public consultation of the document entitled Review of guidelines for developing cost models, which serve to determine interconnection rates, and taking into account the relevance of this issue for public telecommunications networks concessionaires, the Federal Institute of Telecommunications (Instituto Federal de Telecomunicaciones, IFT) Plenary decided yesterday, in an extraordinary session to extend the period of the exercise of civic participation, so that every interested opinions are received until November 26^th.

While the concessionaires and Mexican Chamber of Electronics, Telecommunications and Information Technologies (CANIETI) members requested an extension of 10 working days to extend the original period of public consultation, the Institute found that since it must meet the legal mandate under Article 137 of the Federal Telecommunications and Broadcasting Law to publish in the last quarter the interconnection rates that have resulted in cost methodologies issued by this regulatory body, which will apply in 2015, they should have time enough to enable and carry out the tasks assigned, including analysis of received opinions and the development of the methodology as well as the construction of models.

Thus, in order that industry, academia and the general public have each with the times required for the implementation of activities that correspond to them, the Plenary considered that it is not only appropriate but also desirable to extend the term of the public consultation (which expired today) until 26^th November 2014.

On the other hand, in the same session, the Plenary resolved to submit to public consultation the "Agreement Draft whereby the minimum technical conditions for interconnection between concessionaires operating public telecommunications networks are established", in order to receive feedback from industry, academia and society in general to nourish the document presented. Interconnection services are those that are provided between concessionaires of telecommunications services for interconnection between their networks. The establishment of minimum technical conditions to perform the interconnection allow existing concessionaires and potential new participants to obtain basic interconnection conditions without the need to engage in lengthy negotiations, thus avoiding undue discrimination by any concessionaire. As there are technical conditions of predetermined interconnection, certainty is generated and the competitive environment is favored in providing interconnection services, since all market participants equitably access to necessary inputs to provide telecommunications services to end users.

The document, which will be available to interested parties on the website of the Institute www.ift.org.mx, for a period of ten (10) working days from the day of its publication, includes the minimum technical conditions about traffic driving, its origination and termination, transmission links, signage, transit, access ports, colocation, infrastructure sharing for interconnection, billing and collection, and other ancillary services and access to the same services.

With the determination of the minimum technical conditions it is expected for concessionaires that operate public telecommunications networks to sign within the shortest time possible interconnection agreements, which will give certainty to interconnect their networks and to develop their business plans.

IFT receives the coverage and economic proposals of three bidders in the tendering process of frequencies to form two national broadcast networks

• With this begins the second stage of the bidding process, which is performed for the first time in the history of the country to allocate frequencies concessions for open television

• The bidders are: Centro de Información Nacional de Estudios Tepeyac, S.A. de C.V.; Cadena Tres I, S.A de C.V. and Grupo Radio Centro, S.A.B. de C.V.

• After performing the corresponding analysis of the submitted documentation, those receiving a certificate of participation are formally considered Participants in the procedure

In compliance with the mandate set out in Section II Eighth Transitory Article of the Decree of the Constitutional Reform in Telecommunications, on March 7^th this year, the Federal Telecommunications Institute (Instituto Federal de Telecomunucaciones, IFT) published in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF) the Call for Public Bidding the concession to use, develop and operate commercial transmission channels for the provision of broadcast digital television public service, in order to form two networks with national coverage. That day the Bidding Bases were published in the Institute website.

On September 24^th this year, and in order to adapt the tender to the provisions of the new Federal Telecommunications and Broadcasting Law, the IFT Plenary decided to modify the Bidding bases referred, which also was adjusted the schedule to reduce the time originally set.

In keeping with the established times, last November 13^th the IFT Plenary issued a favorable opinion on economic jurisdiction over applications from eight subjects concerned.

Today, having completed the prescribed period (from 18 to 20 November) for the groups which received favorable opinion on economic competition could submit the bid security and closed envelope with the Coverage and Economic Offers, IFT received such documentation, in the presence of a Notary Public Guillermo Villarreal Torres and Social Witness NGO Contraloría Ciudadana para la Rendición de Cuentas A.C. of the following companies:

• Centro de Información Nacional de Estudios Tepeyac, S.A. de C.V.

• Cadena Tres I, S.A de C.V.

• Grupo Radio Centro, S.A.B. de C.V.

Thus begins the second stage of the bidding process to assign new frequency concessions of digital broadcast television.

In accordance to the Bidding bases, between December 9^th and 11^th, the IFT may request information and/or missing documentation to the bidders. From January 13^th to 15^th of 2015, applicants must provide the information if it is required of them. This second stage of the process will conclude with notification of Certificates of Participation to be delivered between March 5^th and 9^th, to those who have met all the requirements.

The third stage involves the opening of envelopes with the Coverage and Economic Offers of the Participants, which will be held on March 11^th. The fourth stage of the process comprises the issuance of judgment and delivery of the respective concession titles. The legal settlement will be issued 19^th March at the latest.

Significantly, it is the first time in Mexico history that a bidding procedure is done to win frequency spectrum for the provision of broadcast television services. Thus, the IFT promotes greater competition in this market, for the benefit of service users.

IFT Plenary resolved to declare the loss for the benefit of the nation of equipment intended for irregular use of frequency

The Federal Telecommunications Institute (IFT) Plenary decided in an extraordinary meeting yesterday, to impose sanctions consisting of loss of property for the benefit of the Nation of equipment used by two people in Aguascalientes and Mexico City, respectively with which an improper use of the radio spectrum was made. In Aguascalientes, the process began when in November 2013, was detected a person using frequency bands without concession or authorization during the work of radio monitoring and surveillance of radio spectrum. As a result of the concerned verification actions, it was agreed to punish the offender for violation of the Article 11, Section I of the then existing Federal Telecommunications Law, equivalent to 2000 minimum wages fine, since the legal use of radio spectrum is not justified as well as the loss of equipment was also resolved in favor of the Nation by the violation of Article 72 of the Law.

Similarly, in the case of Mexico City, the IFT Plenary determined to declare loss assets for the benefit of the Nation on the equipment proved that these were invading the general communication channel (spectrum) concessioned to a wireless operator.

ITU elected General Secretary meets IFT Commissioners

• This is the first visit by Mr. Houlin Zhao after being elected to head the international body

• The meeting was attended by the President Commissioner, Gabriel Contreras, and Commissioners Fernando Borjón and Mario Fromow

• During the meeting several issues were addressed, like the interest in Mexico to exercise regional leadership that will enrich the ITU work and the promotion of small and medium sized entrepreneurs in the field of information and communications technologies

Houlin Zhao, elected Secretary General of the International Telecommunication Union (ITU), held this November 18^th a courtesy visit to the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT).

After he has occupied the position of Vice Secretary-General of the ITU, Zhao was elected by a large majority for the Plenipotentiary Conference 2014, held in Busan, Korea, to occupy the highest position of that international organization, departing from January 1^st, 2015.

As part of his visit to Mexico, the first in his capacity as elected General Secretary, was received by the President Commissioner, Gabriel Contreras and by the Commissioners Fernando Borjón and Mario Fromow.

Among the topics covered during the meeting the results of the Plenipotentiary Conference 2014, were the interest in Mexico exercising regional leadership that will enrich the work of the ITU and the promotion of small and medium entrepreneurs in the field of technology information and communication underscore, as well as ITU collaboration with academia.

Finally, Mr. Zhao referred to the 150^th anniversary of the organization in 2015, and invited the IFT to participate actively in the events that shall be conducted with that purpose.

Telmex, Telnor and Telcer must publish reference offers of wholesale services for this month

• The Federal Telecommunications Institute reported on Friday, November 7^th its resolution to the Preponderant Economic Agent (PEA) in telecommunications, who must publish it no later than 21^st of this month

• The companies have 15 days to sign the agreements with concerned concessionaires, having made the request

• These measures will allow to those different to the PEA Concessionaires to have access to infrastructure in better conditions of competition for the benefit of the users

On Friday November 7^th, companies that constitute the Preponderant Economic Agent (PEA) in the telecommunications sector (América Móvil, Grupo Financiero, Grupo Carso, Telmex and Telnor), were notified of Reference Offers of wholesale services approved unanimously by the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) at its Sixteenth Ordinary Session, two days before.

Not later than November 21^st, such companies must publish the Reference Offers, which establish the specific terms and conditions under which they should provide wholesale telecommunications services and allow access to its infrastructure to other concessionaires and providers of these services in better competition conditions for users. With these offers, which will be valid until December 31^th, 2015, concessionaires PEA competitors will have the necessary information to make decisions about the marketing of wholesale telecommunications services.

Additionally, Reference Offers must meet the criteria in the Fixed and Mobile Measures of Preponderance Resolution, this points out among other things, that the Offers must not contain discriminatory or abusive conditions in the provision of services, nor should condition its provision or create unnecessary requirements for the service delivery of these.

This ensures that applicant concessionaires to compete with the PEA in providing retail services in terms of quality, added value services and rates, among others, thereby benefiting the end user.

The Reference Offers apply to the following services:

1) Marketing service or resale by the Mobile Virtual Network Operators

The marketing of PEA mobile telecommunications services (voice, SMS and data) is opened to companies known as Mobile Virtual Network Operators (MVNOs), which do not have spectrum.

2) Access and Passive Infrastructure Sharing in Mobile Networks and Fixed Networks

It will allow concessionaires of public telecommunications networks to set up their own infrastructure, taking advantage of unused capacity of PEA mobile and fixed networks.

3) Wholesaler Service of Visitor User

Will enable mobile telecommunications concessionaires other than PEA, to expand the geographical coverage of its services, for example, in regions where they do not have coverage.

5) Wholesaler Service of Leasing of Dedicated Links

It will provide a tool to regulate the provision of relevant wholesale service, including dedicated links, which serve as essential input for the provision of other telecommunications services.

It should be noted that PEA has 10 working days from notification to publish the Reference Offers on its website and to give notice of the thereof issuance in two newspapers of national circulation.

The PEA is required to sign agreements with concessionaires that ask for the provision of those services on 15 working days after being made the request.

Reference Offers are the contractual framework that provides certainty to PEA and services applicants, and promote more effective competition in the telecommunications sector.

With the approval of these Reference Offers and its subsequent application, the IFT monitors the implementation of the various specific measures to be met by the PEA, according to the legal mandate of this regulatory body.

Erratum: In the second paragraph of this press release it says "Not later than November 21^st such companies must publish Reference Offers, which establish the specific terms and conditions under which should provide wholesale telecommunications services and allow access to its infrastructure to other concessionaires and providers of these services at better conditions of competition in favor of users."

However, in the calculation of the days it was not considered that on Monday 17^th, November is a non-business day, so that the aforementioned period is not the Nov. 21^st, but 24^th of this month.

• Is submitted for public consultation on the principles of transparency and citizen participation, in terms of the provisions of the Law

• The document contains the mechanisms of interaction between telecommunications enterprises and security agencies and law enforcement cooperation to be effective and timely

• In the Draft guidelines not only the provisions of the Law are followed, also respect for human rights and protection of privacy and personal data of users

• At no time record retention or content of communications is established

• It is proposed to establish special service code 066 (ZERO, SIX, SIX), as the only nationally harmonized numbers for the provision of emergency services